What Kind of Insurance Do Contractors Typically Need?

In the construction industry, managing risks is a critical aspect of running a successful business. Contractors face numerous potential hazards, from on-site accidents to property damage and environmental liabilities. To financially safeguard their operations, contractors must have the right insurance coverage.

Insurance for Contractors

The following are some of the most common types of insurance that contractors typically need:

• General liability insurance—This is perhaps the most crucial type of insurance for contractors. It can help cover claims related to bodily injuries, property damage and advertising injuries that might occur during the course of business operations. For example, if a client or third party is injured on the job site, general liability insurance can help cover medical expenses and legal fees.
• Workers’ compensation insurance—This insurance is required in most states for businesses with employees. It can offer coverage for medical expenses and lost wages if an employee is injured or falls ill due to job-related activities. This not only protects employees but also shields the contractor from potential lawsuits.
• Commercial auto insurance—Contractors often use vehicles to transport tools, equipment, and materials. Commercial auto insurance covers vehicles used for business purposes, offering financial protection against accidents, theft and damage.
• Builders risk insurance—This policy covers buildings and structures while they are under construction. It can financially protect against risks such as fire, vandalism and weather-related damage.
• Professional liability insurance—This coverage is essential for contractors who offer design or consulting services. It can financially protect against claims of negligence, errors or omissions in the services provided.
• Inland marine insurance—This type of insurance can help financially cover tools, equipment and materials while they are transported or stored off-site. It is beneficial for contractors who frequently move their equipment between job sites.
• Pollution liability insurance—For contractors involved in projects that might pose environmental risks, pollution liability insurance can offer coverage for claims related to pollution incidents, including cleanup costs and third-party damages.

Learn More

Having the right insurance coverage is vital for contractors to protect their business, employees and clients from unforeseen risks and liabilities. By investing in these essential insurance policies, contractors can help ensure they are well-prepared to handle any challenges that come their way. Contact Esquire Insurance Services of Georgia to discuss an insurance policy tailored to your specific operations.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.