Contractor General Liability Insurance

Contractor General Liability Insurance: Construction businesses frequently perform complex, complicated, and potentially risky work. There is a high potential for causing injury or property damage to third parties. A contractor’s general liability insurance can protect contractors in these situations by providing support for legal fees and paying settlements that would otherwise be the contractor’s responsibility.

Contractor General Liability Insurance

What is General Liability Insurance?

General liability insurance helps protect against general claims by third parties. These claims typically involve bodily injuries and property damage that result from a contractor’s products, services, or operations. They can include advertising claims involving defamation.

They are in place to ensure businesses operate safely, so some claims are based on negligence, careless business practices, or unavoidable accidents. However, they protect contractors by preserving business assets and covering damages up to the policy limits for covered claims.

What Does General Liability Insurance Cover

General liability insurance covers most claims made against contractors in the following situations.

Bodily Injury

When a customer or third party experiences an injury related to your work (like tripping over some wiring), they could sue you. General liability insurance would cover court fees and potential settlements up to your coverage limits.

Personal and Advertising Injury

You may unintentionally harm another business through advertising, libel, or slander, and a general liability policy can help pay for damages to the other business.

Property Damage

While performing work, you may cause unintentional damages to the customer`s property. For example, furniture, drywall, flooring, and general liability insurance would help pay for damages.

What’s Excluded from General Liability Insurance

When you are aware of the gaps in your policy, you can take action to be sure you are not leaving yourself exposed to unnecessary risks which could cost you nig in the long run. These are some of the aspects your general liability does not cover.

Professional Errors

It is important to remember that general liability insurance does not cover professional errors you or your employees make. This means that general liability typically won’t cover faulty workmanship or lawsuits over poor advice given to a customer.

Employee Injuries

General liability insurance may not cover accidents resulting in injuries to your employees; it only covers accidental third-party injuries. For example, if one of your employers slips and sustains an injury, your policy may not be able to cover their medical expenses or potential lawsuits.


Your general liability insurance policy will typically exclude any vehicle used for your business. Furthermore, if you use your vehicle for work, your general liability insurance may not cover damages that occur while the vehicle is used for work purposes.

Intended Damage

General liability insurance does not cover intentional damage to your product or property by you or one of the insured parties on your policy.  For example, your best employee is having the worst day ever. In a moment of uncharacteristic anger, he takes his frustrations out in the worst way possible by hugging a wrench through someone’s window.

Normally, damage to someone else’s property is your fault, or your employee’s fault would be covered under your general liability policy. But not in this case because any insurance policy will never cover intentional damage.

Damages to Your Property

General liability insurance does cover property damages, but only under specific circumstances. General liability insurance is designed to protect you from third-party lawsuits, which means it only covers damages to your property by an outside party, like a customer.

If you or one of your employees drives a tractor through your window, your general liability policy typically will not cover it.

Best General Liability Insurance for Contractor

Here are some of the best insurance companies that offer general liability coverage for contractors

The Hartford (Best Overall General Liability – Contractors)

Hartford has the lowest general liability insurance cost for contractors. This company has an intense customer satisfaction and financial strength score. However, Hartford has a slow online quote process compared to other companies. Online quotes may not be available nationwide.


Nationwide is another affordable option for sole proprietor and LLC-structured general contractors. It has few customer complaints and superior financial strength to pay claims. But Nationwide has the slowest quote time of all company picks, so it may not be the best choice if you need a fast quote.

Besides general liability insurance coverage for contractors, nationwide offers surety bonds, inland marine for tools and equipment, commercial property and auto, workers’ compensation, and commercial umbrella coverage.


they are part of the Berkshire Hathaway insurance group. They offer affordable rates for sole proprietors, though it lacks quotes for general contractors LLCs. It has strong financial stability to pay its obligations, including claim payouts. They only offer general liability coverage in 27 states. It also has a long online quote process.


Hiscox has strong financial stability and customer satisfaction scores, making it a good contender for general liability insurance coverage for contractors. It offers fast quotes online with affordable rates for sole proprietor general contractors but no online option for LLCs. Hiscox only offers online quotes to contractors depending on employee count and business structure.


Thimble offers all companies the fastest online quote time and is widely available nationwide. It offers online quotes in every state, plus the District of Columbia. General contractors can also get commercial auto and property insurance, workers’ compensation, and business equipment protection policies through Thimble. It also has a strong financial stability rating but low customer satisfaction.


Next offers another option for general contractors with a fast online quote process available in almost all states. It offers several policy options for general contractors, including workers’ compensation, BOP, and commercial auto insurance. However, its general liability for contractors policy comes at a high cost for LLCs and sole proprietors.

Frequently Asked Questions

How much does General Liability Insurance Cost?

There is no standard cost for general liability insurance, but there are several factors that may influence the actual general liability insurance.

. Geographic region

. Contractor speciality

. Annual revenue

. Claim history

. Desired coverage limits

. Employee headcount.

What other Insurance Policies do Contractors need?

Other forms of insurance that are common for construction companies include

. Workers Compensation

. Professional liability

. Builders risk

. Subcontractor default insurance

. Inland marine

Conclusion on Contractor General Liability Insurance

General liability insurance is one of the most important insurance policies you can invest in. It is considered the foundation policy for every business insurance coverage. it protects you from lawsuits resulting from a wide range of incidents.

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