Which types of insurance should a contractor consider obtaining?

A contractor should prioritize obtaining general liability and workers' compensation insurance because these two types of coverage are essential for protecting against the specific risks associated with construction work.

General liability insurance is crucial as it helps cover claims of bodily injury or property damage that may occur during the construction process. This insurance can protect contractors from financial losses resulting from accidents that happen on the job site, such as a client or a bystander getting injured while work is in progress.

Workers' compensation insurance is equally important, as it provides coverage for employees who may be injured while performing their duties. It covers medical expenses and provides wage replacement for injured workers, ensuring that they receive necessary support without the contractor facing substantial financial burden due to workplace accidents.

In contrast, while health insurance and auto insurance (mentioned in another option) are important for personal well-being and vehicle protection, they do not specifically address the liabilities and risks associated with construction projects. Similarly, property insurance and business insurance cover certain risks but do not encompass the broad protection that workers’ compensation and general liability insurance provide in a contractor's business landscape. Home insurance and rental insurance focus on residential property and personal belongings, which are not relevant to a contractor's operational risks.