Contractors Are You Covered?


Working as a contractor can give you the freedom most jobs don’t. As a contractor you can set your own schedule, your own rate of pay, make your own rules, and work as much or as little as you like. But being an independent contractor also comes with responsibilities. You need to consider the insurance requirements for your particular profession. Are you an electrical contractor? A homebuilder? A writer? Most contractors need to carry liability insurance. Other types of insurance will depend upon the types of risks involved in your profession. So…contractors…are you covered?

What is Liability Insurance?

Liability insurance protects the insured from risks imposed by lawsuits and other such claims. Payment is not made to the insured but to the person suffering the loss because of the insured’s actions or lack thereof. Intentional damage is not covered by liability. Accidental damage is. Liability insurance does the following:

  • Defends: If the insured is sued for a claim that is covered under the insurance policy, the insurance company should defend the insured against the claim by paying expenses incurred.
  • Indemnifies: The insurance company should pay all the sums the insured is held responsible for, up to the limit determined by the policy.
  • Settles claims: In some cases the insurance company also holds the responsibility to settle unreasonable claims against the insured if the settlement demands payment equal to or exceeding policy limits.

What it Covers

A general liability policy usually includes bodily injury and property damage that is caused by direct or indirect actions of the insured.

Property damage: If something is damaged inside the house or on the property, for instance the contractor removed the wrong beam and the front porch collapsed, the insurance policy should pay to repair the damage.

Injury: If someone inside the house was injured due to the action of the contractor, for instance a cupboard fell on someone’s head because it was not fastened properly, the insurance will help pay their medical expenses.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more, or to get a free quotecall our Carrollton office today at 972-492-8500.