What is the primary purpose of insurance for contractors?

The primary purpose of insurance for contractors is to protect assets against accident and theft. This type of coverage is essential because construction and contracting work often involves significant risks, including property damage, liability for accidents on job sites, and potential theft of tools or materials. Insurance helps mitigate these risks by providing financial protection, ensuring that contractors can recover from unforeseen events that could otherwise lead to substantial financial losses.

When a contractor has insurance, it safeguards their business, equipment, and assets, allowing them to focus on their work without the constant worry of financial repercussions from accidents or damage. This protection is crucial because construction projects can be unpredictable, and having insurance acts as a safety net, ensuring that contractors can continue their operations even after an unexpected incident.