Restoration Coverage Tips: What Does General Liability Insurance Cover?

Restoration Insurance Coverage Tips: What Does General Liability Insurance for Restoration Contractors Cover Anyway?

Suppose you plan to open a restoration firm or have even had one for years. In that case, you may be wondering what general liability for restoration contractors protects you from or why you need it. Most restoration contractors know they must have public liability insurance to step onto a job site. Still, in our years of working with restoration contractors, we have found that very few of them understand where the policy protects them.

This post will provide a fundamental overview of general liability, why it is so essential, and the best way for restoration contractors to obtain public liability insurance.

Disclaimer: Please keep in mind that we provide a broad overview of general liability insurance. Every policy is different, with unique coverages and exclusions. If you have specific questions about your policy or want to get quotes for a new one, we recommend calling our office.

What is General Liability Insurance?

General liability insurance for restoration contractors is usually the primary insurance coverage required to purchase. The policy itself is designed to protect your restoration company from "bodily injury" or "property damage" for which you, your company, or another "insured person" is liable. A basic policy will provide $1,000,000 in coverage for each occurrence (claim) and a $2,000,000 aggregate.

The most common general liability insurance claims for restoration contractors are related to property damage caused by faulty work. These are usually punctured gas or water lines or completed work that later causes damage to other property. (It's important to note that a general liability insurance policy isn't a warranty policy. It will not pay for your faulty work, but rather the damage your work causes to others.)

What is the Cost of General Liability Insurance for Restoration Contractors?

The cost of general liability insurance for restoration contractors varies dramatically from company to company. Public liability insurance premiums are usually based upon the restoration company's estimated revenue, payroll, and subcontractor costs. Additionally, your insurance premium will be affected by contractual obligations that require additional coverages and unique endorsements.

Typical general liability insurance for restoration contractors will start at $2,500 annually. This amount, though, can vary dramatically depending upon the state.

Why Work with American Restoration Insurance?

ARI Brokers specialize in providing insurance for restoration contractors. In addition to general liability insurance, we have created a complete insurance program that provides ALL of the insurance coverages necessary for restoration contractors. Because our program is unique to restoration contractors, we have specialized premiums that will ensure you have the best premiums available on the market.

If you would like to receive an insurance quote for your restoration company, please feel free to contact our office. Our friendly, knowledgeable staff can help guide you through the entire quoting process.