Building a house or a commercial establishment requires a lot of resources, equipment and manpower. These are the resources that the general contractor will look into from day to day until the project is accomplished. It is of course the desire of the management to keep their people safe all the time, but it really cannot be avoided that accident may happen which gives them the reason to have company covered with contractors liability insurance. This is there protection against any incident that would jeopardize the accomplishment of the project.
If an employee or a client is injured while inside the construction premises, and they sue the company for the accident, then the contractor has contractor general liability insurance as their first line of defense. In case that they need to pay for the damages then it is the insurance that will shoulder for the expenses for them.
The insurance company has a battery of lawyers as their defense to get away with the obligation by proving the innocence of the contractor. If you do not have the coverage, it is most likely that you will be paying for all these damages from your own pocket which is just adding injury to the insult. It is also very likely that you will not be able to bid or participate in the project because most of the project proponents require the contractor to have insurance.
It is also very important that the project site has all the needed warning signs and precautionary measures so that such untoward scenario will be avoided. Some major construction projects need a subcontractor that the main contractor would hire to do small part so f the project like for example doing the installation of the glass windows of the building. It is recommended that these subcontractors should also get their individual liability insurance as well.