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Contractors liability insurance

Contractors liability means if the contractor endorses any work to the workmen and during the working, if any things happen to the worker, it is the liability of contractor to fulfill the damages happened. Hence in order to escape the unforeseen damages, the contractor required to get insurance which called contractor liability insurance. So the contractual liability insurance would protect the contractor from any loss in connection with the work.


In order to escape the contractor has to take the insurance from an insurance company which covers all risks. The liability may arose relating to workmen or relating to material i.e. Workmen, hired equipment, plants, tools, or public liability.


Section 240 and 241 of the New York State Labor law establish that contractors are liable for virtually any gravity related injuries suffered by a worker on a job site. The law says that this liability is "absolute" and that a worker\'s responsibility shall not be considered when determining fault. It does not matter that the employee ignored the company\'s safety policy or directors from a supervisor. The contractor or owner is liable even if the employee is intoxicated, drug induced or in the process of committing a crime when the injury occurred. It is inevitable to the contractual liability insurance to accept the liability when there is damage irrespective of the action of workmen.

Reduction of claims

Mere taking of contractual liability insurance policy is not enough but to reduce the claims is also important, hence the following precaution to be taken to reduce or minimize the liability of contractor.

  • Emphasize safety and communicate the importance of safety to employees
  • Provide proper equipment, safety devices and protective clothing.
  • Train and retrain your employees/workmen in safe procedures and in how to deal with emergencies.
  • Set up a safety committee made up of mangers and workers.
  • Promote employee health by offering wellness and fitness programs
  • Gove employees a safety manual with mission statement, rules and safe work procedures.
  • Conduct regular inspections of the facility to identify and correct hazards such as poor lighting, unsafe storage and ergonomic standards.
  • Develop an effective system of accountability to ensure hazards are remedies.
  • Train people in the correct way to lift
  • Create return to work programs.
  • Stay in close contact with employees who are out with injuries.
  • Award and recognize safe operations.
  • Keep written road safety procedures for those who drive a vehicle for your business.
  • Keep detailed records of all accidents.
  • Include a discussion of the companys safety and health performance as part of board meetings or annual reports.
  • Keep detailed safety records.
  • Investigate the air quality in work spot
  • How to take insurance

    In order to escape the liability, the contractor should contractual liability insurance policy and while taking the same the following documents needed:

  • EFIN State Tax ID number
  • Current Class Codes and Payroll
  • 3 years currently valued loss runs
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