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Does a Cgl Policy Cover Independent Contractors

As businesses increasingly rely on independent contractors to perform various tasks, questions often arise concerning whether a Commercial General Liability (CGL) insurance policy covers independent contractors. The answer to this question is not straightforward and depends on several factors, including the type of work the contractor performs and their relationship with the business.

CGL policies typically provide coverage for bodily injury and property damage caused by the business`s operations or products. However, this coverage does not extend to independent contractors automatically. If a contractor causes bodily injury or property damage, they are usually liable for the damages, not the business they are working for. Therefore, businesses that use independent contractors should require proof of the contractor`s insurance coverage and ensure that it is adequate to cover any losses that may result from their work.

There are some situations where a CGL policy may provide limited coverage for independent contractors. For example, if the contractor is performing work on behalf of the business and is listed as an additional insured on the policy, they may be covered for bodily injury or property damage they cause while working for the business. However, this coverage is usually restricted to the specific work the contractor is performing and does not extend to any other work they may do independently.

It is important to note that a CGL policy does not provide coverage for a contractor`s faulty or defective workmanship. For example, if a contractor installs faulty electrical wiring that later causes property damage, the CGL policy would not cover the damages resulting from the faulty workmanship. Instead, the contractor would be liable for the damages they caused, and the business would need to pursue legal action against the contractor if necessary.

In conclusion, while a CGL policy may provide limited coverage for independent contractors, businesses that use independent contractors should require proof of the contractor`s insurance coverage and ensure that it is adequate to cover any losses that may result from their work. A CGL policy does not provide coverage for a contractor`s faulty or defective workmanship, and businesses should take steps to protect themselves from potential liability resulting from a contractor`s actions.

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