Does general liability insurance protect contractors from claims made by third parties not employed by them?

General liability insurance typically provides coverage for contractors against claims made by third parties who are not employed by them. This includes situations where a third party may suffer bodily injury or property damage as a result of the contractor's work. The insurance is designed to cover legal costs, settlements, and judgments that may arise from such claims, offering financial protection to the contractor.

This type of insurance is crucial in the construction industry and related fields, as contractors frequently interact with the public and may be held responsible for accidents that occur in connection to their work. Coverage usually applies to incidents that happen on the job site or as a result of a contractor’s operations, which emphasizes the importance of having general liability insurance to mitigate potential financial losses.

The other possible choices do not accurately reflect the typical coverage provided by general liability insurance. While it’s true that certain situations or specific exclusions may apply based on individual policies, the fundamental purpose of general liability insurance is to shield contractors from third-party claims.