The nature of a contractor’s work leaves him or her vulnerable to lawsuits and other pitfalls. The chances for errors, omissions, and poor design are but a few of the factors that can put a contractor in a situation of professional liability. Contractor’s insurance is the best way for contractors to protect themselves and their businesses in the event they are sued or are required to pay for losses or damages that occur on the job.

Ability to do business

One of the primary reasons for a contractor to obtain contractor’s insurance is that it is often impossible for a contractor to make a bid without it.  Contractors without professional liability insurance can make bids, proof of insurance is needed in order to start working on a job. So, it is financially and professionally prudent and responsible for a contractor to make sure he or she is properly insured.

Protects the business

Having contractor’s insurance can protect the business from financial disaster by protecting its assets. Contractor’s insurance will protect the business from liabilities that go beyond the scope of basic professional liability insurance. The scope of contractor’s insurance can extend to cover company vehicles, and the property as well.

Provides industry-specific coverage

General liability insurance is vague in regards to the services it covers for contractors but leaves the door open for instances to not be covered. This loophole allows insurance companies to add exclusions that suit their own needs, rather than the needs of the contractor. Contractor’s insurance is specified for the industry and covers services the contractor provides that are not specifically spelled out in general liability policies.

Protection beyond third-party coverage

Often contractors will hire third party workers such as engineers or subcontractors. Although these workers must have their own insurance, the coverage it provides is not sufficient for a contractor. Contractor’s insurance will protect the contractor from any liability that occurs from third-party mistakes, errors, or omissions.

Bodily injury and property damage

Contractors need to protect themselves and their business from the serious injury or property damage that may occur on a job site. Job sites are full of potentially hazardous equipment such as power tools and bulldozers that can cause great damage to both people and property and lead to financial devastation for a contractor. Contractor’s insurance can’t guarantee people and property will not get hurt or damaged, but it will protect the contractor from any costs associated with these serious accidents.

There is so much potential for accidents on a construction site that it is foolish for a contractor to not have the right insurance coverage. Carrying a contractor’s insurance policy can be the difference between being able to keep a business open and having to shutter the doors.

Any contractor seeking contractor’s insurance should contact Marine Agency today to explore your options and get adequate coverage today! For more information please visit the contractor’s insurance section of our website.

Contact Us


    34 W Main Street #201
    Somerville NJ 08876

    Local: 973-763-4711

    Toll-Free: 84-INSURE-NJ (844-678-7365)

    Toll-Free: 800-35-MARINE (800-356-2746)

    Northern Delaware

    1218 Pulaski Hwy, Ste 490
    Bear DE 19701

    Local: 302-834-9641

    Toll-Free: 800-681-7261

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