Which insurance is important for contractors in case of employee injuries on the job?

Workers Compensation Insurance is essential for contractors because it specifically covers medical expenses and lost wages for employees who suffer injuries while on the job. This type of insurance helps ensure that employees receive the necessary treatment and financial support without them needing to prove fault or negligence on the part of the employer. It not only protects workers but also shields contractors from potential lawsuits related to workplace injuries.

While General Liability Insurance covers a broader range of risks associated with property damage and bodily injury to clients or third parties, it does not specifically address employee injuries. Umbrella Liability Insurance extends coverage above existing policies but is also not tailored to workplace injuries. Liability Insurance is a general term that may encompass various forms of insurance, but it does not specifically provide the protections that Workers Compensation offers to protect employees and their employers in the event of on-the-job injuries.