For a contractor, what is a major benefit of having general liability insurance?

Having general liability insurance is crucial for a contractor because it provides protection against claims of property damage or bodily injury that may occur during the course of a construction project. Such claims can be financially devastating, as they may involve legal fees, settlement costs, and repair expenses. By having this insurance, contractors can safeguard their business assets and ensure they are covered in the event of accidents or damages caused by their work, thus reducing financial risk and providing peace of mind.

While other options touch on important aspects of running a contracting business, they do not directly address the primary purpose and benefits of general liability insurance. For instance, healthcare costs for employees are typically covered under workers' compensation insurance, not general liability. Timely project completion is often influenced by management and planning rather than insurance, and marketing services may be enhanced by having insurance as a credential, but that is not the principal benefit that arises from holding general liability insurance.