If you’re a contractor, then you know the amount of information regarding insurance on the internet is vast and difficult to maneuver for beginners. There are literally dozens of different programs and institutions you need to deal with before you even think about starting the job.

So where do you begin? What are the most frequently sought after or necessary policies to carry as a contractor? In order to be compliant in your state, as well as cover your business or any unforeseeable occurrences, the following four types should be considered.

General Liability

General liability is probably the most well-known style of insurance for contractors and the like. The types of situation that this type of insurance covers range from damage to company property to various types of claims that third-parties may make for injuries sustained due to a direct result of your corporation or institute.

What’s great about general liability is that it will also cover any courtroom costs incurred during any litigation taken against your company. This means that all legal expenses undertaken by you or fellow employees, defending the corporation, are all taken care of by the provider.

Say for instance a customer falls down a well because your construction crew failed to cover it once they were done with it. Even if you guys didn’t build the well; you guys moved it. You touched it last; no take-backs. This customer then sues you. Your lawyers’ costs and any settlement from arbitration that is taken against you are either partially or fully covered.

You want a company with a good track record in the business with plenty of reviews to look over and consider. For Californians, for instance, a popular option is Contractor General Liability Insurance from Contractorbond.org as they’ve been at the game for over twenty years. You’ll find a lot of companies eager to work with contractors interested in new construction.

Builders’ Risk

A building project has lots of equipment and materials that can all be damaged, stolen, lost, or even held hostage. Construction workers need their own coverage as all of these things could potentially cost an employee or employer tens of thousands of dollars.

Let’s say you have an employee named Rodrigo who has his personal drill stolen from his work vehicle, on site. Now, even though it was his personal drill for his own private, secretive use, his boss asked him to bring it in, making it a requirement for work.

Now even with these complicated variables, the worker is sure to be compensated for their stolen equipment underneath most builders’ risk policies. However, every plan varies from company to company and needs to be researched accurately.

Workers’ Compensation (AKA “Workers’ Comp”)

You’ve probably heard the term before “workers’ comp” but never really thought twice about it. It’s a very common type of coverage wherein accidents that occur on-the-job, disability income, rehabilitation costs, miscellaneous medical treatment, and work-related death or grave-injury compensation to families are usually covered by Workers’ Compensation.

It is a necessary policy to hold and is non-negotiable if you want your business to run compliant with federal laws. Outside of that, a single medical incident at your facility could potentially render your establishment bankrupt, as medical prices in the United States continue to skyrocket.

For example if your American multinational technology company that focuses on e-commerce’s warehouse facility is struck by a tornado, whether or not you correctly warned your staff in a timely-manner, anyone hurt or probably killed will be covered.

Pollution

Over the last twenty years, environmental laws have become very strict on businesses and builders that may directly affect nature. Third-parties are constantly suing development companies and builders for violating both local and federal laws and regulations, so Contractors’ Pollution Insurance (or CPI) is a valid and popular choice for construction and engineering corporations.

Al Gore may not know anything about what makes music good, but by god does he know a thing or two about pollution and climate change. In 1998, Al Gore endorsed and helped institute changes in the government that allowed for stricter laws and regulations on fuel emissions and general pollution by corporations.

These lawsuits can, and historically have been, detrimental to businesses, so it’s best that you cover your bases with this type of insurance coverage.