Why General Liability Insurance Matters for South Carolina General Contractors
Part of our guide to general contractors insurance in South Carolina.
Experienced general contractor owners in South Carolina understand the importance of General Liability insurance in protecting their businesses from costly third-party claims. This foundational policy covers bodily injury, property damage, and advertising injury claims, making it a necessity for any general contracting business. In South Carolina, general contractors face unique risks, including hurricane and tropical storm damage along the coast and widespread flooding statewide. General Liability insurance provides vital protection against these risks. With most commercial clients requiring at least $1 million in General Liability coverage, it's clear that this insurance is not just a good idea, but a requirement for success.
General Liability cost for general contractors in South Carolina
Illustrative monthly general liability estimate for a small general contractor operation in South 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 South Carolina
General Liability insurance for general contractors in South Carolina covers third-party bodily injury, property damage, and advertising injury claims. This means that if a client or visitor is injured on the job site, or if a general contractor's advertising accidentally infringes on another company's trademark, General Liability insurance will pay for the resulting damages. However, it does not cover workers' compensation claims, which are handled by a separate policy. For example, if a general contractor in Mount Pleasant accidentally damages a client's property during a renovation, General Liability insurance will cover the cost of repairs. On the other hand, if a general contractor's employee is injured on the job, workers' compensation insurance will cover the employee's medical expenses and lost wages.
Do General Contractors in South Carolina Need General Liability?
While General Liability insurance is not legally required for general contractors in South Carolina, it is often contractually required by commercial clients and lenders. Nearly every commercial client, real estate developer, and lender in South Carolina requires general contractors to carry at least $1 million in General Liability insurance, often with umbrella coverage, as a condition of signing a construction contract. Without General Liability insurance, a general contractor may be unable to secure contracts or work with large clients, which can significantly limit their business opportunities. Furthermore, if a general contractor is found liable for a third-party claim, they may be personally responsible for paying the resulting damages, which can be financially devastating.
A Real General Liability Claim a General Contractor Could Face
A general contractor in North Charleston was hired to renovate a commercial building. During the renovation, a passer-by was injured by a falling object from the construction site. The general contractor was found liable for the injury and was required to pay $200,000 in damages. Fortunately, the general contractor had General Liability insurance, which covered the cost of the damages. If the general contractor had not had General Liability insurance, they would have been personally responsible for paying the $200,000, which could have put them out of business. The claim was handled efficiently, and the general contractor was able to continue working on the project without significant interruption.
What General Liability Costs for General Contractors in South Carolina
The cost of General Liability insurance for general contractors in South Carolina can vary depending on factors like revenue, payroll, coverage limits, deductible, and claims history. On average, general contractors in South Carolina can expect to pay between $40 and $110 per month for General Liability insurance. The cost may be higher for general contractors who work in high-risk areas, such as coastal regions prone to hurricane damage. However, general contractors can lower their premiums by maintaining a good claims history, increasing their deductible, and bundling their General Liability insurance with other policies. For example, a general contractor in Columbia with a low claims history and high deductible may be able to secure a lower premium than a general contractor in Charleston with a high claims history and low deductible.
How to Get General Liability in South Carolina
To get General Liability insurance in South Carolina, general contractors should gather information about their business, including revenue, payroll, and coverage limits. They should also research different insurance providers and compare quotes to find the best rate. It's a good idea to work with an insurance agent who has experience working with general contractors in South Carolina. General contractors in cities like Charleston and Mount Pleasant can benefit from bundling their General Liability insurance with other policies, such as workers' compensation and commercial auto insurance, to lower their overall premium. By bundling their policies, general contractors can save money and simplify their insurance management. Get your quote today and protect your business from costly third-party claims.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes. After a claim, your premium may increase. However, the amount of the increase will depend on the severity of the claim and your overall claims history. If you have a good claims history otherwise, the increase may be minimal. Additionally, some insurance providers offer claims forgiveness or other programs that can help minimize the impact of a single claim on your premium.
Can I get a COI same-day for a client?＋
Yes. Many insurance providers offer same-day COI issuance for general contractors in South Carolina. This can be especially helpful for general contractors who need to provide proof of insurance to clients quickly. However, same-day COI issuance may require additional documentation or fees, so it's a good idea to check with your insurance provider in advance to confirm their policies and procedures.
Does a sole proprietor need General Liability?＋
Yes. Even sole proprietors need General Liability insurance to protect themselves from third-party claims. As a sole proprietor, you are personally responsible for any damages or injuries caused by your business, so having General Liability insurance can help protect your personal assets. Additionally, many commercial clients and lenders require sole proprietors to carry General Liability insurance as a condition of working with them.
What's not covered by General Liability?＋
General Liability insurance does not cover workers' compensation claims, which are handled by a separate policy. It also does not cover professional errors or omissions, which are typically covered by a professional liability policy. Additionally, General Liability insurance may not cover damages or injuries caused by intentional acts or criminal activity. It's a good idea to review your policy carefully to understand what is and is not covered.
Can I cancel my General Liability policy at any time?＋
Yes. You can typically cancel your General Liability policy at any time, but you may be subject to a cancellation fee or penalty. It's a good idea to review your policy carefully to understand the terms and conditions of cancellation. Additionally, if you cancel your policy, you may be leaving yourself and your business vulnerable to third-party claims, so it's a good idea to have a new policy in place before canceling your current one.
Do I need to have a certain amount of General Liability coverage?＋
Yes. Many commercial clients and lenders in South Carolina require general contractors to carry at least $1 million in General Liability insurance. However, the amount of coverage you need may depend on the size and scope of your business, as well as the type of work you do. It's a good idea to work with an insurance agent who can help you determine the right amount of coverage for your business.
Can I get General Liability insurance if I have a high-risk business?＋
Yes. Even if you have a high-risk business, you can still get General Liability insurance. However, your premium may be higher due to the increased risk. It's a good idea to work with an insurance agent who has experience working with high-risk businesses to find the best rate and coverage for your business. Additionally, you may be able to lower your premium by implementing safety measures or other risk-reducing strategies.
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Other coverages general contractors in South Carolina should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in South Carolina change over time and vary by business. Verify current rules with the South Carolina Department of Insurance and a licensed agent before purchasing a policy.