What does liability insurance cover if you’re not at fault?
If the accident isn’t your fault and you live in a state with tort insurance laws, the other driver’s liability insurance should cover any damage to your car and your medical expenses.
If the other driver is at fault, their property damage liability insurance may help cover the costs..
Does my general liability policy cover independent contractors?
General liability insurance generally does not protect independent contractors or subcontractors. This means your insurance likely does not cover independent contractor mistakes or protect your customers from them. It also likely does not cover accidents or other damage they cause.
What does general liability cover for a contractor?
Contractors General Liability Insurance protects contractors financially from amounts they become obligated to pay due to damages or medical payments because of bodily injury, property damage or personal/advertising injury to third parties occurring during the policy period caused by or relating to the contractor’s …
Is general contractor liable for subcontractor?
(The general contractor is often referred to as a “principal” and the subcontractor as an “independent contractor.”) A general contractor is not ordinarily liable for the negligence of an independent contractor such as a subcontractor.
Do I need liability insurance as an independent contractor?
General liability insurance is essential for independent contractors because: It protects you and your business. Independent contractors have the same legal obligations and liability exposures as larger firms. They can be sued for damaging client property, causing bodily harm, or advertising injury.
What is the average cost of professional liability insurance?
$59 per monthRegardless of policy limits, the median cost of professional liability insurance is $59 per month ($713 annually). The median cost offers a more accurate estimate of what your business is likely to pay than the average cost of business insurance because it excludes outlier high and low premiums.
How much is general liability insurance for a contractor?
General liability insurance costs for general contractors General contractors pay a median premium of about $90 per month, or $1,090 per year, for general liability insurance. This policy provides protection against third-party injuries, third-party property damage, and advertising injuries.
Does general liability cover lawsuits?
General liability insurance covers common lawsuits that arise from everyday business activities. It protects against customer injuries, damaged customer property, and accusations of defamation and copyright infringement.
How is general liability insurance calculated for contractors?
1 Answer. General Contractor’s insurance is based on the total risks of a job. It covers the job site, materials, and calculated potential for losses. … Your business liability is not based on what you pay contractors.
What is the minimum amount of general liability insurance the contractor must carry?
General Liability Insurance (CGL): $1,000,000 each occurrence (combined single limit for bodily injury and property damage); $1,000,000 for personal and advertising injury liability; $1,000,000 aggregate on products and completed operations; $2,000,000 general aggregate.
How much does a 1 million dollar business insurance policy cost?
General liability insurance is surprisingly affordable. Most policies cost less than $1,000 per year. A $1 million policy costs $300 to $1,000 per year. While, $2 million worth of coverage will cost an average of $500 to $1,300.
Does general liability cover poor workmanship?
The coverage for contractors’ mandatory general liability insurance excludes poor workmanship. … Your homeowners insurance doesn’t cover it either. Bad workmanship isn’t covered under any policy you or your contractor is likely to have.