What is Contractor Services General Liability Insurance?
Contractor Services General Liability Insurance helps protect contractors and construction professionals from financial loss due to claims of property damage, bodily injury, or advertising injury caused by their business operations. It's a foundational type of business insurance often required by clients, lenders, or licensing boards before work can begin.
Who Needs It
This coverage is essential for a wide range of trades and professionals, including:
- General contractors
- Electricians
- Plumbers
- Carpenters
- Roofers
- HVAC technicians
- Handypeople and remodelers
If you work directly with clients, subcontractors, or job sites, general liability insurance helps protect your business from costly claims and may be required by project owners or local regulations.
What It Typically Covers
Contractor general liability insurance usually includes protection for:
- Third-party bodily injury: Covers medical expenses or legal costs if someone is injured on the job site due to your work.
- Property damage: Helps pay for repair or replacement if your work accidentally damages a client’s property.
- Personal and advertising injury: Covers claims like libel, slander, or copyright infringement in your business advertising.
- Legal defense: Includes legal fees and court costs associated with covered claims.
Common Exclusions and Limitations
While general liability insurance offers broad protection, it does not cover everything. Common exclusions include:
Always review your policy details to understand what's included and what may require additional coverage.
Factors That Influence Cost
The cost of contractor general liability insurance varies based on several factors, such as:
- Type of work performed (e.g., roofing vs. painting)
- Business size and revenue
- Number of employees and subcontractors
- Claims history
- Coverage limits and deductibles
Insurers also consider your location and how much work you subcontract to others.
Proof of Insurance and Compliance
Many clients, municipalities, and licensing boards require contractors to show proof of insurance before starting a job. A certificate of insurance (COI) serves as official documentation proving you carry active general liability coverage. Requirements may vary by state, so it's important to check with local authorities and clients before beginning a project.
How to Get a Quote
Getting covered is simple. You can start your free contractor general liability insurance quote online in minutes. Get a quote today.
Related Coverages
Frequently Asked Questions
Is general liability insurance required for contractors?
While not always legally required, many clients or local governments mandate it before work begins. It also helps protect your business from common risks.
Does general liability cover injuries to my employees?
No. Employee injuries are typically covered under a separate workers’ compensation policy.
Can subcontractors be covered under my policy?
Some policies allow limited coverage for subcontractors, but you may need to list them and pay additional premiums. Always check with your insurer.
What’s the difference between general liability and professional liability insurance?
General liability covers physical risks like bodily injury or property damage. Professional liability covers errors in professional services or advice.
How do I show proof of insurance to a client?
You can request a certificate of insurance from your provider, which lists your coverage details and can be shared with clients or regulators.
Still have questions? Talk to a local insurance expert.