Is Your Risk Management Program Complete? An important question was recently discussed during a meeting: Does general liability insurance protect me in the event of a structural failure? Unfortunately, some builders think that they are insured for all risks because they have purchased general liability insurance. This assumption could cost builders thousands of dollars if they fail to protect themselves with a complete risk management program.

 

Often misunderstood, general liability insurance protects your business assets from claims for which you are found legally liable. In addition to bodily injury, general liability protects against property damage, advertising and personal injury liability, as well as offering coverage for additional insureds. Liability claims for issues like these can be costly and complex. In the event of a claim, GL insurance will provide defense costs for the insured business. Should a structural failure occur, general liability insurance would become responsible for personal injury, but it does not relieve the builder of damages to the structure. General liability insurance is one of many risk management tools that a builder carries. It also relieves him of responsibility should there be an injury related issue on his jobsite from start to finish. While the builder carries his own general liability policy, he should require that his subcontractors have their own GL insurance policy in place to protect themselves and their employees. General liability tends to be the "reactive" insurance policy.