What Kind of Insurance Does a Contractor Need

As a contractor, you know that your work is essential to the success of your business. You also know that accidents and unforeseen events can happen, and that`s why it`s important to have insurance. But what kind of insurance do you need? In this article, we`ll explore the different types of insurance policies that contractors should consider to protect their business.

General Liability Insurance

General liability insurance is a type of insurance that covers bodily injury, property damage, and advertising injury claims. This type of insurance is essential for contractors because it protects them against claims that arise from accidents or injuries that occur on the job site. It also covers claims related to damage caused by your work, such as if you accidentally damage a client`s property while on a job.

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects contractors from claims of negligence or shoddy workmanship. This insurance is essential for contractors who provide advice or consulting services to clients. Professional liability insurance can protect you if a client sues you for not delivering services as promised, or for making a mistake that results in financial losses for the client.

Workers` Compensation Insurance

Workers` compensation insurance is required by law in most states. This insurance covers medical expenses and lost wages for employees who are injured on the job. Contractors who have employees should have workers` compensation insurance to protect their employees and their business.

Commercial Auto Insurance

If you use a vehicle for business purposes, you need commercial auto insurance. This insurance covers accidents and damage caused by your business vehicle, as well as any liability claims that result from an accident. Commercial auto insurance is essential for contractors who use their vehicles to transport tools, materials, or employees.

Property Insurance

If you own a building, or if you keep expensive equipment or tools in a storage facility, you need property insurance. This type of insurance covers damage to your property caused by fire, theft, or other covered events. Property insurance can also cover the cost of replacing lost or stolen equipment.

In conclusion, contractors need insurance to protect their business and their employees. The types of insurance policies you need will depend on the nature of your business and the risks you face. General liability, professional liability, workers` compensation, commercial auto, and property insurance are all essential policies for contractors to consider. Speak with an insurance agent to determine the right coverage for your business.