Why General Contractor Insurance Matters for Claims, Lawsuits, and Accidents

Nate Jones, CPCU, ARM, CLCS, AU
Jan 23
2 min read

Running a general contracting business comes with significant risks—from jobsite accidents and property damage to potential legal claims from clients or subcontractors. Without the right insurance, these incidents can lead to costly lawsuits, lost revenue, and even business closure.

General contractor insurance protects your business by covering claims, lawsuits, and accidents, giving you peace of mind while you focus on completing projects safely and efficiently. Wexford Insurance specializes in helping contractors get tailored coverage for their unique risks.

How Claims, Lawsuits, and Accidents Impact Contractors

1. Jobsite Accidents

Construction and contracting involve heavy machinery, elevated work, and hazardous materials. Common accidents include:

Employee injuries from falls or equipment
Third-party injuries on client property
Vehicle accidents involving company trucks or subcontractors

These incidents can lead to workers’ compensation claims, medical expenses, or legal liability.

2. Property Damage

General contractors are responsible for client property while performing work. Accidental damage to structures, fixtures, or vehicles can result in substantial repair costs and liability claims. General contractor insurance typically covers these damages, protecting both your business and your clients.

3. Legal Claims and Lawsuits

Even when accidents don’t occur, contractors may face lawsuits for:

Breach of contract
Faulty workmanship
Negligence claims

Without proper insurance, legal defense costs and settlement amounts can severely impact your business finances.

Key Components of General Contractor Insurance

General Liability Insurance – Covers bodily injury, property damage, and legal defense costs.
Workers’ Compensation – Protects employees injured on the job.
Commercial Auto Insurance – Covers company vehicles used on projects.
Professional Liability / Errors & Omissions – Protects against claims of faulty workmanship or project delays.
Tools and Equipment Coverage – Replaces damaged or stolen tools essential to your business.