Contractor liability insurance is often a necessity for a small business. Building contractors need insurance to cover any damages that may arise from accidents and mistakes on the job site. If anything goes wrong on the building site, it will be considered the contractor’s fault, whether it is really his fault or not. This also includes HVAC contractors, restoration and residential home builders, highway and road construction, as well as, masonry work for tile, marble, and mosaic, plumbing, electricity, carpenters, and painters. In the case of on-the-job injuries or death of employees, bystanders and owners, there can be huge medical and property damage costs which can mostly be covered by contractor liability insurance.
General contractor liability insurance: When is it required?
Like other types of contractor insurance, general contractor liability insurance is required for contractors in most states even if they have no employees and are sole proprietors. If there are employees, worker’s compensation may also be necessary. A building company or municipality that employs contractors will require that the contractor have insurance that is suitable for the type of business he conducts. For example, if there is any flammable material or hazardous chemicals used in the work, the insurance policy will need to cover this. These companies have policies on risk management and often require that the contractor have more than one policy of contractor insurance.
