Insurance Required and Recommended for Contractors

General contractors take on major responsibilities in the bidding and completing of construction projects. They need to minimize any exposure they might have to risk with insurance that addresses construction general liability in newton, NJ. There are policies that can be customized to help mitigate the hazards of their profession.

Having the right amount of coverage can help to limit any financial risks that may occur due to job site injuries, stolen or damaged equipment, or accidents involving vehicles occurring during the course of the construction project. You should choose your coverage based upon several factors, including the size of your company, number of workers you employ, and the type of work being performed.

General liability coverage for a number of risks

General liability insurance is a critical form of coverage that is designed to cover you for any financial risk when you are deemed responsible for actions resulting in bodily injury or property damage to others. General liability insurance is required for everyone in the construction business in order to get a contractor’s license in most states. Other policies will be needed to cover different concerns related to your operations.

This includes builder’s risk insurance that provides coverage specifically for on-site property damage of a site while under construction. Coverage limits are based on the value of the structure when completed. You’ll also need workers comp for employees that may get injured or become ill due to conditions on the jobsite. This coverage is required in most states.

Professional liability insurance is a must if part of your job is to provide consultation, designing, or if you give your professional advice as a part of your services. Commonly referred to as “errors and omissions” insurance, this coverage is for potential claims due to any loss a client may experience from services you have provided. Commercial vehicle insurance and loss of income coverage round out the list of commonly purchased products for the construction industry.

As a contractor, because you take on the possible risk of bodily injury or property damage to third parties, you need coverage for construction general liability in newton, NJ. With the right insurance in place, you can truly minimize the liabilities that can put a dent in your profits.

 

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