Like any other small business owner, general contractors, sub contractors and independent artisans such as carpenters, painters, plumbers, electricians, landscapers, boiler repair workers and HVAC service technicians need general liability coverage to cover their liability exposures.
This commercial liability insurance is essential for independent artisans and contractors because:
It protects you and your business. Independent artisans and contractors have the same legal obligations and liability exposures as larger businesses. They can be sued and held liable for damaging client property, causing bodily harm, or advertising injury. General liability insurance helps cover legal fees and the damages resulting from a lawsuit. Without insurance, you would have to pay out of pocket to defend yourself in court and to pay for damages.
Your clients want and may require you to have it. Your clients hiring you likely will require you to have general liability insurance before they will sign a contract with you. The reason is that without this insurance, your client could be held responsible for alleged wrongdoing or accidents caused by you or your work. A contractor or business hiring you as a sub contractor or artisan will also often require that they be added as an additional insured for the project to the your insurance policy.
It may be required by law. Certain industries, such as construction, require independent contractors to carry general liability coverage.