Having the wrong insurance for your general contracting business is like using a hammer on a screw. You might be able to pound a screw in, but you’ll mutilate your project in the meantime.

General liability insurance covers you for accidents, property damage, libel, and more. It is the most important tool in a contractor’s business toolbelt, so here are some reasons why you shouldn’t get caught without it.

Rules, Regulations, and Licensing

Having general liability insurance isn’t just recommended for general contractors, it’s the law. Without it, you could be barred from working in certain counties, cities, or even whole states. Make sure you stay in compliance by finding out what the rules and regulations are for the area you’ll be doing business in.

In addition to legal requirements, not having general liability insurance could mean the difference between getting your project approved by the zoning boards or getting entangled in bureaucratic red tape for months. You could lose out on major bids or contracts simply by overlooking your insurance.

Signing up for auto-renewals when you purchase your insurance policy is one way to make sure you’re never caught without coverage.

Financial Protection & Peace of Mind

In addition to being an important tool, you can also consider general liability insurance the equivalent of a hard hat for your bank account. Should a lawsuit or a theft drop on you, your finances will be shielded from major damage. If these unforeseen events should occur, general liability insurance covers your legal expenses, even when you’re not at fault for an injury.

Equipment theft is also something you have to watch out for. Construction sites have long been targets for thieves who are looking for easy items to pawn. General liability insurance, depending on the specific circumstances, may cover the cost of your equipment if it's stolen.

Professionalism

Savvy clients know better than to trust their projects to shady contractors who operate without licenses or insurance. Clients who hire unlicensed and uninsured contractors are at risk of getting scammed or being stuck with shoddy workmanship. As a professional, you are willing to back your work with insurance.

Sometimes accidents don’t always occur while you are on site. Structural collapses or plumbing and electrical malfunctions can happen months or years after a job is completed, but you could still be held liable. Your clients want the peace of mind that your insurance will cover incidents related to completed operations. By showing them your proof of insurance, you’ll give them that peace of mind.

Buy General Contractor Insurance Today

Buy your general contractor’s insurance online in an easy, no-hassle process that will get you immediate coverage. Compare policies to get the most comprehensive coverage available.

All insurance policies have conditions, limitations, and exclusions, please refer to the policy for exact coverages.