Insurance for Contractors

Professional liability insurance, sometimes called errors and omissions or E&O, protects contractors against claims of negligence, faulty workmanship and more.

General contractors and subcontractors alike face specific risks when it comes to the work they do and the advice they provide on the job. Professional liability insurance protects against the costs of a claim or lawsuit brought by a client or vendor.

Here is an example of what professional liability insurance for contractors can cover.

• Negligence: A general contractor neglects to include required accessibility features in a commercial building, despite their inclusion in the design. The discovery of the error delays the opening of the building, which results in a loss of revenue for the client. The claim by the client against the contractor is covered by the contractor’s professional liability insurance policy.

Learn more about professional liability insurance for contractors, including costs.

General liability insurance, sometimes called Commercial General Liability (CGL), could protect your business from another person or business’s claims of bodily injury, associated medical costs, and damage to property. Having this kind of coverage is beneficial in several instances:

• Bodily injury: A client trips over your toolbox and fractures their leg. You could be liable for the medical costs, however, your general liability insurance policy could cover those costs, protecting your business.
• Personal injury: One of your employees is out to lunch. He is overheard talking to another employee about one of your clients in an unflattering and false way. The client learns of this discussion and sues for slander. A general liability insurance policy could cover the subsequent claim, up the policy limits and appoint an attorney to defend you if necessary.
• Property damage and data loss: You are renovating a home office for a client and their desktop is nearby. During the demolition phase you accidentally drop something on the desktop causing irreparable damage. A general liability insurance policy could cover the claim up to your policy’s limits of liability.

Learn more about general liability insurance costs.