Minimum Insurance Requirements for General Contractors

Carrying the right insurance policies is highly important if you’re a general contractor. Whether you’re working on residential houses, commercial projects or renovations, state law and client contracts require contractors to have specific coverage. Understanding what’s required and what’s worth adding can help you stay compliant.

What Policies Should My Business Have?

Depending on your circumstances, our agents typically recommend the following:

• General liability insurance covers claims of third-party bodily injury and property damage that arise from your work.
• Workers’ compensation insurance is required by Ohio law for employers with one or more employees. It covers medical expenses and lost wages if an employee is injured or becomes ill due to a workplace incident.
• Commercial auto insurance covers vehicles used for business purposes against damage caused by accidents, fire, natural disasters, theft or vandalism.
• Builders risk insurance covers structures under construction against damage from fire, theft, vandalism and certain weather events.

Additional Policies to Consider

You may benefit from adding professional liability insurance, which covers claims related to errors or omissions in your work. Umbrella insurance can also extend the liability limits of your primary policies. A business owners policy bundles general liability, business interruption and commercial property coverage into one convenient package and may be appropriate for smaller companies.

Why Insurance Compliance Matters

Operating without proper coverage can result in lost bids, project delays and high out-of-pocket costs if a claim arises. Purchasing the necessary policies helps your business stay competitive and financially protected throughout each project.

Garlesky Insurance Agency works with multiple carriers to find coverage that fits your business. Contact us today to request a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.