Contractors General Liability Insurance

As a contractor in , you need liability insurance. Contractors insurance plans often provide some measure of general liability coverage. This means that these plans help reduce the risk that your business will face costly lawsuits that could shutter its doors. The US Small Business Administration suggests that business owners discuss their specific risks with insurance providers to determine what type to get and how much coverage is necessary.

What Does Contractors Insurance Provide?

Contractors insurance policies range significantly in terms of what they offer. Most will have a business owner's policy (BPO) that will provide:

• General liability insurance
• Workers' compensation insurance
• Commercial vehicle insurance
• Other insurance products you need

How Does Liability Insurance Protect You?

No matter what type of business you are in, there are financial risks to you. A customer may be given a defective product. A service may fail. Someone may become injured as a result of working with you. Because you are exposed financially as a business owner, a single claim like this could end up forcing you to close down your business if you don't have insurance. This does not have to happen, though, if you have general liability coverage.

As a contractor, you deal with risks. A plumber, for example, may face risks if the work he or she does fails in some way and causes damage to the home. A general contractor may be held financially responsible for the poor job an employee did on a construction site. Imagine the costs of the damage and repairs, as well as the lawsuit that the victims file against you.