Yes, you do. Any business that deals in high-risk and related activities, such as construction, should have appropriate levels of insurance in place. Otherwise, you run a serious risk of bankruptcy — if there’s a judgment against your company — or worse, exposure of the owners personally.
Related: Top Seven Mistakes Business Owners Make Filing Insurance Claims
As to other legal factors, you’ll want to take steps to reduce your risk exposure. These include: forming a separate business entity, having a written contract for all of your jobs and complying with any health or safety regulations that are relevant to your business. Don’t overlook codes and regulations concerning sanitation and disposing of hazardous materials.
As to the business itself, you’ll want a clear understanding with your business partner about decision-making, capital contributions and why each of you might leave the business — which you’d address in a partnership agreement. A local attorney who understands the construction industry should be able to help you with these items