5 Contractor Insurance Policies You MUST Have


Are you an artisan, specialty, or general contractor who has experienced some dramatic changes in their industry over the past ten years? The litigious society comes with changes through new legislation, construction defect claims, and unreasonable contractual obligations.

That is why all contractors must purchase contractor insurance policies that are designed for their industry.

This insurance policy ensures that contractors are adequately covered. When working in the construction trade, errors are bound to happen, which can lead to injuries and damages.


Construction sites will be danger prone, including proper training and updated safety protocols are a must, having the proper contractor insurance is just as important. Lack of contractor insurance policies can have some devastating consequences for any company both big and small regardless of its size or specialty.

These are the top five insurance coverage that every contractor should have:

1. General Liability Protection

Contracting and Construction jobs are very risky jobs that can go wrong at any time. If a client receives an injury while on your business premises, their medical expenses will be your responsibility. If you install equipment that can cause harm to the client, your business may be held responsible. So to avoid such risks, you need to purchase general liability coverage, a business insurance policy that guarantees the following:

Damage to a third party’s property caused by you or your employee

Protections against claims of slander or libel

Third-party bodily injury and other related insurance policies.

2. Builder’s Risk Coverage

If you are a contractor, then you need to be working at the client’s site, which exposes you to unique risks. For starters, your tools can get lost, damaged, or stolen at the construction site. Several accidents may happen that can cause serious injury to you or your crew or damage to the worksite.

In this case, the property insurance policy will not cover these losses because they happened outside the primary location of your business. So, with a builder’s risk insurance you need to get the following benefits, no matter where you work:

Your investments will be protected, and you will have financial security

Your business equipment will be protected

3. Surety Bonds

If you are an independent contractor, you must familiarize yourself with surety bonds and license bonds. These are required by certain states and townships so that you complete your services for all building codes and other regulations. The bonds are a guarantee of surety to the government from your business.

4. Commercial Property Insurance

With the current growth of the contracting and construction industry, construction professionals and contractors need to have property insurance that will help them cover the risks associated with work. The property insurance laws will cover the physical damage and loss of property. This insurance policy is also designed to cover the business property while in transit to the construction site.

5. Commercial Auto Insurance

A commercial auto insurance policy is designed to cover you whenever you and your employees are commuting to and from the workplace. Commercial Auto insurance will help you avoid the high vehicle repair costs, lawsuits due to accidents, and medical expenses in case of bodily harm.



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