Types of Insurance Coverage for General Contractors

As a general contractor, your business needs to be protected from financial debts as a result of a work-related accident. Whether you’re in the business of construction, carpentry, plumbing, landscaping, painting, HVAC, or other general contractor businesses, there are a few types of commercial insurance coverage types that you should understand and be aware of, including General Liability, Workers’ Compensation, Commercial Auto, and Errors and Omissions (E&O).

General Liability Insurance

General Liability Insurance is typically the first policy that general contractor business owners purchase, because it is often needed in order to sign client contracts and commercial leases. This type of insurance covers injuries, property damage, faulty work, and any related lawsuits. General Liability Insurance is necessary for independent contractors. Here’s why:

  • It protects your business in case of a lawsuit by helping business owners cover damages and legal fees.
  • Clients want you to have it to ensure they’re not going to be held responsible for any accidents or wrongdoings.
  • It’s required by law for many industries, including construction.

Workers’ Compensation Insurance

When an employee is injured at work, workers’ compensation covers medical bills, ongoing care, recovery costs, and partial missed wages. In the unfortunate event of a death, workers’ compensation covers funeral costs and benefits for the worker’s family. In the event of a worker injury on-the-job, Workers’ Compensation Insurance helps your business:

  • Cover medical expenses and replacement wages
  • Comply with state laws
  • Pay any legal expenses in case an employee sues

Commercial Auto Insurance

If your business owns any cars, trucks, tow trucks, vans, or other vehicles, it’s important to get them covered by Commercial Auto Insurance. This type of insurance covers auto liability for any damage, medical coverage for injuries sustained, physical damage and collision coverage, and uninsured motorist coverage.

Errors and Omissions (E&O) Insurance

Just as the name suggests, Errors and Omissions (E&O) Insurance covers your general contractor business against any mistakes (errors) or oversights (omissions). If your business is being accused of mistakes, negligence and/or failure to deliver services, E&O Insurance covers your lawyer fees, court costs and settlement fees in the event of an E&O lawsuit.


If you’re a general contractor in the Hamilton, NJ area, and are in need of business insurance, get in touch with Garden State Central Insurance services. Owned and operated by Edmar D. Ortiz, our independent insurance agency can help your business get insurance coverage at an affordable rate, and provide you guidance and advocacy every step of the way. Call us at 609-587-9585 ext. 206 or request a quote today!