What Is Contractors Liability Insurance?

Shawn Plummer

CEO, The Annuity Expert

What is Contractors Liability Insurance?

Contractors Liability Insurance is a form of insurance that provides coverage to businesses in the construction industry for liability related to the contractor’s work. This insurance is vital for protecting against claims of property damage, bodily injury, and other risks that can arise during construction projects.

Examples of Coverage

  1. Bodily Injury Claims: If a third party is injured at the construction site, this insurance can cover medical expenses and legal fees.
  2. Property Damage: Covers the cost of repairs or replacement if the contractor’s work causes damage to a property.
  3. Legal Defense Costs: In case of a lawsuit, it covers legal fees and court costs.

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Contractors Liability Insurance, What Is It?

Key Features of Contractors Liability Insurance

Coverage TypesIncludes bodily injury, property damage, and legal defense.
Policy LimitsSets maximum limits for payouts on covered claims.
Coverage PeriodDefines the duration for which the policy is effective.
Specific ExclusionsDetails what types of risks are not covered.
Additional RidersOptional coverages for specific needs, like tools and equipment.


Contractors Liability Insurance is essential for construction businesses, safeguarding against various liabilities that can arise from their work. It ensures financial protection and peace of mind for both contractors and their clients. Contact us today for a free quote.

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Frequently Asked Questions

What does contractor liability insurance cover?

Contractor liability insurance covers risks associated with business operations, such as third-party property damage, bodily injury, medical expenses, and legal defense costs.

What happens if a contractor does not have liability insurance?

If a contractor does not have liability insurance, they are exposed to potential legal and financial risks for any property damage or bodily injury caused by their business operations.

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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