What type of insurance is required for home builders in Alabama?

General liability insurance is essential for home builders in Alabama as it protects against claims of bodily injury, property damage, and personal injury that can arise during the course of construction. This type of insurance is crucial because it covers legal costs and settlements if a third-party is injured on the job site or if there’s damage to someone else’s property due to the builder's operations.

In the construction industry, where various risks are inherent, having general liability insurance helps home builders manage their financial responsibilities and maintain their business's credibility. It reassures clients that the builder is committed to safety and responsible practices, which is vital for gaining trust and ensuring compliance with state regulations.

While property insurance, workers' compensation, and automobile insurance can also be important for builders, they don't specifically address the liability risks associated with construction activities in the same way that general liability insurance does. Property insurance focuses on the physical assets, workers' compensation covers employee injuries, and automobile insurance pertains to vehicles used for business purposes.