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The #1 Source for discount Contractor General Liability coverage

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CONTRACTOR GENERAL LIABILITY COVERAGE

With savings to 65%, we understand that different types of Contractors have different types of insurance needs when it comes down to Contractor General Liability protection.

Our team of insurance specialists will fine tailor a liability and property safeguard to meet your individual business needs, allowing you to focus on what matters most, making your company succeed.

What is Contractor General Liability?

The main function of Contractor General Liability Insurance is to protect business owners and operators against lawsuits which may arise from the following:

  • Liability From Accidents
  • Contractual Liability
  • Products Made by The Insured
  • Liability Caused by a Worker Employed by the Contractor 

In a Nutshell

Contractor General Liability Insurance is primarily used as a safeguard against third party lawsuits arising from Bodily Injury and/or Property Damage incurred by the negligence of a Contractor (your business entity) or an employee. These potential lawsuits may arise when the Contractor’s negligence has resulted in Bodily Injury, Property Damage or Personal/Advertising Injury sustained while a construction operation is ongoing or many years after the project has ceased or been completed.

Why do I Need it?

Contractor General Liability is the “go to” insurance coverage when something goes wrong at the job site. It’s the basic coverage that will protect you and your company when the worst possible thing can happen. Yes, you’re an experienced contractor, you follow the rules carefully and you take safety very seriously. So, why do you need it? In two words: Defense Costs.

Not only will your Contractor General Liability policy respond if you or your company is found to be liable for causing bodily injury or property damage, but the policy provides for Defense Costs. Lawsuits, although tried on fact, are typically filed based on “Perception”. This simply means that a lawsuit can be filed based on a simple notion that someone is “perceiving” they were done wrong, not that they actually were.

Your Contractor General Liability policy will pay your Defense Costs (legal fees) anytime an action is filed against you or your company whether frivolous or not. Every lawsuit file must be answered by an attorney and that can become very expensive, very quickly. Your Contractor General Liability policy pays the attorney fees for you! No scrambling around to find a qualified attorney you can afford – you simply call your claims department and the insurance company will take it from there so you can get back to work and focus on what matters most, making money!

What does it Cover?

Your Contractor General Liability will provide coverage for a host of different risks including:

  • Bodily Injury Liability – Provides coverage for physical damage to an individual (other than a company employee) and bodily injury caused by the insured or an employee at a client’s job site, home or business.

*This coverage is triggered and responds if you are considered liable for an injury caused to a 3rd person-

    • For example, you are working on a rooftop when a tool falls and just happens to hit your customer’s daughter who is trimming some shrubs next to the home. It’s your tool, she’s hurt and it’s your fault.
  • Property Damage Liability – Provides coverage for claims arising from property damage by the insured.

*This coverage kicks in if you or your employee cause damage to another person’s property in the course of your service.

    • Using the same example, your tool falls off the roof and instead of hitting a person goes through the soft top of your customer’s convertible.
  • Products/Completed Operations – Provides coverage for liability arising out of the insured’s products or business operations conducted away from the insured’s premises once those operations have been completed or abandoned.

*This will be the most important coverage required by your General Contractor. This coverage will pay if an action is brought against you for faulty workmanship provided by you or your company. In many cases these claims may arise long after your work was completed so it is important to never let your coverage lapse.

    • For example, your neighbor’s hired you to build a stairwell in his home and you’ve sold his wife a beautiful kitchen set you’ve made in your garage. The job’s finished, everyone’s happy. The next day his wife is walking down the new stairwell when the handrail comes loose and down she goes, tumbling all the way to the bottom of the stairs resulting in a dislocated shoulder. While she’s sitting in the kitchen waiting for the ambulance to arrive the leg snaps off the kitchen set chair you sold her and once again, down she goes again leaving her with a cracked vertebrae.
  • Medical Payments – Provides coverage for applicable medical cost by someone injured and needing medical treatment due to an accident on your premises.

*Medical payments can almost considered being a gift from the insurance company. This coverage will pay without proof of liability and will pay quickly on your behalf.

