How does general liability insurance work for contractors? This essential coverage protects contractors from third-party claims related to bodily injury, property damage, or advertising mistakes. If a client or another person is injured on the job site or their property is damaged due to your work, general liability insurance can cover the associated costs, including legal fees. It helps contractors avoid financial strain from lawsuits or claims. For more information on protecting your business, check out Biz2Insure’s Workers Compensation Insurance to ensure you have comprehensive coverage tailored to your needs.