What is Contractors Insurance and Why Do You Need It?

Understanding the Importance of Contractors Insurance


If you’re a carpenter, drywall installer, electrician, landscaper or any other type of contractor and are not already aware of the importance of contractors insurance, you’re jeopardizing your business. Contractors face risks every day, ranging from severe to minor. They can be held responsible for a whole host of liability issues, which is why it’s so important to take steps to safeguard your livelihood. Insurance is a safety net that can protect you from financial ruin if you find yourself facing an expensive lawsuit.


Who needs contractors insurance?

Contractors, subcontractors and independent tradesmen should carry commercial insurance. It not only protects their business, but it’s often a requirement by many employers before you can start working with them. Common trades that need contractors insurance include:

  • Construction
  • Carpenter
  • Plumber
  • Electrician
  • Landscaper
  • Painter
  • Handyman
  • And more!


What does it cover?

Coverage will depend on your industry and risk. For example, a roofing contractor will need different cover than a HVAC technician. A professional insurance agent will be able to tailor coverage to suit your individual needs.

  • Basic Coverage:

    General Liability – Covers you if your business is liable for things like injuring people, damaging property or for faulty work
    Property Insurance – Protection for your tools, equipment and other property your business owns.
    Commercial Auto – Protection for vehicles used for work or to transport tools and other contractor materials.

  • Additional Coverage:

    Builder’s Risk Insurance – Coverage that protects the value of labor and materials in a partially completed project.
    Contractors Errors and Omissions Insurance – Liability coverage that helps pay for repairing and replacing the work done by your business if that work is unintentionally defective.
    Umbrella Insurance – Extra liability coverage to protect against large judgments from severe accidents.


Ready to find the right contractors insurance for your needs? Contact the team at Humble & Davenport Insurance for tailored solutions today.

Comments are closed.