Do General and Independent Contractors Need Different Types of Insurance?

General contractors typically oversee entire projects, manage subcontractors and are responsible for the overall completion of a job. Independent contractors are usually hired to perform specific tasks or trades, often working under the direction of a general contractor or directly for a client.

Because of these differences in roles and responsibilities, insurance needs can vary.

General contractors often require broader coverage, including general liability, workers’ compensation (if they have employees), builder’s risk and sometimes commercial auto insurance. They may also need surety bonds to meet project requirements.

Independent contractors may need general liability insurance to protect against third-party claims, professional liability (especially for specialized trades) and tools and equipment coverage. If they have employees, workers’ compensation may also be necessary.

Why Insurance Needs Differ

The scope of work, contractual obligations and risk exposure influence the type and amount of insurance required. For example, general contractors are often contractually obligated to carry higher liability limits and additional coverages due to their oversight of entire projects. Independent contractors may have more flexibility, but still need to meet the insurance requirements set by clients or general contractors.

How We Can Help

Our team at Gamecock Insurance Agency specializes in helping South Carolina contractors (general and independent) navigate their insurance options.

Contact us today to discuss your contractor insurance options with our experienced team.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.