General contractors play a large role in America’s society. They’re the ones responsible for large-scale construction projects in cities. Contractors also work on homes and other smaller properties.

Regardless of what they’re employed to do, general contractors should have general contractor insurance.

Plenty of contractors ask themselves, “Why do I need it?

When an accident happens in a workplace, such as an office, it’s often relatively minor. For general contractors, accidents on the job can be very serious.

Plus, the impact of an accident can affect the worker, the property, and even the owner of the property.

To put it simply, it’s a very bad idea to work as a general contractor without proper coverage.

Not sure where to start? Read on to learn more about this type of insurance and what to look for when browsing policies.


It’s important to know what’s actually covered by your general contractor insurance.

Luckily, injuries and lawsuits are often handled by the insurance if either of those issues were to become a factor.

This type of insurance also covers miscellaneous issues, such as copyright issues, that may occur due to advertising practices.

What is not covered, however, are injuries that happen to anyone that you employ. That type of insurance is known as worker’s compensation.

You’re also not protected against professional mistakes so you need to remain vigilant in delivering quality service.


Before you purchase coverage, take the time to browse through multiple policies. There are some that offer very similar coverage, yet differ greatly in price.

If you buy the first general contractor insurance policy you look into, then you’re most likely going to waste money that could be better spent elsewhere.

Also, avoid getting caught up in options that offer exceptionally low monthly payments. These typically have a very high deductible.


Your deductible is the amount you pay in the event you need to use your insurance. After you pay this amount, your insurance covers the rest.

As previously mentioned, coverage with low monthly payments often has a high deductible. Sometimes, this amount may be too much to make that coverage worth it, even in the event of an accident.

Most of the time, it’s best to compromise with a policy that is right in the middle of the road in terms of monthly payments and deductibles.

Coverage with a high deductible and low monthly payment can be a solid option if you have never had to use your insurance before during your career.

Completely Understand Your Policy

The deciding factor on what type of coverage you should choose is how well you understand it.

Insurance agreements are often filled with complicated jargon that the average person has a hard time comprehending.

If you encounter a policy that is clear and straightforward with coverage and other important factors, give it serious thought. It may be the right one for you.

Obtaining General Contractor Insurance Doesn’t Have to Be Difficult

All it takes is a bit of time and effort. Then, you’ll be well on your way to having the security of solid insurance coverage.

For more information on best practices for general contractors, check out our blog.

Top Contractors Insurance Services is a full-service contractor insurance agency handling workers compensation, general liability, construction bonds, and auto quotes.