March 8, 2019
Sean Mulhern

7 Ways for Contractors to Avoid General Liability Lawsuits

Here’s how to keep those premiums low and avoid having to file a claim at all.

Sometimes for contractors, it can seem like no matter how vigilant they are on the job site, lawsuits and claims keep arising.

While a robust umbrella insurance policy will ensure that contractors are protected in the event of a lawsuit, it is always better to avoid having to file in the first place in order to keep insurance premiums at a minimum.

When it comes to construction work, a little extra precaution can go a long way. Here’s how to keep those premiums low and avoid having to file a claim at all.

1. Carefully Secure the Work Area

One of the best ways to prevent third-party injury is to make sure that every job site is properly secured so that nobody who isn’t supposed to be there can’t get onto the site in the first place.

2. Look for Manufacturer Defects

Taking the time to carefully inspect any building materials before they are used or installed on a job site can help prevent a claim for improper installation or defective material.

3. Make It a Priority to Test Pipes

Water damage is one of the main causes of construction related lawsuits, and in order to prevent accidentally flooding any nearby property, be sure to make it a policy to carefully map out and test pipe and water systems well before a project gets fully underway.

4. Pay Special Attention to Entrances and Exits

Entrance and exit ways are always condensed high traffic areas, and this means these areas are more likely to be the site of a slip-and-fall or any other accidental injury.

Make it a priority to keep any throughway free of clutter, debris, or spills that could cause somebody to get hurt, and be sure that exits are all clearly marked and free from obstruction in case of fire.

5. Take the Time to Do the Job Right

In general, it becomes much easier for people to make mistakes when they are in a hurry, distracted and feeling rushed, and contracting work is definitely no exception.

This means that it’s always better to take the time needed to do the job properly rather than rush employees into shoddy work that could backfire as a lawsuit.

6. Encourage Feedback from Employees

Employees on the front line often have a very different perspective on safety than management or owners.

A smart way to make a job site as safe as possible is to encourage employees’ input when it comes to suggestions for improvement that they may have. This type of policy will also go a long way toward preventing the types of misunderstandings that can lead to employee-employer lawsuits.

7. Always Maintain an Open Dialogue with Clients

When clients feel heard, they are much less likely to take legal action if they feel that it is possible to address any issue that may come up through open communication and dialogue. This is why it is important to you make sure you can be easily reached before, during and after the job is finished.

If you are a contractor and wants to learn more about how to get the best premiums and the highest quality policy available, come check us out at The Business Protection Team.

We don’t believe in one size fits all coverage, and this is why we offer tailored policies designed to suit your needs and your business, with easy solutions for online policy management and year-end audit support. Come find out more here.

Sean Mulhern
Commercial Insurance Broker