As a contractor, you know that insurance is an important part of running your business. You may have heard about public liability insurance and what it does, or you might only be familiar with the terms “contract works” and “general property” insurance.

It can get confusing to make sure that you have the right type of cover at the right time for your project or job site. To help make sense of it all, here’s what these different types of insurances mean for contractors, and why you need them:

Public Liability

Public liability insurance covers injury to third parties, such as your customer’s employees or other contractors. If you accidentally cause damage to someone else’s property, the public liability policy will pay for the repairs. It will also cover legal costs if you are sued for damages and held liable for an employee’s actions.

public liability insurance mistakes

The importance of public liability insurance cannot be overstated—it is one of the most important forms of construction insurance that any contractor needs to operate legally in their state or country. Without it, contractors’ risk being held liable personally and financially if they cause injury or property damage on a project site.

Contract Works Insurance (also referred to as Construction or Project Insurance)

Contract Works Insurance (also known as Construction or Project Insurance) covers the cost of repairing any damage to your project while it’s being built. This can include things like faulty materials and faulty workmanship, as well as damage caused by fire and theft. Contract works insurance is also designed to cover you against delays in completion, although there are limits on how long you’re covered for this.

Contract works insurance is also referred to as contractor’s all risk liability insurance, meaning it covers all risks associated with building a property except where an exclusion applies (such as terrorism).

General Property Insurance

General property insurance is one of the most important types of commercial insurance for contractors, because it protects you from losses due to damage or destruction to your business’s real property. For example, if a fire destroyed your office building and all its contents, this type of policy would cover the cost to rebuild them. It also covers any fixtures that are attached to your buildings like sinks or toilets, as well as any personal property inside those buildings.

When considering general property insurance for contractors, there are several factors that you should consider:

  • Whether it’s required by law in your state.
  • Whether you have enough coverage.
  • The amount of coverage available at different rates (how much does more coverage cost?).
  • If there are any exclusions or restrictions on certain types of losses.

Vehicle Insurance

Vehicle insurance is a legal requirement and it’s important to have it, as you can be fined by the police if you don’t. This type of cover will cover damage to your vehicle, damage to other people’s property and medical expenses for you and anyone else involved in an accident. It’s probably one of the most common types of insurance that contractors need as they drive from site to site during their working day.

What Type Of Insurance Do Contractors Need

The cost depends on factors such as:

  • The model year of your car or van
  • How old it is (the older it is, the cheaper the insurance)
  • Who owns the vehicle (if you own it then usually it will be cheaper than if someone else does)?

The best way to get a quote online is through comparison websites like Go Compare or Confused; these sites will compare quotes from multiple companies so you can get an idea what different companies charge before deciding which one suits your needs best. Feel free to give us a call for more information.

Income Protection Insurance

This type of insurance is also known as personal accident, income protection or permanent total disability. It covers you if you are unable to work due to an illness or injury that prevents you from performing your job duties.

Income Protection Insurance replaces a portion of your income in case of a loss that prevents you from working because:

  • You have an accident or illness
  • Your business closes down or goes bankrupt
  • You suffer from long-term unemployment (unable to find new employment)

Income protection insurance

Contractors and tradespeople should seriously consider their need for public liability insurance along with other insurances such as contract works, vehicle and income protection.

As a contractor or tradesperson, you should seriously consider your need for public liability insurance along with other insurances such as contract works, vehicle and income protection.

It is important to get the right cover for your business. We can help you find the right insurance company and tailor-made policies for your requirements.


If you are a contractor, we hope this article has helped to give you some insight into the different types of insurance that you might need for your business. If you would like any further information about these or any other aspects of contractors’ insurance, please contact us today!