What type of insurance must home improvement contractors maintain?

Home improvement contractors are required to maintain general liability insurance to protect themselves and their clients from any claims or lawsuits that may arise from their work. This type of insurance covers damages to property or injuries to individuals caused by the contractor's work, products, or operations. It ensures that both the contractor and the homeowner are financially protected in case of accidents or damages that occur during the home improvement process.

While workers' compensation insurance is critical for contractors with employees to cover work-related injuries, general liability insurance focuses on protecting against third-party claims, which is why it is specifically emphasized for home improvement contractors. Other types of insurance mentioned, such as property insurance and health insurance, do not directly address the liabilities associated with home improvement projects. Property insurance is usually for the contractors' physical assets, and health insurance pertains to medical coverage for individuals, making general liability insurance the most relevant and necessary type for home improvement contractors.