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5 Unexpected Risks General Contractor Insurance Covers


Are you looking for ways to protect your contracting business from liability? Do you want to make sure that you, your company, and your clients have financial protection in case of an emergency? If so, then you need to learn all that you can about general contractor insurance.


As the name would imply, this is insurance for builders who, by investing in a policy, will have protection against common setbacks such as stolen equipment, lawsuits, injuries to workers, property damage, and more.


See below for an in-depth guide that explains all of the risks that general contractor insurance can protect you from.


1. Property Damage

Imagine the horror of receiving a phone call that one of your crew members accidentally damaged your client's property while performing a job. As a result, the damage will cost thousands of dollars to repair.


Without proper general contractor insurance in place, your company will be held financially liable for all of the costs associated with that accident. Those are the kinds of costs that can put your business in a hole you'll never be able to financially recover from.

If your client doesn't receive compensation for those damages, then they might have grounds to file a lawsuit against your company, one of the biggest business risks of all.

Fortunately, you can invest in general contractor insurance to avoid such a fiasco. By doing so, you and your clients will have protection from financial liability and be able to fix the issue in no time at all.


General contractor insurance can help to protect the business relationship between you and your client. You'll always have a way to help them recover those damages. Worst-case scenario, if the client tries to pursue a lawsuit, then your insurance will also pay for the lawsuit so that you can continue to focus on your business operations.


2. Worker Injuries

No business owner wakes up expecting to deal with injuries. No worker wakes up worried about the risk of their job or the injuries that they might suffer while working that day. They've done the same thing hundreds (if not thousands) of times.


Even still, construction jobs are among the riskiest careers in all of Corporate America. In fact, a 2019 Census study gathered that the construction industry has more fatalities than any other occupation or industry in the United States. Anything can happen.


For that reason, it's dangerous to allow your workers to step on a job site without workers compensation insurance in place. Not to mention, it's illegal. Federal and state laws require all employers to carry some form of workers' compensation, to ensure financial protection for the worker and their family.


If your company is revealed to not have workers' compensation at the time of an injury, it could spell financial disaster for your company.


Not only will you be held financially liable for the workers' expenses, but there will also be harsh state and federal penalties. In some instances, the state might require you to pay back two times as much as the amount that you would've paid if you'd had insurance coverage all along.


To summarize this header up: be sure to invest in workers’ compensation insurance to ensure your workers are covered from injury.


3. Stolen Equipment

You'd be surprised what goes missing on a job site. Lately, many construction workers have taken up side gigs to work on renovation projects for friends and family. To avoid paying for the equipment themselves, they might just take it from your site.

The types of stolen equipment would shock you. Studies show that some of the most commonly stolen items from construction sites include:

  • Copper items

  • Lumber items (especially with the skyrocketing prices of lumber today)

  • Heavy machinery

  • Small tools

  • Power tools

As you well know, those expenses can add up. You don't want to have to pay out of pocket for things you've already paid for. Fortunately, insurance for builders will cover that expense for you!


4. Customer Injuries

You'd never expect a customer to get injured while you're on the job. However, something as harmless as a toolbox on the ground can spell catastrophe if a client trips over it.


Many costs can follow an injury to a customer, such as costs of their medical bills, lost wages, and long-term disability.


Thankfully, your insurance for builders will cover all of these situations. The client will file a claim directly through your provider so that you don't have to be involved in the settlement at all.


Invest in General Contractor Insurance Today

Now that you have seen an in-depth guide on how to invest in general contractor insurance and the benefits it can offer you, be sure to use this information to your advantage.


Be sure to read this article for more information on Central Carolina Insurance and why we're the best fit for your general contractor insurance needs.


For more inquiries, please be sure to reach out to us via our contact us page and we will be happy to assist you further.

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