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Let’s Bust Contractors Liability Insurance Myths!

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Contractors Liability Insurance is possibly the most important insurance you can buy for your business. Being involved in a lawsuit can end up costing you everything you own.  This insurance will protect from claims of bodily injury and/or damage to property.

There are some myths about this insurance that need to be cleared up.  Three of them are:

  1. My business is small so I don’t need it
  2. Contractors Liability covers my employees
  3. It covers me for mistakes I make

Are these true or fake?

Fake News #1: I have a small business so I don’t need it

Some small contractor business owners think that they don’t need Contractors Liability. They think that they only run a small operation and therefore it doesn’t apply to them.


The size of your business does not matter when it comes to a liability claim. Litigation is very common these days. If someone is harmed as a result of your actions, there is a strong possibility that they will sue you. Furthermore, they are also more likely to sue you because you are a business; the size of your business is not relevant.

Fake News #2: My employees are covered by my Contractors Liability

Contractors Liability covers claims for bodily injury. If someone sustains a small injury at your workplace, it will pay for medical care. If a liability lawsuit arises it will assist with your legal defence and settlement costs. Surely this means my employees are covered by my Contractors Liability?


Contractors Liability only covers third-party claims. In other words if your client or a third-party is injured it will assist.  Employees are covered by Workers Compensation.  However, this is mandatory in most states and you will face penalties if you do not have it.  This is the insurance that will assist with the medical care for your injured employee as well as loss of income.

Fake News #3: I am covered if I make a professional mistakes

Contractors Liability will protect me if I give my client bad advice or if I make a mistake.  If my client suffers a loss because of my bad advice, my general liability insurance will assist.  If the work we do is shoddy, I am protected by my insurance.


General Liability does not cover professional mistakes that you make. This is covered by Professional Liability Insurance.  It is also known as Errors and Omissions Insurance.  This is the coverage that you need if a client sues you for poor workmanship or a mistake you have made. It makes sense to have Professional Liability included in your insurance solution to protect your business.

Get your Contractors Liability Insurance here

Don’t make mistakes with your insurance.  At Contractors Liability we specialize in insurance for the building industry.  With more than 20 years in the industry, we know what you need as a contractor to protect your business.  We have access to a large network of A-rated carriers and will get you the right insurance at a price you can afford. This ISN’T a myth! Call Contractors Liability on 866-225-1950.


Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

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