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Professional liability insurance is a type of business insurance that provides coverage for professionals and businesses to protect against claims of negligence from clients or customers. Professional liability insurance typically covers negligence, copyright infringement, personal injury, and more.
The first thing you should do when hiring a contractor is to ask to see their certificate of insurance. If they don't have it, they can call their insurance agent and ask them to send it to you. A certificate doesn't provide all the insurance details, but it's a good start.
Employing a contractor with an active workers' compensation insurance will save you from any financial liabilities in case someone gets hurt while working on your property. Ultimately, hiring a general contractor who has all the necessary insurance coverage in place gives you peace of mind.
General liability covers physical risks, such as bodily injuries and property damage. Professional liability insurance covers more abstract risks, such as errors and omissions in the services your business provides.
One way to do this is to ensure that the contractors you hire are fully insured in case something goes wrong. Most reputable contractors will have insurance that covers them in the event of an accident or property damage, but it is always a good idea to ask for proof of contractors insurance before hiring anyone.