General contractors face liability risks on every job. A customer, subcontractor, or other third party could be injured on the worksite, or the contractor could accidentally damage someone’s property. General contractor liability insurance for contractors can help pay for covered claims, legal costs, and property damage.
General contractor insurance is a group of insurance coverages that help to protect contractors from the risks that come with running a construction business. General contractors need insurance because accidents, property damage, injuries, and other unexpected events can lead to expensive claims. Insurance can help cover these costs and protect the business from financial losses.
Insurance may also be required to meet state requirements, licensing rules, or contract requirements. The specific coverage a contractor needs depends on the type of work they do, where they work, and the requirements of their projects.
Here are some situations that would not be protected by general liability insurance coverage:
Workers compensation is the insurance needed to protect employees when they get hurt on the job.
Example: An employee from your general contracting company falls from a ladder while installing siding and breaks their leg. This is not covered by general liability insurance.
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.
Errors and omissions insurance or professional liability insurance offers coverage for professional mistakes.
Example: A client claims that your advice or professional service caused them to lose money. Professional liability insurance may help cover the claim and related legal costs.
Referred to as the “workmanship or warranty” exclusion. General liability insurance generally does not cover the cost of fixing your own faulty work.
Example: You install a new roof but do not properly attach the shingles. High winds cause the shingles to come off 60 days later. The cost to repair the faulty roofing work is generally not covered.
Commercial auto insurance policies cover the vehicles used in your business.
Example: A contractor’s work truck causes an accident while traveling to a jobsite. Commercial auto insurance may cover the resulting damages and injuries.
Punitive damages are money a court orders someone to pay as a punishment for especially wrongful or reckless conduct.
Example: A contractor knowingly ignores a safety issue, and someone is injured. A court may award punitive damages to punish the contractor.
The cost of general contractor liability insurance varies because no two contractors have the same type and amount of work. However, at ContractorsLiability.com we make sure your liability insurance requirements are being met.
These are the main factors that determine your premium:
General contractor liability insurance costs can increase as your annual revenue grows. The table below shows estimated general liability insurance costs at different revenue levels, from $50,000 to $1 million. Your actual premium can also vary based on your type of work, payroll, subcontractors, claims history, location, and coverage limits. The share of revenue column shows the estimated annual premium as a percentage of annual business revenue.
| Annual Revenue | Estimated Annual Premium | Estimated Monthly Cost | Share of Revenue |
| $50,000 | From $490 | $41/mo | 0.98% |
| $100,000 | From $970 | $81/mo | 0.97% |
| $150,000 | From $1,550 | $121/mo | 0.97% |
| $250,000 | From $2,400 | $200/mo | 0.96% |
| $500,000 | From $4,600 | $383/mo | 0.92% |
| $750,000 | From $6,600 | $550/mo | 0.88% |
| $1,000,000 | From $8,500 | $708/mo | 0.85% |
Disclaimer: These pricing examples are estimates for informational purposes only. Actual premiums vary based on payroll, subcontractors, coverage limits, claims history, project type, and underwriting guidelines.
Every contracting business has unique insurance needs. Whether you’re a small contractor or a larger firm, we offer customized plans designed to match your specific risks. Our team will assess your needs to help ensure you have the right coverage without paying for unnecessary protection.
We provide coverage for high-risk projects, tools and equipment, general liability, builders risk, and more. Additional insureds can also be added when required by your contracts.
Don’t wait until an accident or claim puts your business at risk. Contact us today for a free quote or personalized consultation.
We’ll help you find coverage that fits your business, whether you need general liability, workers’ compensation, builders’ risk, or other contractor insurance.
Talk to a real agent, not a voicemail. Certificates of insurance in under 4 hours, with bilingual support every day of the year.
You will need the legal name of your business and its structure, such as a sole proprietorship, partnership, corporation, or LLC. Any DBA (doing business as) names should also be provided.
Information about the type of work you perform helps determine the coverage your business needs. You may need to provide:
Businesses that have been operating for some time may need to provide loss runs, which show previous insurance claims. These records can be obtained from your previous insurance company. ContractorsLiability.com can also help you obtain them.
New businesses can still qualify for general contractors insurance. Instead of loss runs, information about your previous construction experience may be needed.
If your state requires general contractors to be licensed, you will be required to provide your license number or a copy of your license.
You will need to review and sign the insurance application before sending it back.
Our lowest general contractor liability insurance policy limit is $1 million per occurrence and $2 million aggregate. These limits are also commonly requested by clients and contracts, although requirements vary by project and location.
Some contracts require higher liability limits than the standard policy limits. These requirements are usually listed in the insurance section of the contract. Providing this section of the contract to your insurance agent can help ensure that your policy meets the required limits.
At ContractorsLiability.com, we offer a number of convenient payment options for your general contractors 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.
You will need to provide the number of employees in your business and your total payroll. These details can affect your insurance costs and help determine the coverage your business needs.
General contractor insurance costs vary based on the type of work, annual revenue, payroll, subcontractors, location, claims history, and coverage limits. General liability is one part of a contractor’s total insurance costs. Based on the estimates from the table above, general liability can cost about $41 to $708 per month, depending on the annual revenue.
General liability insurance can cover certain third-party claims involving bodily injury, property damage, and personal and advertising injury. It may also help pay legal costs for covered claims. A policy’s limits and exclusions determine what is covered.
Insurance requirements depend on your state, license, contracts, and the type of work you do. Workers’ compensation is required for most employers, although state rules and exemptions vary. General liability may also be required by a state licensing board, client, general contractor, or project contract.
General contractors may need several types of insurance depending on their work and projects. General liability can cover certain third-party injury and property damage claims. Workers’ compensation covers work-related injuries to employees, while commercial auto can cover certain accidents involving work vehicles. Some projects or businesses may also need builders’ risk or professional liability.
The coverage you need depends on your type of work, payroll, revenue, subcontractors, and contract requirements. A contractor may need general liability and workers’ compensation, while certain projects may also require builders’ risk or professional liability. Reviewing your contracts and business operations can help identify the coverage and limits you need.
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