Contractors face many risks from accidents on job sites to damaged client property. Unexpected issues can happen at any time. Having the right insurance can protect you financially if things go wrong. Without proper coverage, you may face expensive lawsuits, medical bills, or business losses.
The insurance you need as a contractor depends on many factors and legal requirements.
Do I Need Contractor Insurance?
Contractors work in environments that come with risks. You may need contractor insurance if you:
- deal with heavy equipment and dangerous tools
- work on unpredictable job sites
- give professional advice or services that could lead to injury or damage
- use vehicles in your business
These conditions can lead to accidents, injuries, or property damage.
What Type of Insurance Should a Contractor Have?
Having the insurance you need as a contractor protects your business and helps you operate.
General Liability Insurance
General contractor insurance coverage protects against third-party claims. This shields you financially for property damage and bodily injury. What happens if someone becomes injured on your job site, or you damage a client’s property? General liability can cover medical costs, repairs, or legal fees.
Professional Liability Insurance
Contractor insurance for liability is important if you offer:
- expert advice
- technical designs
- specialized services
It covers claims of errors, negligence, or mistakes in your work that cause a financial loss or harm to clients.
Commercial Auto Insurance
You may need this insurance as a contractor if you use vehicles for work. It protects you and your employees if your business vehicle gets into an accident. If the accident causes injuries or property damage, you can avoid the burden of the bill.
Workers’ Compensation Insurance
Workers’ compensation is required in most states if you have employees. It covers:
- medical bills
- lost wages
- rehabilitation costs for workers injured while on the job
Tools and Equipment Coverage
Protects your tools and equipment against:
- theft
- damage
- loss
This ensures you can continue working without costly interruptions if anything happens to your gear. You don’t have to pay out of pocket to repair or replace expensive, vital equipment.
Builders Risk Insurance
This policy covers damage to a construction project while it’s in progress. It protects materials, equipment, and property against events like:
- fire
- theft
- weather damage
However, floods would require additional specific coverage.
Hold Harmless Agreements/Additional Insureds
Some clients may ask to be an “additional insured” on your contractor insurance. It allows them to get protection under your policy. A hold harmless agreement shifts certain liabilities from the client to you, giving them added legal protection.
What Are the Insurance Requirements for Contractors?
The insurance you need as a contractor may vary by state, business, and what clients may want.
Some insurance requirements for contractors in New Hampshire include:
- Workers’ compensation insurance
- Commercial auto insurance
- General liability insurance
- Surety bond
- Umbrella liability
- Pollution liability
Insurance requirements for contractors in Vermont includes:
- Workers’ compensation insurance
- Commercial auto insurance
- Professional liability
- General liability and property damage
- Umbrella or excess liability
- Additional insured
- Cyberliability
Custom Insurance Solutions for Your Business
No two businesses are exactly alike. You can benefit from a personalized approach to insurance. Learn more about our general contractor insurance policies today.
