Contractor Liability Insurance: A Comprehensive Guide

​With every construction project, you put a lot on the line. Accordingly, it's important to ensure that you have sufficient liability coverage.

It's great when you win a bid for a project. However, some project owners require you to have specific insurance to accept a bid. Typically, these coverages include general contractor liability insurance, workers comp, and vehicle insurance.

However, a growing number of owners require contractors to invest in owners' and contractors' protective liability insurance. This kind of coverage is not well-known. It's also often misunderstood.

General contractor liability insurance
General contractor liability insurance generally protects contractors in a position of trust and authority, like being the general contractor of a home construction project. It protects them against lawsuits that arise from legal disputes during the construction phase of a project.

If the general contractor has general contractor liability insurance, then they are protected from any lawsuits that may arise from the actions of their employees and subcontractors on a project. The contractor also doesn't have to shoulder the financial burden of lawsuits from their negligence.

Workers comp
Workers' compensation covers your employees when they are injured on the job. These are often employed temporarily. Employers must pay for medical expenses, including lost wages.

As for homeowners insurance, it's primarily for property and liability coverage. If you're transporting or deploying materials, you should be covered.

Vehicle insurance
It's the insurance that covers the driver of the vehicle you own or rent. This insurance is often mandatory. However, if you drive your vehicle, it's not. In that case, you'll need the owner's policy.

So why do you need vehicle insurance? Because a vehicle can be a major liability to a contractor. It might not take a lawsuit to result in a huge loss. If you are not protected, the other drivers could leave with lots of damages. You could lose everything you own.

Contractor's protective liability insurance
You'll encounter this insurance when you are working on a project for an individual or business. It's insurance designed to protect you if you make a mistake on the job.

In many states, you'll need a contractor's protective liability insurance to solicit a bid or perform any sub-contracting on a project.

Liability coverage protects you if you make a mistake that leads to someone's injury. It also covers your business against liability claims if you're a recipient of compensation.

At Robinsons Insurance Agency, LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (888) 254-7350. Get your free quote today by CLICKING HERE.