As a general contractor you probably oversee, and lead, quite a variety of contractors and specialists. You’ve also probably seen plenty of them leave, or move on to other pursuits which means you may have had to look elsewhere for talented contractors. And when you look elsewhere there’s always a chance that you could end up with a disreputable independent contractor (no matter how careful you are). To protect yourself from the mistakes of your contractors, you may want to consider acquiring contractors protective liability insurance. It could save you a lot of money if you find yourself in a pinch.
Contractors Protective Liability Insurance
Like we said before, contractors protective liability insurance will protect you from any actions (conducted by your contractors or specialists) that results in a liability claim. Without this coverage, that liability claim would fall on you since you are the project leader. And, since the claim lies outside the realm of your commercial general liability policy any fines or litigation associated with that claim will have to be paid by your business. You don’t want that and contractors protective liability insurance will ensure that you are not held responsible for someone else’s actions.
Typically, we see claims on this policy as a result of vicarious liability (which is basically when you are held responsible for the failed actions of one of your employees when they were contractually obligated to complete that action). Think about it like being held responsible for the actions of your children when they make a mistake (except much more expensive). But, contractors protective liability insurance will protect you from all of those costly fees and litigation though there are some limitations. For example, most insurers will require you to purchase additional coverages such as general liability or a business owners policy because this policy does not operate as a stand-alone coverage.