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3 Reason To Have Contractor’s Liability Insurance

There’s a reason everyone you see at a construction site almost always has protective gear such as hard helmets, safety shoes, etc.

Construction sites are extraordinarily action-packed and inherently high-risk zones. These sites will require more than just protective clothing on the workers to be optimally safe.

Injuries and damages will likely happen at some point in any of your contracted jobs. If you have the right policy, you can limit how hard the accident’s impact may hit you.

While there are different kinds of business insurance policies your company should consider having, this article will focus on General Liability Insurance. Let’s go through some of the reasons it’s a good idea for your company to get one.

Offers Protection

The first reason sounds pretty obvious, but it needs as much emphasis as possible. The last thing you want as a contractor is to end up footing a large bill that you could have avoided by merely having a little foresight.

In the construction industry, you’re technically dicing with the possibility of an accident or a miscalculation every day. There’s so much heavy-duty machinery, scary heights that workers have to climb, and a lot of work—which amounts to tired people, and tired people are more prone to making mistakes. In the end, it’s not about if an accident will happen but when.

So, your need for protection in such events should not only be anticipated but also planned. Work with an experienced contractor’s insurance broker who can help you find the protection you need for your business. With their help, you can get a General Liability Insurance policy that will cover:

  • Expenses for property damage claims against your company
  • Medical expenses if someone is injured during the work
  • Damages a product your company installed might cause
  • Advertising injury claims against your company
  • Administrative costs for the handling of the covered claims
  • Court costs, judgements and settlements on claims

In general, this coverage will help you protect yourself and your business from liabilities that might emerge due to accidents involving other people and properties that are not necessarily your employees or your property, respectively.

Your business deals with clients, and dealing with other people comes with so many risks. It’s a good idea to anticipate these risks and plan how you deal with them when they arrive. Failure to do so can harm your business’s finances, either through the direct costs of paying for these damages or through indirectly damaging the company’s reputation if you fail to cover expenses for accidents that end up hurting your clients or damaging their property.

Make Your Bids Stronger

There’s competition in almost every industry, but this competition is more direct in the construction industry. Your business will have to submit bid documents that compete against a pool of other bids from other construction companies.

Your company’s case will have to prove your proposition is better than the rest. To get this competitive advantage, a good place to start is to make sure your company is mitigating against risks.

For contractors, having General Liability Insurance goes a long way in helping them get and maintain clients.

It Is a Requirement By Law

In the end, it’s not a matter of choice whether your business should get General Liability Insurance or not. It’s a federal requirement for contractors. Yet, it’s still essential for you to know why it is a requirement that protects others just as much as it protects you!


There are different requirements based on where your construction company is based, so you must be savvy of the laws governing your business.

Make Safety Your Priority

As a contractor, you can’t afford to go without insurance against accidents. Just because an accident hasn’t happened doesn’t mean you should always count on that luck. When an accident occurs, having General Liability Insurance will be your business’s greatest advantage. It’ll save you from losing a huge chunk of your company’s money in one go and even from potentially going broke.

If you’re looking for ways to propel your contractor business to the next level, make sure your company has an up-to-date and consistent policy that can help you gain the trust of new clients and win new bids.

Paying for premiums—an insurance policy should be a crucial part of the growth you’ve been planning for your company.