General liability insurance is a broad type of insurance that covers general business risks. This is typically the first kind of insurance that a company purchases and covers basic needs like bodily injury, property damage, and medical payments. It’s important to note that general liability insurance takes many forms. The general answer is that you should have general liability coverage for your contracting business, the question is, which type?

There are three main types of contractor insurance. The first is contractor’s liability insurance, for those who have small budgets with projects that do not require a ton of insurance and the business does not have substantial assets to leverage. Its primary function is to cover claims made by damage a contractor causes to a third party. Within this coverage there are multiple subcategories: workers compensation, property insurance, and commercial auto. Workers compensation is critical for your contracting business because it covers injuries that your employees sustain while performing their contracted duties. Property insurance is for if you own property. Finally, commercial auto is for a business utilities company automobiles.

The next type of contractor insurance is for larger projects that require certain types of insurance coverage. There is a liability type of insurance that can cover basically any size construction project. In addition, a part covers leased equipment. The last kind of general liability coverage is for large projects. Any sort of construction project that has pollution or environmental implications will fall under this umbrella.

To conclude, it is a smart idea for any construction business to maintain general liability insurance. This helps to protect all parties involved: your business, your employees, and any citizen who wanders near your project. You have different types of liability coverage to assist in all aspects of your specific business.

The local team at Winstead Insurance in Elkton, MD is here to help answer any of your insurance questions. We have a wealth of knowledge and the expertise to handle any of your insurance challenges. Give us a call today or visit our quote page for a free quote

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