If you’re running a business as a contractor, you need to protect yourself and your business from legal attacks. You’re operating in a very litigious society, and it’s not uncommon for businesses to face lawsuits and legal threats. Contractors who expect to work with a variety of clients will need some type of insurance coverage in order to protect themselves. Let’s take a look at the importance of having insurance and the kind of coverage that’s available.

Gain The Trust Of Your Clients

When dealing with large and expensive projects, it’s important that clients are able to trust the contractors they hire. One of the best ways to garner the trust of clients is by having general contractors liability insurance. If you’re working on a project, and one of your workers accidentally damages a piece of the client’s property, the client’s insurance company may be forced to cover the damages; in some cases, the cost will come out of the client’s own pockets.


No client is going to hire a contractor who isn’t covered and risk taking on a financial burden. This means that your business may not see as many clients while you’re without insurance. By having insurance you’re freeing your clients of any financial responsibility if an accident were ever to occur.

Types of Coverage Available

If you have specific vehicles that you use for your business, you might benefit from having commercial auto insurance. Commercial auto insurance is specifically for vehicles that have been designated for business use. Often times contractors will use their personal vehicles for their businesses thinking that their coverage will handle any damages. Unfortunately, many of these claims are denied. Why? An insurance company may have the right to deny your claim if it’s determined that the damaged vehicle was being used by a business.

Workers compensation is another type of coverage that all contractors should have. General contractors insurance may cover damages done to a person or property but this doesn’t mean it’ll cover your workers. Without the official site that workers compensation provides, if your workers on injured on the job, they may be forced to take legal action against you. However, workers compensation can cover on-the-job injuries for all workers.

As you can see, having contractors insurance is very important. Not only will having insurance protect your business, but having insurance will also help your business grow. There are various coverage options out there to choose from, and many of them are available at affordable prices. You can find more information at this site in order to make a more informed decision.