What Does Insurance For Contractors Cover?

If you are a residential or commercial builder, general contractor, or own a design and build firm, here are common insurance policies you may need asap.

Do you own a construction company? If so, you are going to need some insurance to keep your clients and your employees safe while work is ongoing. However, trying to work out which insurance policies are necessary for your construction business can be quite a headache.

If you are a residential or commercial builder, general contractor, or own a design and build firm, here are some of the most common insurance policies you may have to choose from and what each of them will entail.


Personal liability insurance

If you are looking for insurance as a construction contractor, then you are definitely going to need to pick up a personal liability insurance policy at some point. This protects you against construction accidents while you are on the job site.

Perhaps, you turn your back on your toolkit for just a moment, and your client’s child trips over it and bangs their head. Not only will you have to deal with an angry client, but they may also demand that you pay for any medical bills. Personal liability insurance should cover unforeseen incidents like this.


Company vehicle insurance

While you will have your own personal driving insurance for your private life, you may still need vehicle insurance to protect your commercial vehicles.

Third-party damage is a real concern when you are visiting a client’s property with your company vehicle. You can be as careful as possible and still accidentally run over a client’s dog on your way out. As a result, a lawsuit and vet bills could soon find their way to you.

Commercial vehicle insurance will help cover these types of costs. Review policies that are specifically designed for commercial vehicles and see if there is one which can help you.


Professional indemnity insurance

This one might not always be necessary, but it could be useful for certain types of contractors. Indemnity insurance is typically used if there is a risk that a client might injure themselves either physically or financially based on professional advice you provide. It is usually reserved for doctors, so can it apply to contractors? Absolutely.

If you, as a contractor, advise a client to pick one building option over another then you should definitely consider purchasing a professional indemnity policy. Let’s say you advise a client to pick a certain type of support for their roof during the construction of their house. A year later, the roof is ripped off during a tornado. The clients may feel another material might have withheld the wind and blame you for the damage to their property. Bills like this can be expensive and difficult to pay. A professional indemnity insurance policy will help protect your business from claims such as these.


These three policies are just a few of the ones you might need as a business owner in the construction industry. Take a look into where your business needs coverage today. You never know when the right policy will dig you out of a mistake. Speak to a qualified insurance broker and get a comprehensive insurance policy for your business now.

Jayce Redford is a content marketer and a project manager at Ocere, a digital marketing company based in the UK. He graduated with a bachelor’s degree in Business Management from Ateneo de Davao University. He has been with Ocere for 8 years and counting.


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