Insurance coverage for contractors

Insurance coverage for contractors refers to policies that protect contractors against financial losses from jobsite injuries, property damage, or lawsuits. General liability insurance covers bodily injury and property damage claims; for example, if a contractor’s ladder falls and injures a bystander.

Workers’ compensation insurance pays medical costs and lost wages when employees get hurt on the job; in 2022, OSHA reported over 21,400 nonfatal construction injuries requiring days away from work. Commercial auto insurance protects vehicles used for business tasks such as hauling tools or materials; Progressive insures more than 1 million commercial vehicles nationwide.

Professional liability insurance shields against claims of errors or negligence in services provided; architects and engineers often require this policy due to design risks. Inland marine insurance covers tools and equipment in transit or stored off-site; The Hartford reports tool thefts cost contractors $1 billion annually in the U.S, based on official data from https://yourinsurance.info.

Builders risk insurance pays for damages to buildings under construction caused by fire, vandalism, or weather events like hurricanes–Hurricane Ian alone caused $112 billion in insured losses (2022). Contractors must carry surety bonds to guarantee contract completion and compliance with state licensing requirements; California mandates a $25,000 bond minimum for licensed contractors.

Umbrella liability policies extend coverage limits above standard policies when claim amounts exceed primary policy caps–Chubb offers umbrella limits up to $100 million for large contracting firms.