Comprehensive
Contractor Insurance:
Tailored Protection for Your Contracting Business
As a general contractor, one should not only ensure that the contractor’s business insurance is in place, but it might also be a legal requirement. General contractors’ liability insurance is a must for entrepreneurs; the daily risks are innumerable. Without proper coverage, a single unexpected event could mean both financial ruin and project delays.
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Why General Contractors Need Insurance:
As a general contractor, one should not only ensure that the contractor’s business insurance is in place, but it might also be a legal requirement. General contractors’ liability insurance is a must for entrepreneurs; the daily risks are innumerable. Without proper coverage, a single unexpected event could mean both financial ruin and project delays.
In many states, contractors must have specific kinds of insurance, such as general contractors liability insurance and workers comp, to comply with industry regulations. These coverages not only ensure you meet legal requirements but also give peace of mind that protection is on your business, employees, and clients.
Types of General Contractors Insurance Coverage:
- General Liability Insurance: Protects against third-party claims for injury or property damage, covering legal fees if a client is hurt or property is damaged.
- Workers’ Compensation Insurance: Covers medical expenses and lost wages for employees injured on the job, ensuring compliance with legal requirements.
- Commercial Auto Insurance: Covers damage to company vehicles and liability for accidents involving company drivers.
- Builders Risk Insurance: Protects construction projects from risks like theft, vandalism, or weather damage.
- Professional Liability Insurance: Covers claims of negligence or errors in professional services. Each type of insurance safeguards your business effectively.
What’s Not Covered by General Contractor’s Insurance?
Here are some situations that would not be protected by general liability insurance coverage.
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Employee injuries:
Workers Compensation is the insurance you would need to protect your employees when they are hurt on the job.
Example: Your General Contracting Company is installing some siding and the employee falls off a ladder while installing the siding breaking his leg. This is not covered.
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Professional mistakes:
Errors and Omissions Insurance or Professional Liability Insurance offers coverage for this type of mistakes.
Example: It insures against mishaps that may occur as you offer your opinion, service, or recommendations in the course of business.
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Auto-related coverage:
General Liability Insurance coverage does not protect you against auto accidents. You need to obtain a separate commercial auto Insurance policy to cover the vehicles used in your business.
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Intentional acts:
General Liability Insurance does not cover damages or injuries resulting from intentional acts.
Example: An employee gets mad at a customer and drives a bulldozer into the side of their house, your business liability coverage would not cover the damages if they sue.
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Your work:
Referred to as the “workmanship or Warranty” exclusion.
Example: You put a new roof on a house and do not properly attach the shingles. There are high winds 60 days later and half the shingles come off.
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Punitive damages:
General Liability Insurance policies normally do not pay for punitive damages resulting from a lawsuit.
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Custom Insurance Solutions
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Custom Insurance Solutions
Every contracting business has unique insurance needs. Whether you’re a small contractor or a larger firm, we offer customized plans that match your specific risks. Our team will assess your situation and ensure you’re not overpaying for unnecessary coverage.
We provide coverage for high-risk projects, tools, and equipment, with tailored plans including general liability and builders’ risk insurance. Need additional insureds for contracts? We’ve got that covered too.
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Flexible payment plans
Flexible payment plans help manage your budget, so insurance remains affordable as your business grows and evolves.
Let us handle your coverage, so you can focus on expanding your business with peace of mind.
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Industry Regulations
Compliance with state and industry rules is essential in construction to avoid legal issues and secure contracts. Missing required insurance can lead to lawsuits, fines, or losing bidding opportunities.
Our insurance options are designed to meet these regulations, ensuring your projects—from residential jobs to large public works—are fully compliant. We offer mandatory coverages, such as builders’ risk and additional insured clauses for government projects.
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Get Protected
Don’t wait for trouble. Contact us today for a free quote, or call for a personalized consultation.
We’ll guide you to the best coverage, whether it’s general liability, workers’ compensation, or builders’ risk insurance.
How Much Does General Liability Insurance Cost for General Contractors?
It is difficult to calculate the exact value of General Contractor General Liability Insurance because no two General Contractors do exactly the same type of work and the same amount of work. However, at ContractorsLiability.com we make sure your liability insurance requirements are being met.
