Scroll Top
405 S. Cascade Ave #101, Colorado Springs, CO 80903

Understanding the Key Insurance Requirements for General Contractors

Image of male contractors hands writing general contractor insurance requirements on them.

The construction industry is full of risks. For example, 1 in 100 construction workers gets severely injured each year. Having adequate insurance coverage ensures that you, your business, and your workers are protected from anything that might arise.

This blog will discuss the general contractor insurance requirements to ensure you’re properly covered in the Colorado Springs area. We’ll also talk about where you can go to get the best rates possible on general contractor coverage.

General Liability Insurance

General contractor liability insurance is the main policy you need to ensure you have. This type of insurance for contractors covers claims in some of the following areas:

  • Property damage
  • Bodily injury
  • Advertising or personal injury, such as slander or libel

A general liability insurance policy may also cover court fees, attorney costs, and settlements if your claim goes down that route. You can also explore adding on commercial umbrella insurance coverage to boost your general liability insurance policy and others.

Workers’ Compensation Insurance

You need to get a workers’ compensation insurance policy if you own a construction business with more than one employee in Colorado. This type of contractor insurance policy protects your business and your workers. It provides them with benefits if they suffer an illness or injury because of their job.

Some of the things that may be covered under this policy include:

  • Lost wages
  • Medical costs
  • Disability benefits
  • Ongoing care
  • Work-related injury or illness fees for the employer

Business Owner’s Policy

Some general contractors who own a small company or work independently may qualify for a business owner’s policy (BOP). What’s great about this type of policy is that it bundles several contractor insurance policies together, such as:

  • General liability coverage
  • Commercial property insurance

Commercial Auto Insurance

Your personal auto insurance usually doesn’t cover vehicles that you only use for work purposes. You need to invest in a commercial auto insurance policy for cars or trucks that you use for your business. You may need a commercial auto insurance policy if you meet some of the following criteria:

  • You’re self-employed and use a vehicle for your work
  • You own a vehicle and pay another person to use it
  • You pay your employee to use their vehicle for work

Keep in mind that contractors who aren’t employees of your construction business are required to carry their own insurance policy. A few elements that might be included in this type of coverage are:

  • Property damage and bodily injury liability insurance
  • Medical payments
  • Collision coverage
  • Comprehensive coverage
  • Uninsured motorist

Get Help Learning the General Contractor Insurance Requirements

It can be challenging to stay on top of general contractor insurance requirements when running a business in Colorado. That’s why it’s important to work with a qualified insurance company. They can help you get the best rates while ensuring you’re properly covered.

Your Insurance Lady in Colorado Springs is here to help protect your construction business from risks. We can help you get quotes for general liability insurance, workers’ comp, and more. Contact our office to get started on your insurance quote.

Leave a comment