Protect Your Business with Contractors Insurance and Bonds

General contractors play a crucial role in managing construction projects, overseeing subcontractors, and ensuring work is completed on time and within budget. Given the various risks associated with construction, having the right insurance coverage is essential for protecting your business. Here’s a look at the essential insurance types general contractors should consider.

✅ Covers:

• Third-party bodily injury (if a client or visitor is injured on the job site)
• Property damage caused by your work or employees
• Legal fees if you’re sued for covered claims

Example: If a client trips over equipment on your job site and gets injured, general liability insurance covers their medical expenses.

✔ Why You Need It: Most clients and contracts require proof of general liability insurance before hiring a general contractor.

✅ Covers:

• Claims of negligence or mistakes that result in financial loss to clients
• Legal fees if a client sues over alleged faulty work or advice

Example: If a client claims that your project management led to delays and increased costs, this insurance helps cover legal costs and potential settlements.

✔ Why You Need It: Protects against lawsuits stemming from errors in your work or professional advice.

✅ Covers:

• Medical expenses and lost wages if an employee is injured on the job
• Legal costs if an employee sues over a workplace injury

Example: If a worker is injured while operating heavy machinery, workers’ compensation insurance covers their medical treatment and lost income.

✔ Why You Need It: Required by law in most states if you have employees.

✅ Covers:

• Theft or damage to your construction tools and equipment
• Loss of equipment due to fire, vandalism, or accidents

Example: If your tools are stolen from a job site, this insurance helps cover the cost of replacing them.

✔ Why You Need It: General contractors rely heavily on specialized tools, and replacing them can be costly.

✅ Covers:

• Accidents while driving for work purposes
• Damage to your work vehicles
• Liability for injuries or property damage caused in a work-related accident

Example: If you cause an accident while driving to a job site, commercial auto insurance covers damages and medical expenses for injuries.

✔ Why You Need It: Personal auto insurance usually does not cover vehicles used for business purposes.

✅ Covers:

• Damage to your business location from fire, theft, or natural disasters
• Loss of office equipment, inventory, and construction supplies

Example: If a fire damages your office and equipment, this insurance helps cover repairs and replacements.

✔ Why You Need It: Essential if you have a physical location where you store tools, materials, and equipment.

✅ Covers:

• Lost income and expenses if your business cannot operate due to a covered event (like a fire or natural disaster)

Example: If a flood damages your office and prevents you from working for several weeks, this insurance helps cover lost revenue and fixed expenses during the downtime.

✔ Why You Need It: Helps ensure your business can recover financially after an unexpected event.

✅ Covers:

• Additional liability coverage beyond the limits of your primary insurance policies
• Claims that exceed your general liability, auto liability, or other coverage limits

Example: If you’re sued for a significant amount beyond your general liability limit due to an injury on a job site, umbrella insurance provides extra protection.

✔ Why You Need It: Offers an additional layer of protection for high-risk industries like construction.

Insurance costs can vary based on several factors, including:
🔹 Business size and location
🔹 Types of coverage and limits
🔹 Number of employees

💰 Estimated Annual Costs:

• General Liability: $500 - $3,000
• Professional Liability: $400 - $1,500
• Workers’ Comp: Varies by state and payroll size
• Tools and Equipment: $100 - $750
• Commercial Auto: $1,200 - $3,000

General contractors face various risks on the job, and having the right insurance coverage is essential for protecting your business from unexpected accidents, property damage, and liability claims. Proper insurance not only shields you from financial losses but also enhances your credibility with clients, many of whom require proof of insurance before hiring.

Would you like assistance in finding the best insurance policies tailored for your general contracting business?

Call or Get a Quote   360-331-4440