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Guide to Property Damage Insurance for General Contractors

In the case of an accident, having property damage insurance in place can wind up saving you a lot of money, if not your business as a contractor. Thus as a General Contractor, you stand a greater risk of your materials and tools being damaged or stolen. For this reason, it is essential to be have adequate coverage in a worst-case scenario.

General Contractor’s liability insurance offers the perfect solution to this. Thus, where the policy holder is responsible, the coverage extends for damages and losses caused by work-related accidents.

Therefore, if you are thinking of joining the trade and becoming a General Contractor or need more insurance coverage, this guide is for you.

Do I need insurance as a General Contractor?

As a result, to become a certified and qualified General Contractor, having property damage insurance is a requirement in most states.

What is property damage insurance?

This type of insurance, or liability, covers you as a contractor against any claims of damage by clients or third parties, where you were at fault.

Consequently, claims can arise from any number of incidents. If, for instance, you are working on a roof with building material and something falls, injuring a person walking by at the time. Therefore, you are liable for any injuries sustained by them.

Thus your policy will cover the expenses saving you from paying upfront, out of pocket.


As a result, General Contractor’s liability covers the vital points of a damage claim. However, one policy is generally not enough, and this insurance does not cover all areas.

What is the coverage

Coverage includes:

  • Property damage
  • Bodily injury
  • Medical payments
  • Harm to reputation
  • Damage to your rented premises
  • Advertising mistakes

What’s not

Areas not covered include:

  • Professional mistakes
  • Employee injuries
  • Punitive damages
  • Intentional acts
  • Your work
  • Auto-related coverage

Other property damage policies

Further, a General Contractor’s insurance policy covers many areas of your business. However, it is always wise to fill in the insurance gaps if necessary.

Look into these policies to optimize your insurance coverage.

Commercial vehicle property damage

Hence, these auto insurance policies cover third party vehicles in an accident when using your business vehicle.

Commercial property damage

Thus this policy covers your commercial premises and its contents, including equipment against damages and loss due to theft, breakages, unexpected fires, and vandalism.

Calculating costs

As a result, each contractor will have different costs associated with their insurance policy and premiums.

Various factors help calculate costs, including:

  • Number of employees
  • Revenue
  • Type of work
  • Amount of coverage required
  • Company’s location
  • History of loss

To find out the estimated cost for your contractor business-coverage, contact an agent at Contractors Liability for an inquiry.

Boost your coverage!

Call Contractors Liability at 866 225 1950 today

Furthermore, as a General Contractor, consider your insurance coverage requirements to keep your business afloat in times of need.

With the right property damage insurance, you will stand out from the competition. You will also have taken the proper steps to ensure the well-being of your business. Call 866 225 1950 for assistance.

Avatar for John Brown
Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.