While California doesn’t require businesses to carry general liability (GL) insurance, businesses that do carry general liability insurance are demonstrating their commitment to responsible service. As a consumer, you may not know much about GL insurance since it’s not really for consumers at all. This type of insurance is designed for businesses to protect them from the risks of liabilities—such as injuries and property damage—as a result of their operations.
As liability insurance is designed to offer specific protection against third party insurance claims, payments are usually not made to the insured, but to the entities who aren’t connected to the insurance contract and have suffered losses. Insurance systems, like liability insurance and workers’ compensation, can prevent businesses from going bankrupt when faced with claims.
In America, general liability insurance coverage mainly appears in the Commercial General Liability policies obtained by businesses. According to the American Bar Association, a typical Commercial General Liability (CGL) plan covers four major parts: property damage, physical injury, advertising injury, and personal injury. For their safety, homeowners who want to hire Sacramento roofing contractors to repair, re-roof, or install new roofing on their homes should ensure that their contractors carry both general liability and workers’ compensation insurance.
While the cost of physical injuries can be exorbitant, GL insurance is often more concerned with property damage than with physical injuries, as the latter is usually covered by workers’ compensation insurance. If a roofer doesn’t carry GL insurance, the Contractors State License Board (CSLB) says you deserve an explanation as to how damages will be settled in the future. This must be stated in writing, and should be included in the contract.
Should the contractor decide to be self-insured, he’ll be required to produce a Certification of Self-Insurance. This must be filed with the CSLB and has to appear in his license. Otherwise, look for professional Sacramento roofing contractors, such as Yancey Home Improvements, that carry both workers’ compensation and GL insurance.
(Article Information and Image from Commercial General Liability Insurance; American Bar Association)