Protect Your Business with General Liability Insurance in Washington
Part of our guide to general contractors insurance in Washington.
A general contractor in Tacoma recently faced a $250,000 claim after a visitor slipped on a jobsite. Without General Liability Insurance, the contractor had to pay out of pocket. This coverage is crucial for general contractors in Washington, as it covers third-party bodily injury, property damage, and advertising injury claims. You need General Liability to protect your business from financial losses due to accidents or injuries on your jobsites. In Washington, the risk of earthquakes and wildfires adds to the importance of having this coverage. A single claim can be devastating, and General Liability Insurance can help you avoid financial ruin.
General Liability cost for general contractors in Washington
Illustrative monthly general liability estimate for a small general contractor operation in Washington. 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 Washington
General Liability Insurance covers third-party bodily injury, property damage, and advertising injury claims for general contractors in Washington. This means that if a visitor is injured on your jobsite, or if you accidentally damage a client's property, General Liability Insurance can help pay for the resulting claims. For example, if you're working on a construction project in Seattle and a passer-by is hit by a falling object, General Liability Insurance can cover the medical expenses and other damages. 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. You need to understand what General Liability Insurance covers and what it doesn't to ensure you have the right protection for your business.
Do General Contractors in Washington Need General Liability?
General contractors in Washington typically need General Liability Insurance to sign construction contracts with commercial clients or real estate developers. Nearly all commercial clients and real estate developers require general contractors to have at least $1 million in General Liability coverage, often with umbrella coverage, before signing a contract. This is because General Liability Insurance helps protect the client or developer from financial losses due to accidents or injuries on the jobsite. Even if it's not legally required, having General Liability Insurance can give you a competitive edge when bidding on projects, as it demonstrates your commitment to risk management and financial responsibility. Without General Liability Insurance, you may be unable to secure contracts with large clients or developers, which can limit your business growth and revenue. In Washington, the strict labor and employment laws also increase the need for General Liability Insurance, as they can lead to higher damages and legal fees in case of a claim.
A Real General Liability Claim a General Contractor Could Face
A general contractor in Spokane recently faced a $150,000 claim after a client's property was damaged during a construction project. The contractor had accidentally damaged the client's roof, causing water damage and mold growth. General Liability Insurance covered the cost of repairs and other damages, saving the contractor from financial ruin. The claim process was straightforward, with the insurance company paying out the damages quickly and efficiently. If the contractor had not had General Liability Insurance, they would have had to pay the damages out of pocket, which could have put their business at risk. The contractor was able to continue working on the project without interruption, thanks to the financial protection provided by General Liability Insurance.
What General Liability Costs for General Contractors in Washington
The cost of General Liability Insurance for general contractors in Washington can range from $40-$120/month, depending on factors like revenue, payroll, and coverage limits. The cost also depends on the location of your business, with contractors in high-risk areas like Seattle or Tacoma potentially paying more for coverage. Additionally, the cost of General Liability Insurance can be affected by your claims history, with contractors who have a history of claims potentially paying more for coverage. You can lower your premium by increasing your deductible, improving your safety record, or bundling your General Liability Insurance with other policies. It's also important to shop around and compare quotes from different insurance companies to ensure you're getting the best rate for your business.
How to Get General Liability in Washington
To get General Liability Insurance in Washington, 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 are right for your business. It's a good idea to work with an insurance company that has experience working with general contractors in Washington, as they can help you navigate the complex insurance landscape and ensure you're getting the right coverage for your business. In cities like Vancouver, where construction projects are common, it's particularly important to have the right insurance coverage. By bundling your General Liability Insurance with other policies, such as workers' compensation and commercial auto insurance, you can often lower your total premium and get more comprehensive coverage for your business. Get your quote today and ensure you're protected from financial losses due to accidents or injuries on your jobsites.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes, it may. After a claim, your premium may increase, depending on the severity of the claim and your claims history. However, this increase can be mitigated by improving your safety record, increasing your deductible, or bundling your policies.
Can I get a COI same-day for a client?＋
Yes, you can. Many insurance companies offer same-day certificates of insurance, which can be essential for securing contracts with commercial clients or real estate developers. Be sure to ask your insurance company about their COI process and turnaround time to ensure you can get the coverage you need quickly.
Does a sole proprietor need General Liability?＋
Yes, they do. Even as a sole proprietor, you can still be held liable for accidents or injuries on your jobsites, and General Liability Insurance can help protect you from financial losses. In Washington, the strict labor and employment laws also increase the need for General Liability Insurance, even for sole proprietors.
What's not covered by General Liability Insurance?＋
General Liability Insurance does not cover workers' compensation claims, professional liability claims, or damages to your own property. You may need to purchase additional policies, such as workers' compensation or commercial property insurance, to ensure you're fully protected.
Can I cancel my General Liability policy at any time?＋
Yes, you can. However, be aware that canceling your policy may leave you without coverage, and you may be unable to secure contracts with commercial clients or real estate developers. You may also face penalties or fees for canceling your policy early, so be sure to review your policy terms carefully.
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Other coverages general contractors in Washington should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Washington change over time and vary by business. Verify current rules with the Washington Department of Insurance and a licensed agent before purchasing a policy.