Contractors liability insurance is a business insurance essential for contracting companies both large and small.

More than just a standard liability policy, contractors insurance covers many different risks that contractors face on a daily basis, all under the broad term of liability.

This brief guide will help business owners understand the different types of liability coverage available from a contractors insurance agency that will protect different types of businesses based on their needs and risks.

What Does Contracting Liability Insurance Protect?

To appreciate the different types of contractors insurance policies available today, business owners must understand what these types of liability insurance protect.

Contractors liability insurance protects business assets as well as employees, customers, and the public in various ways.

There are many ways of obtaining that necessary protection, as no two contracting businesses have the same type and level of risk.

With a good balance of essential and supplemental policy coverage purchased from an experienced contractors insurance agency, every general or specialty contractor can be confident that they, their customers, and employees are all protected in important ways.

Essential Contractors Insurance for All Contracting Companies

The essential basic contractors liability insurance coverage that every contracting business should have and may even be required in some areas, includes the following policies:

General Liability - A basic foundation policy that covers customer property damage and injury.
Workers Compensation - Insurance coverage that protects employees if injured while working that is no-fault and eliminates the filing of liability claims by employees.
Builder’s Risk - Covers the liabilities and damages relating to vandalism, fires, natural disasters, and more.
Commercial Auto - Covers business vehicles against liabilities due to at-fault vehicle accidents.

Additional Contractors Liability Insurance Policies

While the above contractors insurance policies provide the minimum liability coverage that companies should purchase to safely do business in the contracting business, it is far from the only coverage needed for total protection.

The following policies, some of which can be purchased as-needed, are frequently recommended by contractors insurance agencies for those businesses that require these additional types of liability protection:

Professional Liability - Protects contractors should they make an error during a project.
Umbrella Liability - Provides excess liability coverage when liability on primary policy has been exhausted.
Hired/Non-Owned Auto - Provides liability coverage when using rented vehicles or equipment.
Contractors E&O - Protects a contracting business against errors and omissions.
Products and Completed Operations - Protects contractors against product liability and liabilities relating to completed projects.
Environmental and Pollution Liability - Covers spills, contamination, and other environmental accidents that a contractor would be responsible for.

Discuss Business Insurance With A Contractors Insurance Agency

No matter what type of work a contracting company performs, it is critical that basic contractors liability insurance of general, builders risk, and commercial auto be purchased.

Beyond those basics, contractors should discuss their risks with an experienced contractors insurance agency to add any necessary supplemental policies for broad protection.

With the right contractors insurance policies and appropriate coverage amounts, contracting businesses and their customers can feel safe and well protected heading into new building projects!