Protect Your Virginia Construction Business with General Liability Insurance
Part of our guide to general contractors insurance in Virginia.
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 Virginia, general contractors need to understand what this coverage does and does not cover. For instance, if an employee gets injured on the job, workers' compensation would cover it, not General Liability. However, if a client slips and falls on your construction site, General Liability would cover the claim. General Liability is a foundational policy that nearly every small business needs, including general contractors in Virginia.
General Liability cost for general contractors in Virginia
Illustrative monthly general liability estimate for a small general contractor operation in Virginia. 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 Virginia
General Liability Insurance for general contractors in Virginia covers third-party bodily injury, property damage, and advertising injury claims. This means that if a client or visitor is injured on your construction site, or if you accidentally damage a client's property, General Liability Insurance will cover the claim. For example, if you're working on a construction site in Richmond and a passer-by is hit by a falling object, General Liability Insurance will cover the medical expenses and any resulting lawsuits. On the other hand, General Liability Insurance 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 engineering errors, which are covered by a professional liability policy. Understanding what General Liability covers and does not cover is crucial for general contractors in Virginia to ensure they have the right protection for their business.
Do General Contractors in Virginia Need General Liability?
While General Liability Insurance is not legally required for general contractors in Virginia, it is often contractually required by clients, landlords, and contractors. Nearly every commercial client, real estate developer, and lender in Virginia requires general contractors to carry at least $1 million in general liability and workers' compensation insurance as a condition of signing a construction contract. This means that without General Liability Insurance, you may not be able to bid on or sign contracts for many projects. Additionally, General Liability Insurance can help protect your business from costly lawsuits and financial losses due to third-party claims. In Virginia's competitive construction market, having General Liability Insurance can give you a competitive edge and help you build trust with clients and partners. Without it, you may be putting your business at risk and limiting your opportunities for growth and success.
A Real General Liability Claim a General Contractor Could Face
A general contractor in Virginia Beach was working on a construction site when a visitor slipped and fell on a patch of ice, suffering a broken ankle. The visitor sued the general contractor for $200,000 in medical expenses and lost wages. Fortunately, the general contractor had General Liability Insurance, which covered the claim and paid out $180,000 to settle the lawsuit. The general contractor was able to avoid a costly lawsuit and financial loss, and was able to continue working on the project without interruption.
What General Liability Costs for General Contractors in Virginia
The cost of General Liability Insurance for general contractors in Virginia can vary depending on several factors, including revenue, payroll, coverage limits, and deductible. On average, general contractors in Virginia can expect to pay between $40 and $110 per month for General Liability Insurance. However, this cost can be higher or lower depending on the specific factors of your business. For example, if you have a high-revenue construction business with a large payroll, your General Liability premiums may be higher. On the other hand, if you have a small, low-risk construction business, your premiums may be lower. Additionally, the cost of General Liability Insurance can be affected by the location of your business, with areas prone to natural disasters such as hurricanes and flooding tend to have higher premiums. By understanding the factors that affect the cost of General Liability Insurance, you can take steps to lower your premiums and get the best value for your business.
How to Get General Liability in Virginia
To get General Liability Insurance in Virginia, you'll need to gather some information about your business, including your revenue, payroll, and coverage limits. You'll also need to decide on a deductible and coverage limits that make sense for your business. It's a good idea to shop around and compare quotes from different insurance providers to find the best value for your business. You can also consider bundling your General Liability Insurance with other policies, such as workers' compensation and commercial auto insurance, to lower your overall premium. In cities like Norfolk and Chesapeake, general contractors can find insurance providers that offer competitive rates and customized coverage options. By taking the time to research and compare options, you can find the right General Liability Insurance for your business and get a quote today.
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 frequent or costly claims, your premiums may increase more significantly. However, many insurance providers offer claims-free discounts or other incentives to help keep your premiums low.
Can I get a COI same-day for a client?＋
Yes, many insurance providers offer same-day COIs. However, this may depend on the complexity of your policy and the speed of your insurance provider's processing times. It's best to check with your insurance provider in advance to confirm their COI processing times and ensure you can get the certificate you need quickly. Some insurance providers may also offer online COI requests or other streamlined processes to help you get the documents you need faster.
Does a sole proprietor need General Liability?＋
Yes, even sole proprietors need General Liability Insurance. As a sole proprietor, you are personally responsible for any business-related liabilities, which means your personal assets are at risk in the event of a claim. General Liability Insurance can help protect your personal assets and provide financial protection in the event of a claim. Additionally, many clients and contractors require sole proprietors to have 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, professional liability claims, or intentional acts. It also does not cover damages or losses caused by pollution, asbestos, or other environmental hazards. If you need coverage for these types of risks, you may need to purchase additional policies or endorsements.
Can I cancel my General Liability policy at any time?＋
Yes, you can typically cancel your General Liability policy at any time. However, you may be subject to a cancellation fee or penalty, depending on the terms of your policy. You should also consider the potential risks and consequences of canceling your policy, as you may be leaving your business unprotected in the event of a claim.
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Other coverages general contractors in Virginia should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Virginia change over time and vary by business. Verify current rules with the Virginia Department of Insurance and a licensed agent before purchasing a policy.