Liability Insurance
Many contractors are legally required to disclose to homeowners, in writing, whether or not they carry General Liability Insurance. If the contractor does carry General Liability Coverage he is then required to provide the name and phone number of his insurance company to the homeowner. Any time you, the contractor, do a job for someone there is a chance that you could be sued, whether you are legally liable or not. A General Liability Policy typically obligates the insurance company to defend the insured against all allegations that, if true, would be covered by the policy. The policy also obligates the insurance company to pay damages, up to the policy limit, for which the insured is legally liable.
Premises Liability Exposure
The premises liability exposure is present whenever there is ownership or use of property. The responsibility imposed on the owner, landlord, tenant, or occupant is that the property must be maintained in a way that would be expected of a reasonable person. For example, a reasonable person would not leave frayed or unwrapped electrical cords lying around where someone could potentially come into contact with them and electrocute themselves.
Operations Liability Exposure
The operations liability exposure is usually associated with processors, manufacturers, and contractors, and relates to activity in addition to the occupancy of property. For example, if a contractor is working on a public building and a member of the public is injured because of negligent construction activity, the contractor will be held legally liable for the injury.
Products Liability Exposure
The products liability exposure deals with the possibility that a product manufactured, sold, or distributed by an organization might injure a member of the public. For example, if a contractor is injured because of a defective utility knife the company that manufactured and sold that utility knife could be held legally liable.
