What Does General Contractors Insurance Cover?

As a contractor, you will face a lot of risk. Working for clients means operating on important property that can lead to property damage and other liability issues. To combat these risks, general contractors need property insurance. 

General contractors insurance is designed to cover the unique dangers that contractors face. This insurance is a policy that combines important coverages, such as: 

General Liability 

General liability insurance provides coverage for bodily injury, property damage and personal or advertising injury that may occur throughout the course of business. This insurance can compensate others for medical bills and property damage they may suffer on behalf of the contractor. Personal and advertising injury covers the contractor against claims regarding libel, slander, copyright infringement, theft of another person’s advertising idea and more. 

Professional Liability 

Where general liability covers non-professional negligence, professional liability covers professional negligence that may come directly out of the contractor’s services. These acts of professional negligence may result in a client losing money, which could then turn into a lawsuit against the contractor. Professional liability insurance protects general contractors against such lawsuits by providing compensation for legal expenses such as settlement costs, court fees, defense costs and more. 

Equipment Coverage 

Equipment coverage is a useful property insurance that can cover your expensive equipment in case of damage. If your equipment is ruined or damaged due to fire, wind, hail, lightning, theft, vandalism, etc., this insurance can help you pay for repairs or replacements. 

Commercial Auto Insurance 

Many general contractors use vans and other vehicles to transport equipment between work sites. If you are using a vehicle for work, you may need commercial auto insurance. This auto insurance covers commercial vehicles owned or used by the business for work purposes. It may include coverages such as comprehensive, collision, liability, uninsured motorist and more. 

Workers Compensation 

If you have subcontractors or other types of employees, you will want workers compensation in order to protect them from injury. If an employee is injured on the job, workers compensation insurance can assist with their medical bills, lost wages, disability benefits and more along with protecting your contracting business against a possible lawsuit. 

No matter where or how you work, all general contractors should make sure they have the right insurance to cover their assets, employees and clients in the course of operation. Be sure to ask your insurance agent about contractors insurance.