Contractor Liability Insurance — also called General Liability — is one of the most important forms of protection construction professionals can carry. It shields your business from claims involving property damage, bodily injury, and other incidents that happen during your work.

On any job site, accidents can happen quickly. Maybe a piece of equipment damages a client’s property. Maybe a visitor trips over materials. Maybe your work leads to unexpected damage in a finished space. Liability insurance ensures a single mistake doesn’t turn into a financial disaster.

General Liability coverage typically includes bodily injury, property damage, medical payments, legal defense, and completed operations. Completed operations coverage is especially important for contractors. It covers you if a problem arises after the work is done — for example, a pipe you installed years earlier that suddenly leaks and causes damage.

Without this coverage, contractors would face enormous risk exposure. Lawsuits can escalate quickly, and legal representation alone is expensive. General Liability ensures your business can defend itself and stay financially stable.

Another critical component is proof of insurance. Most builders, commercial clients, municipalities, and general contractors require certificates of insurance before allowing work to begin. A strong liability policy makes it easier to win contracts and build long-term relationships with clients.

At Red Cedar Insurance Agency, we help construction professionals find coverage that reflects the type of work they perform. A roofer, electrician, and excavator each face different risks. A tailored policy ensures you’re not paying for unnecessary coverage — but you’re never left exposed.

Contractor Liability Insurance protects your reputation, your finances, and your ability to keep working. It’s one of the cornerstones of a strong risk management plan.

Construction work is demanding, physical, and often dangerous. Even the best safety practices can’t eliminate every risk. That’s why Workers’ Compensation insurance is one of the most important protections a construction business can carry.

Workers’ Compensation provides benefits to employees who are injured or become ill because of their job. In construction, injuries can range from minor cuts to serious falls or equipment-related accidents. Workers’ comp ensures employees get medical care without delays and receive wage replacement while they recover.

But the benefits go beyond employee support. Workers’ Compensation protects your business from lawsuits tied to workplace injuries. Without coverage, even a single injury can trigger expensive legal claims that many companies can’t afford.

Michigan requires most construction businesses to carry Workers’ Compensation. But “compliant” doesn’t always mean “fully protected.” Coverage needs can vary depending on your role in the project, the size of your crew, and the equipment being used. At Red Cedar Insurance Agency, we help contractors understand their exposure and build policies that reflect real-world job site conditions.

Workers’ Compensation also reinforces your company culture. When employees know they’re protected, they feel valued — and valued employees tend to stay longer, work safer, and contribute to a stronger team environment.

Finally, Workers’ Compensation can help construction companies win more bids. Many project owners require proof of coverage before awarding a contract. Having strong workers’ comp coverage signals professionalism and responsibility.

For construction business owners looking to protect both their crew and their company, Workers’ Compensation isn’t just required — it’s essential.

Every project starts with a blueprint, materials, and a hardworking crew. But until a building is complete, it remains vulnerable to damage, delays, and unexpected hazards. Builders Risk insurance is one of the smartest investments a contractor can make during a construction project.

Builders Risk protects the physical structure while it’s under construction. This includes the foundation, framing, roofing, and even materials stored on-site or in transit. Michigan weather alone is a major reason contractors rely on Builders Risk coverage. Heavy snow, high winds, ice storms, and unexpected temperature swings can all stall or damage a project.

The coverage extends beyond weather. Theft of materials is a growing issue across job sites nationwide, including West Michigan. Copper wiring, HVAC units, lumber, tools, and packaged materials are often targeted. Builders Risk helps ensure that stolen or damaged materials don’t cause devastating financial setbacks.

Another important benefit is protection from fire, vandalism, and accidental damage. Whether it’s an electrical spark, a vehicle collision, or someone intentionally damaging the site, Builders Risk helps contractors get back on track quickly.

One common point of confusion is who actually needs to carry the coverage. In many cases, it’s the general contractor or project owner, but subcontractors can also be responsible depending on the contract. At Red Cedar Insurance Agency, we help clients understand their project obligations and ensure there are no gaps or overlaps in coverage.

Builders Risk policies can be customized. You can add coverage for temporary structures like scaffolding, debris removal, and even construction delays caused by covered losses. This flexibility ensures your policy matches the realities of your job site.

