General liability insurance for contractors protects businesses against third-party claims for property damage, bodily injury, and personal injury resulting from their operations. If a client or another party sues the contractor for damages, the general liability policy covers legal fees, settlements, and medical expenses. It can also pay for repairs or replacement of damaged property. For contractors, this coverage is essential to mitigate the risks of accidents that could occur during their work, providing financial protection and peace of mind. General liability is often a contractual requirement for many projects and business partnerships.