General contractor insurance in North Carolina

If you own a construction or home improvement business in North Carolina with three or more employees, your business is required to carry workers' compensation insurance.

Workers' compensation insurance covers medical bills and disability benefits when an employee is injured on the job or develops an occupational illness. It's a key policy for the construction industry and related fields due to the hazards of working with heavy equipment and machinery.

Sole proprietors may not need workers' comp for their North Carolina general contractor license, but it's still a good idea to carry this coverage. Personal health insurance doesn't cover work-related injuries, so it can save you from out-of-pocket medical expenses.

If your business owns a vehicle, you must carry commercial auto insurance that meets the state's minimum requirements for auto liability insurance.

Commercial auto insurance protects business vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.

General liability insurance is the foundation of a general contractor’s protection. It covers accidents that damage a client's property or cause a bodily injury, along with libel and other advertising injuries.

Contractors in North Carolina may be required to have this policy depending on the counties they work in and the type of work they do, as well as to sign a commercial lease or meet the terms of a client's contract. Adding commercial umbrella insurance can boost the coverage limits on commercial general liability insurance and other policies.

Licensed contractors who work independently or own a small company often qualify for a business owner’s policy. This policy bundles general liability coverage with commercial property insurance at a discount.

A BOP is the top policy recommended by Insureon's expert agents, as it offers protection against common liability claims and business property coverage at an affordable price.

Contractor’s tools and equipment insurance protects a general contractor’s saws, nail guns, drills, and other construction equipment. Look to this policy or inland marine insurance to protect equipment that moves from place to place.

Professional liability insurance provides protection when a general contractor is sued for a professional mistake, such as a missed deadline on a construction project. This policy is also called errors and omissions (E&O) insurance.

Surety bonds guarantee reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.

Builder’s risk insurance can cover fires, vandalism, equipment theft, and other damage done to a structure still under construction. Project owners may require this coverage for contractors and subcontractors, or you may be able to join their policy as an additional insured.

Depending on the counties or cities your business operates, you may be required to carry this coverage.

Contractors pollution liability insurance covers costs related to pollution, such as a lawsuit alleging harm caused from exposure to silica dust on a construction job site. It's sometimes referred to as environmental insurance.