For Michigan contractors looking to protect their time, materials, and profit margins, Builders Risk isn’t optional — it’s a strategic advantage.

Managing a construction company means juggling tight timelines, heavy equipment, subcontractors, and high-risk job sites. With so many moving pieces, even the most diligent contractors face unpredictable challenges. A comprehensive insurance plan isn’t just a safety net — it’s a business essential that protects your people, your projects, and your financial stability.

Construction is one of the most risk-exposed industries. Property damage, workplace injuries, theft, weather delays, and equipment breakdowns can all derail a job. Without the right coverage, one incident can cause weeks of lost productivity or even shut a business down entirely. The right insurance plan keeps your business operational no matter what comes your way.

General Liability is usually the core of a construction insurance program. It protects your business from claims involving injury or property damage caused by your work. For example, if a client or visitor is injured on-site, or if a structure is damaged due to your team’s operations, GL coverage safeguards you against costly legal and medical expenses.

Workers’ Compensation is equally important. Construction sites are physically demanding environments with a higher chance of injuries. Workers’ comp ensures your employees get the medical care and wage replacement they need while protecting your business from lawsuits tied to workplace injuries.

Builders Risk coverage helps protect the project itself. From storms to vandalism, many things can damage a structure during the build. Builders Risk ensures materials, supplies, and the work in progress are covered throughout construction.

Equipment coverage rounds out the plan. Your tools and machinery are the backbone of your operation. If equipment is stolen from a job site or damaged unexpectedly, coverage ensures you can repair or replace it quickly without slowing down your schedule.

At Red Cedar Insurance Agency, we specialize in helping construction businesses in West Michigan get coverage that matches their operations and growth plans. Our team builds policies around real risks — not generic checklists. A comprehensive plan means peace of mind, predictable budgeting, and a stronger foundation for your long-term success.

In 2007, Milford, Iowa-based Iowa Great Lakes Sanitary District contracted with Sioux City, Iowa-based McHan Construction Inc. to complete a $14.6 million dollar addition to a wastewater treatment facility, including installation of an ultraviolet wastewater disinfectant system, according to Friday’s ruling by the 8th U.S. Circuit Court of Appeals in St. Louis in Iowa Great Lakes Sanitary District v. Travelers Casualty and Surety Co. of America; Evoqua Water Technologies.

McHan purchased an ultraviolet system from Pittsburgh-based Evoqua. It also obtained a performance and maintenance bond from Travelers Corp. unit Travelers Casualty and Surety that fully guaranteed McHan’s “faithful performance of the contract” with the district, according to the ruling.

McHan defaulted in late 2009, and Travelers and the sanitary district entered in an agreement under which the insurer agreed to complete the project with its bond “in full force and effect.”

There were startup problems involving installation of the ultraviolet system, but in November 2011, the district’s project engineer reported the project was “substantially completed,” according to the ruling.

However, there were subsequent problems with the system, including an electrical fire, according to the ruling. Travelers was asked to develop a plan to repair or replace the equipment by the end of the two-year warranty period for the equipment, which started in November 2011.

 In a May 2014 letter, the district’s engineer said the district did not wish to pursue repairing the failed equipment and asked that the system be removed and the cost of the initial purchase refunded.

The district then filed suit in U.S. District Court in Sioux City against Travelers, asserting a claim against the bond, and breach of warranty claims against Evoqua. The District Court ruled in favor of the insurer and Evoqua, which a three-judge appeals court panel upheld.

“The summary judgment record established that (the district) considered rejecting the UV system in 2010, well before the engineer certified Substantial Completion, but chose not to do so,” said the ruling, in discussing the Travelers bond.

Instead, in November 2011 the district’s engineer certified the equipment as substantially completed, said the ruling. Under Iowa law, it is a “general rule that as to known defects, acceptance of the work in the absence of fraud or mistake is a complete bar to recovery on the construction bond,” said the ruling, in quoting an earlier decision.

“In these circumstances, we agree with the district court that that “(the district) is unable to contort the contract/bond language to such an extent that it could unilaterally reject the UV unit in 2014, without showing (through expert testimony) some type of defect,” said the decision, in affirming the lower court ruling.

In December, a Safeco Corp. unit prevailed in long-running litigation with a construction company over dismissal of the policyholder’s bad faith claims in connection with the insurer’s issuance of three surety bonds.