Insuring Contractors: What You Need to Know

contractors looking at paper with safety helmet on desk

If you’re a contractor, it’s important to understand the importance of insurance. Insurance is a way to protect yourself and your business from financial loss in the event of an accident or other unexpected event. In this article, we’ll cover some of the key things you need to know about insuring contractors.

Types of Contractor Insurance

There are several types of insurance that contractors should consider:

  • General Liability Insurance: This type of insurance provides coverage for bodily injury, property damage, and other types of third-party claims that may arise from your work as a contractor.
  • Professional Liability Insurance: Also known as errors and omissions insurance, this type of insurance provides coverage for claims that arise from alleged professional errors or omissions.
  • Workers’ Compensation Insurance: This type of insurance provides coverage for medical expenses and lost wages for employees who are injured on the job.
  • Commercial Auto Insurance: If you use vehicles for your business, you’ll need commercial auto insurance to provide coverage for accidents or other incidents that may occur while on the road.
  • Umbrella Insurance: Umbrella insurance provides additional liability coverage beyond the limits of your other policies.

Why Contractor Insurance is Important

Contractor insurance is important for several reasons:

  • Protects Your Business: Insurance can help protect your business from financial loss in the event of an accident or other unexpected event.
  • Meets Legal Requirements: Depending on your state and industry, you may be required to carry certain types of insurance.
  • Provides Peace of Mind: Knowing that you’re protected in the event of an accident or other unexpected event can provide peace of mind and allow you to focus on your work.

How to Get Contractor Insurance

Getting contractor insurance is relatively easy. Here’s what you need to do:

  1. Determine what types of insurance you need based on your industry and specific business needs.
  2. Shop around for insurance providers and compare quotes to find the best deal.
  3. Work with your chosen provider to determine the specific coverage limits and policy terms that are right for you.
  4. Make sure to review your policies regularly to ensure that you have adequate coverage and to make any necessary updates.


Insuring contractors is an important part of protecting your business and ensuring that you’re prepared for unexpected events. By understanding the types of insurance available and working with a reputable provider, you can ensure that you have the coverage you need to operate your business with confidence

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Avon Insurance Associates Inc.
6319 E US Hwy 36 #7 Suite 100
Avon, IN 46123

(317) 718-1747