When is it appropriate to drop your Commercial General Liability Insurance Coverage?
The short answer is never, if you still own or have an insurable interest in your power generation project.
We get asked from time to time by clients if it is okay to drop General Liability coverage while a plant has no water or is under repair. Our answer is always no. Just because your plant is not generating does not mean that you are any less likely to experience a liability loss. Liability isn’t based on whether or not your project is in operation. If you own, or have an insurable interest in anything, liability insurance will protect you against a liability claim.
In our over 30 years of experience we have seen a number of liability losses on idle plants. For example, If someone else’s backhoe operator is doing work above or below your project and is killed in a roll over, you can bet that a personal injury attorney will file a law suit against your project – weather you are negligent or not. Personal injury attorneys always cast a wide net and sue everyone within a few miles of an accident trying to find someone with insurance or deep pockets.
This is not the time to find out you canceled your liability insurance coverage to save a few dollars.
Your General Liability policy will cover the cost to defend you against valid and frivolous claims.
If you have questions about your current insurance, or would like a quote for your project, CLICK HERE to contact us.