The term contractor can be used for an individual, organization or a general contractor that has a legal agreement with the owner, individual or organization for the construction of a something such as a facility, a road or a building.

A contractor can use one or more subcontractors who perform a portion of the work under that specific agreement. It is usually a requirement of insurance that if you use subcontractors then the subcontractor must provide you with proof of insurance. This is so you are not picking up an increased liability exposure for someone who hasn't bothered to purchase insurance.

A contractor can also be a consultant - this is a person who provides expert advice in a specific area or a particular domain.

Contractors need a minimum of commercial general liability (CGL) coverage. There are two types of operations covered in this liability coverage.

Depending on the type of work you do then you may need a wider form then the usual offered under the CGL. An example would be a Broad Form Completed Operations endorsement that broadens coverage provided by the CGL by narrowing the exclusion of “your work”.

Contractors also have equipment that they own, lease or rent. There can be a significant investment in tools. Be aware that your homeowner/tenant policy has limited coverage for tools and only while they are on the premises.

A contractor often has supplies including on-going inventory. You may have a workshop, a bay or a building that you occupy and need to insure. You may need coverage for installation, goods in transit, business interruption and extra expense. Every contractor has different needs.

Take the time to talk to your broker or agent. Be sure that you have at least what you need to ensure continued operations if you have a claim. You work hard to do a good job. Make sure your insurance is doing the same for you!