General Contractor Insurance Requirements that You Absolutely Need
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Whether you are an established contractor, or just starting out, you know that you will need insurance. But what types of insurance do you need? How much? And is it worth risking going without, are all questions that might cross you mind as you begin your research to try and find the insurance you need. And that research can become more than a little difficult when conducted in an industry that becomes more and more complex as the days pass. So, to make that research a little bit easier for you (because it should be) we have listed all of the general contractor insurance requirements below. Here’s what you need to know.

General Contractor Insurance Requirements

When it comes to breaking down general contractor insurance requirements there are two policies that every contractor should know (and every contractor should have). So, just as you wouldn’t leave your home without certain tools in your toolkit, don’t leave home without these policies in your insurance toolkit.

Workers Compensation

Workers comp is required by law in most states and, when it’s not, it’s typically required in any contract that you end up working on. It will protect you and your employees if either party ends up injured as a result of some work-related activity. It will also cover up to two-thirds of your employees income until they can return to work. But, if you do not choose to acquire workers comp, you might find yourself facing quite an array of litigation and fines from government organizations. Fines that could put your business under a considerable amount of stress. To avoid all of that, you just need to find a workers compensation policy that is within your budget. Plenty of companies offer free quotes online so you are free to explore and find the best rate for your business.

Commercial General Liability

Commercial general liability policies (CGL’s) are also typically required by law (just like workers comp). And, they are also typically required in most contracts as well. CGL’s will ensure that your business is protected in the event of an accident that results in property damage, injury or litigation. It will cover your defense costs and any damages that may have occurred. Not a bad deal (if you ask us) and will keep your business moving forwards.

These are two of the most popular (and important) policies when it comes to general contractor insurance requirements. But, they are not all of the requirements. For the full version of general contractor insurance requirements please feel free to check out this wonderful breakdown from the Associated General Contractors of America. If you have any further questions please feel free to give us a call at 1-800-649-9094. We look forward to hearing from you!



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