The following are some types of insurance contractors may need:
General liability insurance may help protect contractors against third-party claims of bodily injury, property damage or personal injury caused during the contractor’s work or operations. It may help cover legal fees, third-party medical expenses, settlements or judgments resulting from such claims.
Workers’ compensation insurance may help provide benefits to employees who suffer work-related injuries or illnesses. It may cover medical expenses, lost wages, disability benefits and rehabilitation costs. Workers’ compensation insurance may also protect employers from lawsuits filed by injured employees.
Property insurance may help protect contractors’ physical structures (e.g., buildings and garages) against risks such as fire, theft, vandalism or severe weather. It may help cover the cost of repairs or replacement.
Contractors equipment insurance protects contractor-owned equipment and machinery from damage, theft or loss—both on and off the construction site. It may cover tools, heavy machinery, vehicles and other equipment.
Builders risk insurance may help protect construction projects in progress. It may cover costs of damage to the structure, materials and equipment caused by events such as fire, vandalism, theft or severe weather.
Professional liability insurance may help protect contractors who provide professional services or advice. It may cover negligence claims, errors or omissions in the design, project management or consulting services.
The insurance needs of contractors may evolve as their business grows or as they undertake different types of projects. Contractors need to work with a knowledgeable insurance agent or broker who can assess their specific risks and recommend a comprehensive insurance package that adequately protects their business and financial interests.