What type of insurance is typically required for a commercial contractor?

General liability insurance is essential for commercial contractors as it provides coverage for a range of risks that could arise during the course of business operations. This type of insurance protects contractors from claims involving bodily injury, property damage, or personal injury caused by their work or that of their employees. For example, if a client or a third party were to sustain injuries or suffer property damage due to the contractor's operations, general liability insurance helps cover legal costs, settlements, or judgments.

While other types of insurance, such as workers' compensation or property insurance, are also important, they serve different purposes. Workers' compensation insurance specifically covers employee injuries on the job, and property insurance protects physical assets from damages. Health insurance is employee benefit coverage that is typically provided to staff but does not directly address potential liability issues that arise from contracting work. Thus, for a commercial contractor, securing general liability insurance is crucial for managing the risks associated with their business activities.