These are the main factors in how Insurance companies determine your premium.
- Type of work being performed
- Amount of revenue of the company.
- The number of employees.
- Amount of coverage requested.
- The State where the company is located.
- The prior loss history(ie. Have there been insurance claims in the past 5 years).
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- Get your certificate of insurance.
- Update your coverage.
- Edit billing info.
- Change business address.
- Customer Service.
What Are The Requirements To Obtain General Liability Insurance?
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Name and Structure of Business:
We will need the exact name of the business along with whether you are a Sole Proprietorship, Partnership, Corporation, or LLC. We would also need any DBA you may use.
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Type of Work Performed:
Do you do residential or commercial work? If you do both what are the approximate percentages of each type of work. Is the type of work you do new construction or remodeling of existing structures. Again if you do both an estimate of the percentage of each type.
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How Long Have You Been In Business or Experience:
We will need to know how long you have been in business. If you have been in business for a while we will need what is called loss runs. These can be obtained from your previous insurance company. These are reports that give a detail of any claims your business may have had. At Contractors Liability we can help you obtain these if you want us to do so.
Do not worry if you are a new business. We specialize in getting General Contractors General Liability Coverage for new companies. The only thing we would need is a little information on your work experience in the construction industry.
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Do You Require Sub-Contractors to Name Your Business as Additional Insureds
If you use sub-contractors, it is a best practice to always require them to provide you a certificate of insurance naming your business as an additional insured before you allow them access to the job site?
There are many good reasons to require this, but the two most important are that if you have a certificate of insurance from them any amount you pay them with not be counted towards your revenue during your insurance audit. Another reason is that if the cause of any incidents where a claim is filed it will go against their insurance rather than yours. As you know if you have claims insurance premiums rise.
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Licenses
If your State requires General Contractors to be licensed you will be required to provide your license number or a copy of your license.
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Signature
You will need to review and sign the application and send it back.
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Gross receipts of the Business:
The previous 12 months gross receipts and an estimate of the next 12 months gross receipts. It is always best to give a conservative estimate of future earnings. However, be aware that most insurance companies will perform an “audit” after the policy term to determine what the exact revenue was. If you estimated to low you will be given a bill for the difference.
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Policy Limits
The lowest limit General Contractor General Liability Insurance policy we sell is $1,000,000 Occurrence $2,000,000 Aggregate. This is the standard industry amount.
Some States allow for lower limits, but the savings are too small to justify issuing those policies. For example, a $300,000 Occurrence $600,000 Aggregate policy will only result on average less than $50 per year in premium. It is not worth the risk to save a few bucks.
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Large Policy Limits
In some instances, you may need higher limits as a result of contractual obligations. These higher limits will be found in the insurance section of any contract you are negotiating. It is always best to forward this section to your agent so that they can get you exactly the coverage the contract calls for.
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Payment Options
At ContractorsLiability.com we offer a number of convenient payment options for your General Contractors General Liability Insurance Policy. We can accept Debit Cards, Credit Cards, and Checks. We have a number of financing options as well. We will work with you to get you set up with the payment plan that is right for your business.
At ContractorsLiability.com we make it easy to get cheap and affordable General Contractors General Liability Insurance. We will be able to issue your certificates of insurance right away so you can get to work.
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The number of Employees and Payroll:
We would need to know the number of employees in the business and Payroll.
Here’s What Contractors Think
Frequently Asked Questions
This block answers common concerns while using relevant keywords like “contractors liability insurance,” “workers’ compensation,” and “builders risk insurance.”
Costs vary based on your business size, type of work, and coverage needs. Typically, general contractors pay between $500 and $2,000 annually. Request a personalized quote for a more accurate estimate.
It covers third-party claims of bodily injury, property damage, and personal injury. For example, if someone is injured on your site or you damage property during a job, general liability covers the costs.
Yes, some types, like workers' compensation, are required by law. General liability may also be mandatory for contracts or licensing, depending on your state and industry.
Common coverages include:
- General Liability
- Workers’ Compensation
- Commercial Auto
- Builders Risk
- Professional Liability
It depends on your business size and scope. Our team can help recommend the right coverage for your specific needs.
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