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Contractors need general liability insurance for protection against regular business risks.
The construction business is unique in that many things can go wrong. This is why comprehensive insurance to cover general liability is critical. However, truly you need much more than this. It is important to not falsely rely on general liability insurance and think this insurance covers things that it does not cover.
For example, if a worker is injured on the job, general liability insurance coverage does not cover this risk. This type of risk is covered by the contractor having workers’ compensation insurance, as mandated by state law.
A special condition exists if a contractor makes products that are sold. For example, if a contractor makes custom cabinetry that is sold as furniture then the contractor needs product liability insurance.
If the contracting business is heavily dependent on the effort of a single owner or a few owners, it is a good idea to have business interruption insurance for calamities and key person life insurance for the key workers in case they feel, are incapacitated or die.
To secure some jobs, especially high-value government jobs, a contractor will usually need to provide a performance bond. A performance bonus ensures that that work will be completed no matter what happens.
These are just a few of the insurance concerns for the contractor. The contracting and the construction business is complex and therefore the policies for the insurance needs are complex as well. Special construction efforts need specialized coverage. This insurance coverage might be quite different between each job. This is why it important to have a specialist in the construction insurance sector to help as much as possible.
Be sure to talk with your agent at E.S.T.I.R. Inc. in Newark, NJ to review your insurance coverage and make sure, it is adequate for your needs.