What Kind of Insurance Should a Contractor Have?

Contractors Insurance

• General Liability Insurance. General liability insurance provides coverage concerning bodily injury or property damage that you, your workers or tools might cause during work. It covers both medical payments and possible lawsuits. This can also cover personal and advertising injury such as libel and slander.
• Errors and Omissions (E&O) Insurance. Unlike general liability, which provides coverage for non-negligent acts, E&O insurance provides protection in case a contractor makes a mistake due to negligence. For example, if a plumber mismatches threaded fittings and creates a fire hazard, which then catches fire and burns part of the home, the homeowner is within their rights to sue for negligence. E&O insurance steps in to pay for the damages and possible legal fees.
• Commercial Auto Insurance. Contractors travel a lot for work. If you’re driving a personal vehicle as part of work, a personal insurance policy likely won’t cover you. Commercial auto insurance provides coverage for vehicles used or owned by the company, including your workers’ vehicles.
• Pollution Liability Insurance. Certain contractors work with hazardous materials. Plumbers, heating and air, landscapers and pool installers all handle some sort of chemicals. Pollution liability provides coverage if these chemicals or materials cause environmental damage, property damage or bodily injury.
• Workers Compensation. Even if you only have one employee, you’ll likely need workers compensation. Along with being required for most businesses, workers compensation helps when an employee is injured or contracts an illness at work. This is important for contractors who handle heavy, dangerous equipment.

Are Contractors Required to Have Insurance?