As a general contractor, you are responsible for overseeing construction projects from start to finish. This means you need to ensure that everything runs smoothly and safely. One of the most important steps you can take to protect yourself and your business is to obtain the right insurance coverage. But what type of insurance does a general contractor need? In this article, we will explore some of the most important policies to consider.
General Liability Insurance
General liability insurance is the foundation of any contractor`s insurance program. It provides protection against claims arising from bodily injury or property damage that you or your employees may cause while working on a job site. For example, if a worker accidentally damages a client`s property, general liability insurance can help cover the cost of repairs or replacements. It can also cover legal fees and damages if you are sued by a third party.
Workers Compensation Insurance
As a general contractor, you are likely to have employees working under you. Workers compensation insurance is designed to protect your employees in case of job-related injuries or illnesses. This policy will cover medical expenses, lost wages, and other related costs. It will also protect you from lawsuits if an employee becomes injured or ill while working on a job site.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is designed to protect contractors from claims of professional negligence or errors. This is particularly important if you provide design or consulting services in addition to construction work. If a client is unhappy with the quality of your work or believes you made a mistake, they may sue you for damages. Professional liability insurance can help cover legal fees and damages associated with such claims.
Commercial Auto Insurance
If you use vehicles for your business, commercial auto insurance is a must. This policy provides coverage for damage to your vehicles, as well as liability coverage for injuries or property damage caused by a driver while operating one of your vehicles. It can also help cover the cost of rental vehicles if your own vehicles are out of commission.
Builder`s Risk Insurance
Builder`s risk insurance is designed to protect against damage to a construction project while it is in progress. This policy provides coverage for damage to the building, materials, and equipment during construction. It can also cover damage due to weather, theft, and vandalism.
In conclusion, as a general contractor, you must consider buying the right insurance policies to protect yourself and your business from financial loss. This includes general liability insurance, workers compensation insurance, professional liability insurance, commercial auto insurance, and builder`s risk insurance. Consult with an experienced insurance agent who can help you understand the risks you face and the insurance policies that best meet your needs.