Every contractor needs protection against unexpected events and accidents that can happen on the jobsite. Safety rules and safety training are just two ways that contractors try to make their work areas as safe as possible. To protect the company against financial loss due to an accident or incident, contractors take out liability insurance. The broad reach of contractor liability insurance can help a contractor to handle an important issue without having to go out of business.

Contractors can protect their money with liability insurance.
What Is Contractor Liability Insurance?
Investopedia.com provides a concise definition of contractor liability insurance, saying that it protects against errors that can occur during a construction project. While every contractor would like every project to go according to plan, the simple fact is that accidents happen and the contractor is responsible for those accidents. With contractor liability insurance in place, the contractor can handle those accidents without the fear of significant financial loss to the company.
What Does Contractor Liability Insurance Cover?
According to About Money, contractor liability insurance covers a wide variety of claims that can be levied against any contractor. The four primary areas of coverage are injuries, property damage, defective products, and copyright infringement. The injuries portion of a contractor liability policy covers expenses such as medical costs, long-term treatment and, in the unfortunate event of a fatal injury, funeral expenses.
Property damage could be damage sustained by company equipment, or it could be damage done by the contractor’s workers to private property. For example, if a crew damages a wall that was not supposed to be touched during a renovation project, then the liability insurance will pay to repair the wall.
Defective products coverage applies to anything a contractor may install on a site that causes damage of any kind. For example, if a contractor installs a pump to keep water out of an area and that pump explodes, the liability insurance will cover the costs for repairs and any injuries.
Innovative contractors that publish industry-related materials or trademark certain processes will be protected by the copyright infringement portion of contractor liability insurance. This also applies to instances where a contractor releases a product that is very similar to a competitor’s product and the competitor decides to sue.

Protect your company by taking out contractor liability insurance.
Does My Company Need Liability Insurance?
Is it extremely risky for a contractor to do business without liability insurance, simply because of the potential for devastating financial loss. It should also be noted that most job owners, especially state and federal governments, require a contractor to have liability insurance before they can begin work.
You will learn more about liability insurance in the commonwealth of Massachusetts when you sign up for supervisor licensing courses from Massachusetts Contractors Academy. You will get all of the classes you need to pass your licensing test and will not have to pay for any of those classes until you have completed them. Advance your career today by signing up for the Massachusetts Contractors Academy.
George N Root III is a professional freelance writer who has expertise in topics such as Internet marketing, business, advertising, and personal finance.