What type of policy is essential for contractors to have to protect against risks associated with completed work?

General liability insurance is essential for contractors as it provides coverage that protects against various risks associated with completed work. It covers claims for bodily injury, property damage, and personal injury that may arise from the contractor's operations, including work that has already been completed. This type of insurance is crucial because it helps safeguard the contractor against lawsuits or claims related to incidents that occur as a result of their work.

In the construction industry, there are inherent risks, such as damage to a client's property or injuries to third parties that can happen after a project is finished. General liability insurance ensures that a contractor can handle such risks financially without jeopardizing their business assets. It provides a safety net that enables contractors to focus on their projects, knowing they have a layer of protection against unforeseen events that could result in significant financial burdens.

While other types of insurance—like professional liability, workers' compensation, and commercial auto insurance—are also important in their own rights, they serve different purposes. Professional liability covers errors and omissions in professional services, workers' compensation is designed to protect employees injured on the job, and commercial auto insurance is specifically for vehicles used for business purposes. Therefore, general liability insurance is the key type for addressing the broader risks associated with completed construction work.