A basic insurance package for a new contractor would usually not include which?

A basic insurance package for a new contractor would usually not include which?

• A. General liability
• B. Workers' comp
• C. Umbrella policy
• D. Auto

Answer: (C)

The main concept here is understanding what typically comes in a basic contractor insurance package and what adds on later. A new contractor’s standard coverage usually includes general liability, which protects against common third-party claims for bodily injury or property damage tied to your work; workers’ compensation, which covers injuries to employees while on the job; and auto coverage if you use company vehicles. An umbrella policy, on the other hand, sits on top of those underlying limits and provides additional liability protection if a claim exceeds the base policies’ limits. It’s usually an optional, extra layer rather than part of a basic package for a new contractor because it costs more and is typically considered once you’ve established higher exposure or accumulated more assets. Therefore, the umbrella policy is the one not usually included in a basic package.