What type of insurance is mandatory for North Carolina Residential General Contractors?

Worker’s compensation insurance is indeed mandatory for employers in North Carolina, including residential general contractors, to cover job-related injuries and illnesses for their employees. This is crucial for protecting both the employees and the contractors themselves from liabilities due to workplace accidents.

Health insurance is not required for residential general contractors, though offering it may be beneficial for attracting skilled workers.

General liability insurance provides coverage for a contractor against claims of bodily injury, property damage, and personal injury that might occur during the course of their work. In North Carolina, while it is not mandated by law, it is highly recommended and often required by clients or project owners as a standard practice. This type of insurance protects contractors from ceding significant losses and legal expenses due to potential lawsuits.

Property insurance, while important for protecting physical assets, is not specifically mandated for general contractors in the state.

Given these points, understanding the nuances of required coverage emphasizes the importance of general liability insurance as not only a safeguard for contractors but also as a professional expectation in the industry.