Liabilities Faced By Artisan Contractors
Artisan contractors, including HVAC, Power, and Plumbing professionals, face numerous risks on the job every single day. In order to protect the business, it is highly recommended (and in some states it’s a law) that artisan contractors carry commercial general liability coverage at minimum.
Commercial General Liability Coverage protects a business against accidents and injury that might occur on its premises, as well as exposures related to its product. The standard GL policy covers certain lawsuits against a contractor alleging that the contractor’s negligence has resulted in “bodily injury“, “property damage,” and “personal / advertising injury” to someone else. Lawsuits such as this can arise out of injuries sustained while the construction is ongoing, or even many years after the job is completed.
The types of claims that can be brought against a contractor are limited only by the imagination. However, some typical examples include:
- Heat from welding on an upper floor causes sprinkler system on the floor below it to go off, flooding the customer’s property.
- Ancillary damage created as a result of construction, such as when a worker severs a gas line while repairing an adjacent line.
- A refrigeration contractor cuts off power to the wrong units during a repair call, causing spoilage of food.
- A faulty gas line installation results in a fire that can damage the house and in worse cases cause injuries to the customer.
In spite of the most stringent precautions, accidents do happen, and a wise contractor looks to buffer himself – and his business – against claims that might be brought against him.
Once again, it is recommended that artisan contractors have all lines coverage; but in the very least, commercial general liability coverage should be owned by all contractors to keep the business protected should a claim arise.
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