Contractors Liability Insurance: Essential Coverage for Alabama’s Small Contractors 

As a contractor, you often take on significant financial risk when agreeing to do a job. Even relatively small projects or tasks with which you may be especially experienced could go awry, potentially threatening expensive monetary consequences. Situations in which you’re liable for someone’s losses can be particularly costly, as you may be responsible for compensation and face lawsuits. Fortunately, a properly assembled insurance package can address these issues and offer financial security.

What is Contractors Liability Insurance?

Although the term “contractors liability insurance” may imply it’s a specific type of policy, it may actually refer to a combination of several types of coverage. As a contractor, you may find yourself in a variety of situations in which you’re at fault for losses, and addressing these different scenarios could require multiple policies.

What Types of Insurance Do I Need?

When addressing your liability-related coverage needs, even smaller contractors may need to purchase a robust and versatile combination of insurance policies. Specifically, the following may prove to be critical investments:

• General liability insurance can help pay for third-party bodily injuries, property damage and personal and advertising injuries for which you’re at fault.

• Professional liability insurance, also known as errors and omissions insurance, can help you respond to accusations of faulty work, inaccurate advice, missed deadlines or other issues related to allegedly substandard work.

• Commercial auto insurance is typically required by law and may help pay for third-party losses if you cause an accident while operating a motor vehicle.

• Employers’ liability coverage is a key aspect of workers’ compensation insurance and may financially assist your company and employees in managing the financial ramifications of on-the-job injuries and illnesses.

• Commercial umbrella insurance may help cover outstanding losses if the coverage limits of other policies, such as general liability insurance, are exhausted.

• Surety bonds can compensate clients if you’re unable to complete a job as agreed upon.

We’re Here to Help

If you’re a contractor in Athens, AL, contact SOS Insurance Agency today to discuss your coverage needs and find the right policies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.