Protect Your General Contracting Business with General Liability Insurance in North Carolina
Part of our guide to general contractors insurance in North Carolina.
General Liability Insurance covers third-party bodily injury, property damage, and advertising injury claims, but it does not cover workers' compensation or professional liability claims. In North Carolina, general contractors need to understand what this coverage does and does not cover. General Liability is the foundational policy nearly every small business needs, including general contractors in North Carolina. It covers claims from third parties, such as clients, visitors, or passers-by, who suffer bodily injury or property damage due to your business's operations. This coverage is crucial in North Carolina, where hurricane and tropical storm risk along the coast, with flooding extending well inland, and tornado risk in the Piedmont and eastern regions during spring storm season, can lead to unexpected accidents and damages.
General Liability cost for general contractors in North Carolina
Illustrative monthly general liability estimate for a small general contractor operation in North Carolina. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What General Liability Covers for General Contractors in North Carolina
General Liability Insurance pays for third-party bodily injury, property damage, and advertising injury claims. For example, if a client slips and falls on your job site in Raleigh, General Liability would cover their medical expenses and any resulting lawsuits. Similarly, if your advertising inadvertently infringes on a competitor's copyright in Charlotte, General Liability would cover the costs of defending against the claim. However, it does not cover workers' compensation claims, which are covered by a separate policy. It also does not cover professional liability claims, such as those related to design or construction errors, which are covered by an errors and omissions policy. You need to understand what General Liability covers and what it does not to ensure you have the right protection for your business. In North Carolina, general contractors need to be aware of the specific risks and hazards associated with their work, such as the risk of accidents on job sites or the risk of damage to client property. By understanding what General Liability covers, you can ensure you have the right protection in place to mitigate these risks.
Do General Contractors in North Carolina Need General Liability?
Nearly every commercial client, real estate developer, and lender in North Carolina requires general contractors to carry at least $1 million in General Liability insurance, often with umbrella coverage, as a condition of signing any construction contract. This is because General Liability protects not only your business but also your clients and partners from potential risks and hazards. In North Carolina, the risk of accidents and damages is higher due to the state's hurricane and tropical storm risk along the coast, with flooding extending well inland, and tornado risk in the Piedmont and eastern regions during spring storm season. Without General Liability, you may be unable to secure contracts or work with large clients, which can significantly impact your business's growth and revenue. Furthermore, if you are found liable for a third-party claim, you may be required to pay out of pocket, which can be financially devastating. By having General Liability in place, you can protect your business and ensure you can continue to operate even in the event of a claim. In addition, General Liability can also help you to protect your business's reputation and avoid costly lawsuits.
A Real General Liability Claim a General Contractor Could Face
John, a general contractor in Greensboro, was working on a construction project when one of his employees accidentally damaged a neighboring building. The neighboring building's owner sued John's company for $200,000 in damages. John's General Liability insurance covered the cost of the damages, as well as the legal fees associated with defending against the claim. In total, the insurance paid out $250,000, which included the cost of repairs, legal fees, and other expenses. Without General Liability, John's company would have been responsible for paying this amount out of pocket, which could have been financially devastating. By having this coverage, John was able to protect his business and ensure he could continue to operate even in the event of a claim. The claim was handled efficiently, and John's business was able to recover quickly. The insurance company worked closely with John to resolve the claim and minimize the impact on his business.
What General Liability Costs for General Contractors in North Carolina
The estimated premium for General Liability Insurance in North Carolina ranges from $40-$110/month, although this can vary depending on several factors, including your business's revenue, payroll, coverage limits, deductible, and claims history. For example, if you have a higher revenue or payroll, your premium may be higher. Additionally, if you have a history of claims, your premium may also be higher. In North Carolina, the cost of General Liability can also be affected by the state's risk environment, including the risk of hurricanes and tornadoes. By understanding these factors, you can better estimate the cost of General Liability for your business and ensure you have the right coverage in place. It's also important to note that the cost of General Liability can vary depending on the insurance company and the specific policy you choose. By shopping around and comparing quotes, you can find the best rate for your business. You can also work with an insurance agent to determine the best coverage limits and deductible for your business, which can help to lower your premium.
How to Get General Liability in North Carolina
To get General Liability Insurance in North Carolina, you'll need to gather some information about your business, including your revenue, payroll, and coverage limits. You'll also need to determine your deductible and any other policy details. It's a good idea to work with an insurance agent who is familiar with the general contracting industry in North Carolina and can help you navigate the process. They can help you compare quotes from different insurance companies and ensure you have the right coverage in place. In cities like Durham and Charlotte, it's especially important to have the right insurance coverage due to the high volume of construction projects and the associated risks. To get started, gather your business's financial information and contact an insurance agent to discuss your options and compare General Liability quotes.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes, it may increase. The amount of the increase will depend on the severity of the claim and your claims history. If you have a history of claims, your premium may increase more significantly. However, if you have a single claim that is not severe, the increase may be minimal. It's also worth noting that some insurance companies offer claims-free discounts, which can help to lower your premium if you do not have any claims. You should discuss your specific situation with your insurance agent to determine the potential impact on your premium.
Can I get a COI same-day for a client?＋
Yes, it is possible to get a certificate of insurance (COI) same-day. Many insurance companies offer online platforms that allow you to generate a COI immediately. However, this may depend on the specific insurance company and policy you have. It's best to check with your insurance agent or company to determine their process for generating a COI. Some companies may require a few hours or days to generate a COI, while others may be able to provide it immediately. You should plan ahead and request a COI as soon as possible to ensure you can meet your client's requirements.
Does a sole proprietor need General Liability?＋
Yes, a sole proprietor should consider General Liability Insurance. As a sole proprietor, you are personally responsible for any business-related liabilities, which can put your personal assets at risk. General Liability can help protect your business and personal assets from third-party claims. Even if you are a small business or sole proprietor, you can still be held liable for accidents or damages, and General Liability can provide the necessary protection. It's also worth noting that many clients and partners may require you to have General Liability Insurance, even if you are a sole proprietor. You should discuss your specific situation with an insurance agent to determine the best coverage for your business.
What is not covered by General Liability?＋
General Liability does not cover workers' compensation claims, professional liability claims, or intentional acts. Workers' compensation claims are covered by a separate policy, while professional liability claims, such as those related to design or construction errors, are covered by an errors and omissions policy. Intentional acts, such as intentional damage to property, are not covered by General Liability. You should understand what is not covered by General Liability to ensure you have the right coverage in place for your business. It's also important to note that General Liability may not cover all types of advertising injuries, such as those related to social media or online advertising. You should discuss your specific situation with an insurance agent to determine the best coverage for your business.
Can I cancel my General Liability policy at any time?＋
Yes, you can cancel your General Liability policy, but you may be subject to a penalty or fee. The specific terms of cancellation will depend on your policy and insurance company. Some companies may allow you to cancel at any time, while others may require a minimum notice period. You should review your policy carefully and discuss your options with your insurance agent before canceling. It's also worth noting that canceling your General Liability policy may leave your business unprotected from third-party claims, which can be financially devastating. You should carefully consider your options before canceling your policy.
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Other coverages general contractors in North Carolina should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in North Carolina change over time and vary by business. Verify current rules with the North Carolina Department of Insurance and a licensed agent before purchasing a policy.