What Is General Liability Insurance?
Commercial general liability insurance is a policy that covers the costs of bodily injury, property damage, and advertising claims damage made against your business. It can help you pay for related medical costs, damages, and even legal fees. This type of insurance is designed for businesses like those in the construction industry, where workers face high risks of accidents and injuries.
General liability insurance typically falls under one of many construction insurance forms that protect your business’s many stakeholders, whether contractors or carpenters or customers. Also known as contractors’ insurance, this type of policy offers liability coverage for customer injuries, property damage, libel, slander, and other similar risks that may arise within your business.
Why Do I need Liability Insurance in Massachusetts?
Contractor general liability insurance isn’t required. However, proof of liability insurance is often part of the contractors’ qualification process when bidding on a contract. Additionally, it’s a great way for any business to avoid significant financial loss in the event of a lawsuit. When it comes to contractors’ work, you never know when accidents or injuries may occur, so it will be beneficial, in the long run, to err on the side of caution.
Due to the nature of the construction industry, general liability insurance in MA is essential to keep you protected from financial burdens that may occur due to accidents or other issues and ensure that your assets remain safe on site. All in all, this insurance policy gives you assurance and peace of mind that your valuable possessions and employees are well-protected in case of any unforeseen circumstances.
Who Needs Liability Insurance in MA?
All business owners can benefit from purchasing a general liability insurance policy to protect you from potential liability claims. It often comes with property coverage when you get a Business Owner Policy (BOP) since all businesses are vulnerable to risk in one way or another. Regardless of whether you operate a small or large business, liability insurance in MA will prove to be useful to protect all your assets.
Some situations require contractors to carry general liability insurance. You must have general liability insurance to obtain some professional licenses (like a general contractor license), bid on certain jobs (especially government contracts), and lease commercial property.
Regarding the question of does Massachusetts require a contractor license, the answer is yes. If you want to work as a contractor, you will need to be properly licensed. Thus, you will need to get liability insurance to get your license.
Though general liability insurance is not mandated by law, save for some industries, you may be required to have it in some instances. For example, if you are taking out a loan, your mortgage lender may ask for this safety precaution. Similarly, if you were to rent a place to stay in, you may need to get liability insurance to reassure your landlord.
General Liability Insurance Coverage Details
Many contractors face a high amount of liability risks at the worksite, including worker injury and property damage. Personal injury, advertising injury, and completed products can also carry dangers of liability claims. Contractor general liability insurance protects you from these risks.
The policy provides coverage for bodily injury and property damage in the event the insured is legally responsible.
Bodily injury claims refer to incidents where third-parties may sustain injuries from accidents that happen within your business premises or where your employees may be working. It also includes slip and fall accidents that customers may suffer from but does not include cases where employees suffer injuries. A different type of insurance policy covers this claim.
Liability insurance in Massachusetts policy also offers property damage coverage, which covers incidents where your business may damage third parties’ properties. Some policies may also offer coverage for product claims, which refer to damages, injuries, or inconveniences caused by your products or services.
General liability also provides coverage for liability arising from personal injury and advertising injury, medical expenses, accidents occurring on the premises or away from the premises and products, or completed operations. Also, coverage includes defense costs.
Personal Injury or Advertising Injury
This coverage is designed for injuries other than bodily harm, including false arrest, malicious prosecution, invasion of privacy, and reputation damage. Advertising injury refers to harm caused by an advertisement such as libel or slander.
Products and Completed Operation Injury
When damages occur related to items manufactured, sold, or distributed by your business, this policy provides coverage for the accumulated costs. It also provides coverage for completed operations. This work is completed, built, installed, or distributed for the intended use.
This provides coverage for medical expenses related to a bodily injury that occurred on the premises owned or rented by your business. It also covers injuries related to your business operations. No party is liable for the medical claim payment.
Fire Damage Limit
This provides coverage for fire damages to rental premises due to the negligence of the insured.
Liquor liability is important for any business involved in alcoholic beverage manufacturing, sales, or distribution. It provides coverage if bodily injury or property damage is caused by an individual you’re legally responsible for contributing to the intoxication.
Additional charges include furnishing alcoholic beverages to a person under the legal drinking age or under the influence of alcohol and violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages.
Get Massachusetts General Liability Quotes
A contractor general liability insurance coverage policy does not come at a set price. As with other insurance policies, this type’s cost will vary based on many factors, with one important factor being the amount of risk associated with your business or job. Prices can range so volatilely that Massachusetts’ small business may between $300 to $5,000 annually.
For most businesses, liability insurance with $1 million or $2 million will generally suffice. However, this works on a case-to-case basis as it ultimately depends on the nature of your business, the number of employees you have, your location, coverage limits, and such. That said, you should generally be able to find adequate liability insurance with premiums costing less than $1,000 annually.
If you are interested in Massachusetts liability insurance for contractors, you can start by requesting a business quote. After filling in a few details to gauge the type of policy that you need, our agents will contact you to help you find the most suitable option. Rest assured, our team is available to tend to your queries 24/7 to provide you with instant insurance quotes.
Why Choose General Liability LoPriore for Massachusetts GL Insurance?
Get in touch with any of our independent insurance agents here in LoPriore today. We can assure you that our agents are experienced and knowledgeable with all of our insurance partners and can answer any questions or queries you may have. Here at LoPriore, we put value in helping each of our clients find the right insurance policy to suit their needs and budget requirements.
Take charge of your business now by getting liability insurance to protect you and your assets. Our team can offer you various options and compare quotes from different providers, allowing you to find the best policy. Rest assured, we will work with you to help you determine the most suitable policy.
At LoPriore, we take pride in delivering quality customer service and quick insurance quotes. We know that the process can be tedious, so we want to eliminate the stress and hassle involved in selecting an insurance policy. Allow us to do the shopping for you, so you need not have to look for several providers to compare rates and offers.