What is Trade Contractor General Liability?
Trade Contractor General Liability is a commercial insurance policy that helps cover third‑party claims for bodily injury, property damage, and related legal defense costs arising from contractor operations. It’s designed for businesses that perform on‑site work, maintenance, or installations and can work alongside commercial auto, property, and equipment coverage to create a broader risk-management program.
Who needs it
Small and mid‑sized contractors, specialty subcontractors, and artisan repair firms commonly carry this coverage. Clubs, associations or organizations that hire contractors for events or facility work may also require proof of coverage from vendors. For examples and contractor-specific options, see the Service & Repair Artisan Contractors General Liability resource.
What it typically covers
Standard coverages include third‑party bodily injury and property damage, personal and advertising injury, and medical payments. Policies can address exposures from tools and equipment, limited completed‑operations coverage, and premises liability. For focused artisan policy details, review Artisan Contractor General Liability Insurance.
Risk scenario: a passerby slips near a jobsite and is injured — general liability can respond to the claim for medical costs and legal defense.
Common exclusions or limitations
Typical exclusions include professional liability (errors in design or advice), pollution, intentional acts, employee injuries (covered by workers’ compensation), and some auto exposures. Damage to tools or contractor-owned equipment usually needs a separate inland marine or equipment floater. Policies also often limit coverage for certain high‑risk operations such as heavy excavation unless endorsed.
Factors that influence cost
Premiums are influenced by trade classification, payroll or labor costs, annual revenue, claims history, limits and deductibles selected, and the scope of completed‑operations exposure. Additional factors include whether the contractor uses subcontractors and the presence of risk‑management controls like safety programs. For information about umbrella layers and exclusions that affect pricing, see Contractor Insurance: Liability, Exclusions & Umbrella Coverage.
Proof of insurance & compliance
Property owners and general contractors commonly require certificates of insurance naming them as an additional insured. Certificates show policy limits and effective dates but read policy forms for actual coverage language. Certificates do not change the policy — they only document it.
How to get a quote
To obtain a quote, gather details about your trade, yearly receipts, payroll, typical job site operations, and any subcontractor use. Underwriters evaluate operational hazards, prior losses, and required endorsements when underwriting a policy. If you need assistance, you can talk to your agent to review options and limits that match your exposures.
Frequently Asked Questions
Do subcontractors need their own coverage?
Yes — subcontractors should carry their own general liability and provide certificates naming the hiring contractor as an additional insured when requested.
Will general liability cover my tools if they are stolen?
No — most general liability policies exclude loss of your own tools and equipment; separate inland marine or equipment coverage is usually required.
Can a general liability policy cover damage after a job is completed?
Completed‑operations coverage can respond to claims arising after work is finished, but limits and timeframes vary by policy and endorsement.
Still have questions? Talk to a local insurance expert.