    • For example, you’re working at a job site, a third party suffers a minor injury and has expenses such as an Emergency Room or Doctor visit, your medical payments will respond without proof of liability up to the limits you select.
  • Personal/ Advertising Injury – Provides coverage for third party injury caused by libel, slander, copyright infringement, invasion of property or loss caused by your marketing or advertising that damages an individual’s reputation or rights.

*This is one that many don’t realize even exist in a CGL policy. This triggers a variety of different coverages above and beyond the typical physical damage claims one may expect from General Liability coverage.

    • For example, let’s just say nobody’s perfect. We’ve all said things, done things or wrote things that may or may not have been done with true intention. Unfortunately, in the world of modern business, some individuals prefer retribution over a lawsuit rather than an apology over a handshake.

What is the difference between an Admitted vs. Non-Admitted Carrier?

An Admitted Carrier follows state guidelines for insurance providers, while non-admitted carriers operate without submitting to state requirements.

The benefits of an Admitted Carrier is that its liabilities are backed up by state finances. If the carrier is to go bankrupt the state will use money from a designated fund to pay the claims for the policyholders once the carrier becomes insolvent. California’s designated fund is known as “CIGA” (California Insurance Guaranty Association)

The benefits of a Non-Admitted Carrier (aka Surplus Lines Carrier) is that the company often has more underwriting authority to write a broader scope of coverage because of the unrestricted rate structure Admitted Carriers are required to follow by the state, thus leaving Non-Admitted carriers a large financial surplus and the ability to write specialty coverage for risks such as General Contractors, Roofers and Demolition Specialist.

What is an Additional Insured?

An Additional Insured (AI) is a person or organization not automatically included as an insured (you) under an insurance policy who is included or added as an insured under the policy at the request of the named insured. 

This is the most common endorsement requested on the standard CGL policy.

At Fairbanks Insurance Brokers most General Liability policies written with us will come with a standard (CG 20 10 07 04 or Equivalent) Blanket Additional Insured endorsement Free of Charge.

What about Certificates of Insurance?

Certificates of Insurance (COI) are a very important factor in the negotiation process that is often overlooked by a consumer while shopping for a commercial insurance policy. Most Brokers fail to disclose to at the time of purchase that an agency may charge upwards of $100 per Certificate of Insurance in addition to any needed endorsements depending on the type of risk doing the work and the scope of operations performed for the project owner.

Free of Charge

At Fairbanks Insurance Brokers we live by three golden rules when it comes down to Certificates of Insurance:

  1. Service – Accuracy with in verbiage while full filling all required documentation and endorsements.
  2. Cost – At Fairbanks Insurance Brokers, Certificates of Insurance are issued Free of Charge.
  3. Speed Certificates of Insurance are issued within one business day.

*Scheduled endorsement requests from the carrier requiring special wording may take longer depending on complexity and the verbiage required on the forms being requested-

What are my Payment Options?

We at Fairbanks Insurance Brokers have a variety of different payment options to choose from when it comes to purchasing your General Liability Policy.

  1. Full Payment Option Pay the policy premium in full with a “One Lump Sum”. (This option is highly recommended to avoid missing a monthly payment and possible late fees or cancellation)
  2. Direct Bill Option – The carrier will send you a monthly statement until the policy is paid in full. (This option normally requires a small down payment while the balance is divided up over a 8-10 month billing period)
  3. Financing Option – Fairbanks Insurance Brokers will set up monthly payments through a third party finance company. (This is our most popular option which requires a small deposit and flexible monthly payments with NO credit score required for instant approval)

Why choose Fairbanks Insurance Brokers?

At Fairbanks Insurance Brokers, our focus of expertise lies solely within the Construction community. The personal relationships we’ve developed over many years, working with the nation’s best insurance providers, has granted us unprecedented access to the most competitive wholesalers, which allows us to save contractors thousands of dollars annually, resulting in the lowest rates fit for any residential or commercial risk.

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