What does insurance primarily protect contractors against?

Insurance primarily protects contractors against risk. In the context of contracting, this encompasses a wide range of potential liabilities and exposures, such as injuries, property damage, and other unforeseen events that could arise during the course of a project.

By obtaining insurance, contractors can mitigate the financial impact of these risks, ensuring that they are covered in case of accidents, legal claims, or other issues that could lead to significant financial loss. Different types of insurance, such as general liability insurance, workers' compensation, and professional liability insurance, help provide a safety net for the various risks associated with construction activities.

The other options, while related to aspects of business operations, do not capture the broad protective function of insurance in a contractor's overall risk management strategy. Loss of income is typically addressed through business interruption insurance but is not the primary focus of general contractor insurance. Property damages are included under insurance protection, but this is a narrower category of risk. Employee theft is a specific risk that can be covered under a fidelity bond or crime insurance, but again, it does not encompass the broader range of risks that insurance protects contractors against.