As a general contractor, you’re responsible for large-scale projects, subcontractors, and the safety of your job sites. With that responsibility comes risk — property damage, worker injuries, project delays, or even lawsuits. General contractor insurance protects your business from financial losses caused by accidents, errors, or unforeseen events. Whether you’re managing residential builds, commercial construction, or remodeling jobs, this coverage is essential.
Get a quote from one of our experts at Bird’s Eye Insurance to determine how much you can save on your general contractor insurance. We’ll review various types of coverages that best suit your needs.
Protects against property damage and injury claims: Covers legal costs and settlements if your work causes bodily injury or property damage to a third party. This is often required before you can sign a contract or step onto a job site.
Covers employee injuries on the job: Provides medical care and lost wage benefits to employees injured while working, and protects your business from related lawsuits.
Protects under-construction projects: Covers property loss or damage to a building in progress due to fire, theft, vandalism, or weather-related events.
Covers vehicles used for your business: Whether you’re hauling tools, towing equipment, or visiting job sites, this coverage protects your work trucks, vans, and drivers.
Protects mobile and on-site gear: Covers loss or damage to expensive tools and equipment due to theft, vandalism, or job site incidents.
If you’re a licensed general contractor, remodeler, or builder — whether you work on residential or commercial projects — you need this coverage. Many clients, cities, and states require proof of insurance before allowing work to begin. Even if it’s not required, having the right protection can save your business from devastating financial setbacks.
Start by reviewing the types of jobs your contracting business handles—residential, commercial, or specialized trades. The larger or more complex the project, the more comprehensive your insurance coverage should be.
Consider potential third-party injury, property damage, and completed work risks. Ensuring adequate general liability and completed operations coverage helps protect you from costly claims.
A BOP can combine general liability with property and business interruption coverage at a reduced cost. Bundling may streamline your protection and simplify your premium payments.
General contractor insurance usually includes general liability coverage for bodily injury and property damage, as well as optional policies like workers’ compensation, commercial auto, and builder’s risk insurance. This protects your business from lawsuits, job-site accidents, and damage to materials or structures during construction.
While not federally mandated, many states and local municipalities require proof of insurance before issuing contractor licenses or permits. Even if not legally required, clients often demand coverage before agreeing to work with a contractor, making it a practical necessity.
The amount of coverage depends on your business size, project type, number of employees, and contract requirements. Many small contractors carry at least $1 million in general liability, but larger projects or high-risk work may require higher limits or additional policies.
Most general liability policies do not automatically cover subcontractors. Contractors should ensure their subs carry their own liability insurance and list the general contractor as an additional insured to avoid gaps in coverage.
You can reduce premiums by maintaining a strong safety record, using written contracts, verifying subcontractor insurance, and bundling policies (e.g., general liability with tools & equipment). Increasing your deductible and paying premiums annually can also help save money.
