Don’t Hire A Contractor Without Liability Insurance

Contractor general liability insurance is designed to safeguard workers and contractors of companies from accidents and mistakes occurring on the job site. If contractors don’t have this kind of insurance, the cost associated with an accident or disaster on the job site can be quite expensive. The accidents can be caused by employees, clients and even by bystanders. This kind of insurance also covers the cost of damage caused by a contractor’s employees.

Contractors are advised to purchase general contractor liability insurance before they start their business or begin working on their first job. Once contractors have signed the agreement with the insurance company, they will have to pay premiums on a regular basis, which can be monthly or yearly. One a contractor has an accident, he will immediately file a claim with the insurance company. The information the contractor has to give is the police reports, hospital treatment, victim’s condition and much more. Once a claim has been submitted, the insurance company will begin the investigation process.

In the investigation process, every aspect of the incident is reviewed by an adjuster. He will ask questions, evaluate the situation, take notes and decide who is right and who is wrong. The insurance company will then use the information collected to make a decision.

There are two situations here. The legal department may find the contractor to be at fault and make payment for all fees incurred. The legal department may find the contractor to be a victim. In this case, the legal department can pay the contractor the money first and then sue the person or party at fault so as to recoup the money. The legal department can also refuse to pay the money or deny the claim.

If a claim is denied, the contractor can appeal the claim decision or take the insurance company to court. However, no one wants this situation to happen because the process can take several years and is very expensive for both parties.

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