Things happen on construction sites. It's why insurance is a must-have item for contractors these days. Like many other places, the state of Arizona requires a contractor to submit proof they have general liability insurance (GLI) as part of their registration. While you may think GLI is all you need, there are other types of insurance you should consider if you are in the construction industry.

What General Liability Insurance Does Cover

GLI is a basic insurance policy for businesses and the bare minimum in terms of what a contractor should have. It covers bodily and personal injuries, and damage to the properties of nearby third parties not involved in the construction project. Not very many contractors have the money on-hand to pay for the care that would be needed if someone gets hurt, or if the work they are doing damages properties around the site they're working at.

Other Types of Coverage

GLI does not cover everything that could go wrong. That is why there are other types of coverage and why it is important to know what they are. With the right combination of policies, your business should be able to handle most problems that occur without taking a financial hit.

Other types of coverage that you should consider as a contractor are:

• Contractor Liability Insurance (also called Builders Risk Insurance) - covers on-site property damage that might occur during construction
• Professional Liability Insurance - valuable if you do design, consulting, or advising on projects as part of your business
• Loss of Income Insurance - valuable in case something significant happens that delays work for up to a year
• Workers Compensation - valuable in case of worker injuries
• Commercial Vehicle Insurance - valuable in case of injuries or property damage caused by company vehicles

Why Is Contractor Liability Insurance Important?

Contractor liability insurance is important because damage is bound to occur on a job site. Most of the time said damage might not be significant enough to harm the site (or the budget). What happens when the damage is that significant, though? Having the insurance may not save you the time and aggravation of fixing it, but it will keep the damage from eating away at your budget.

If you're considering additional insurance coverage, start your search with  Contractors Insurance Agency . They work with contractors, so they know what policies can help you, and what will be a waste of your time.

Have any other questions about the construction industry in Utah?  Contact us here . We're more than happy to help you find the answers.