In most instances, the following claims are excluded on the general liability policy for restoration contractors:
- Damage to your property.
- Employee injuries.
- Employment disputes.
- Damage to your vehicles.
- Professional mistakes.
1. Damage to Your Property
Your employees are working late to finish a project, and a storm begins to brew outside. As they try and hurry through final touches, high winds throw a piece of debris straight through the window destroying their work.
Don’t turn to your General Liability Insurance to cover the property damage. It only covers third-party property damage. In other words, it can cover the costs when you or your employees damage someone else’s property.
To cover your personal business property (including the front window, tools, and inventory), you need Commercial Property Insurance. This policy can help repair or replace your property when it’s damaged by fire, theft, and some weather-related events.
2. Employee Injuries
Your employee slips on a job site during cleanup. Does General Liability cover it?
Nope, you’ll need Workers’ Compensation Insurance to pay for his medical expenses, physical therapy, and some lost wages. General Liability Insurance can only cover non-employee bodily injuries.
Though your policy doesn’t cover your employee’s injury, it usually covers the injuries they cause to other parties.
3. Employment Disputes
An employee repeatedly doesn’t show up for work, argues with supervisors, and performs poor work. You talk to him about the tardiness and no-shows and dock his pay for the unworked shifts. In response, he quits.
A few weeks later, your former employee sues you over discrimination. He says you wrongfully disciplined him and caused emotional distress. Employment Practices Liability Insurance can help cover your small business here, but General Liability won’t cut it.
4. Damage to Your Vehicles
Business is good for your restoration company, so you purchase a vehicle to transport employees and equipment to job sites. If your new truck gets into an accident, will your General Liability Insurance cover the cost of repairs?
And you can’t rely on your personal auto insurance either. It typically doesn’t cover business driving. Long story short, it’s time to invest in Commercial Auto Insurance.
5. Professional Mistakes
You finish cleanup and rebuild for a customer’s kitchen. Things look great, but some months later the owner reveals that the work, though according to plan, does not meet city and state codes. The work has to be redone.
In this scenario, only Professional Liability Insurance can cover lawsuits over professional mistakes.