Essential Insurance Coverage for Contractors: Protecting Your Business and Projects

As a contractor, your work is demanding, unpredictable, and filled with risks—both on and off the job site. Whether you’re building custom homes, renovating commercial properties, or managing large-scale infrastructure projects, the right insurance coverage is essential to protect your business from financial loss and legal issues.

At Dowd Insurance Agency, we understand the unique risks contractors and construction companies face. Our commercial accounts manager, Peter Khoury, is a certified Construction Risk Insurance Specialist (CRIS) through the International Risk Management Institute. With his specialized knowledge of construction risk management and insurance, Peter ensures our contractor clients have the tailored coverage they need.

What Insurance Coverage Do Contractors Need?

Every construction project is different, but here are the essential types of insurance coverage every contractor should consider:

1. General Liability Insurance

General liability insurance is the foundation of contractor coverage. It protects your business from third-party claims related to bodily injury, property damage, and advertising injury. For example, if a client or passerby is injured at your job site, this coverage can help cover medical costs and legal fees.

2. Commercial Auto Insurance

Many contractors rely on trucks, vans, or heavy equipment to get the job done. Commercial auto insurance covers vehicles used for business purposes, protecting against accidents, property damage, and liability claims. Unlike personal auto policies, commercial auto insurance is designed to handle the higher risks associated with work vehicles.

3. Workers’ Compensation Insurance

If you have employees, Texas law generally requires you to carry workers’ compensation insurance. This coverage provides medical benefits and wage replacement for workers injured on the job, protecting both your employees and your business from costly claims.

4. Builder’s Risk Insurance

Construction sites are full of potential hazards, from fire to theft to severe weather. Builder’s risk insurance covers the structure and materials while a project is under construction. If a storm damages a partially built home, for example, this policy helps cover the costs of repairs and replacements.

5. Professional Liability Insurance (Errors & Omissions)

Mistakes and oversights can happen, even to the most experienced contractors. Professional liability insurance, also known as errors & omissions (E&O) insurance, covers claims related to design flaws, miscalculations, or contract disputes that result in financial losses for your clients.

6. Inland Marine Insurance

Standard property insurance may not fully cover tools and equipment transported between job sites. Inland marine insurance protects valuable equipment like power tools, generators, and heavy machinery against theft, damage, or loss in transit.

7. Umbrella Insurance

For contractors handling large-scale projects, the limits on standard liability policies may not be enough. Umbrella insurance provides extra coverage beyond your general liability, commercial auto, and workers’ compensation policies, offering an added layer of protection against major claims and lawsuits.

Why Work with an Insurance Agent Who Specializes in Construction Risks?

Contractors face unique risks that require specialized coverage. Many general insurance agents may not fully understand the complexities of construction projects, leaving you vulnerable to gaps in coverage. That’s where Peter’s expertise as a Construction Risk Insurance Specialist (CRIS) makes a difference.

Peter’s in-depth knowledge of construction insurance allows him to:

• Identify coverage gaps that could put your business at risk
• Customize policies based on your specific projects and business needs
• Ensure compliance with contract requirements and industry regulations
• Advocate for you in case of claims or policy changes

Protect Your Business with Dowd Insurance Agency

At Dowd Insurance Agency, we don’t just sell insurance—we partner with contractors to provide risk management solutions that keep your business protected. Whether you’re a general contractor, subcontractor, or specialty trade professional, our team is here to ensure you have the right coverage for every project.

Ready to safeguard your construction business? Contact us today to speak with Peter Khoury and get a customized insurance plan tailored to your needs.

Call Dowd Insurance Agency at 512-331-0787 or visit www.dowdinsurancetx.com to learn more.