There are a few different types of insurance that contractors should maintain in order to protect themselves and their business. The most important type of insurance for contractors is general liability insurance, which covers damages or injuries that occur as a result of the contractor's work. Contractors should also consider purchasing workers' compensation insurance, which covers medical expenses and lost wages for employees who are injured on the job. In some states, it is required by law for businesses to have this type of coverage. Finally, contractors may want to purchase commercial property insurance to protect their tools and equipment from damage or theft.