When you work as a general contractor, you may build homes from the ground up, perform repairs on a variety of buildings, or renovate homes, buildings, or offices.
Your job can be rewarding and improves the lives of others, but it also carries risks.
Protect your livelihood and assets with general contractors professional liability insurance.
What Risks do General Contractors Face?
General contractors normally perform the building aspects of a project and are often responsible for overall site performance.
Because you're responsible for construction, any structural failure could become your responsibility and you may be liable for injuries or illnesses that result from mistakes by you or your sub-contractors.
- Designing a project
- Estimating project cost
- Hiring sub-contractors
- Supervising an entire build site
These additional responsibilities increase your risks and liability.
An error in design, an underestimated cost, or a mistake by a sub-contractor that causes bodily injury or property damage could lead to a lawsuit with very large costs, for which you could be held liable.
General contractors professional liability helps protect your livelihood and assets if you are sued by covering damages that might otherwise force you to use personal or business funds.
What Does General Contractors Professional Liability Cover?
Purchasing general contractors professional liability insurance provides coverage for several important circumstances related to your construction services.
- Design errors
- Bodily injury
- Property damage
- Negligent acts
- Contractual liability
- Faulty workmanship
You may also add endorsements such as pollution coverage and professional indemnity for design professionals involved with the project.
How Much General Contractors Professional Liability do you Need?
The right policy depends on your job responsibilities, the size and type of projects you handle, and the assets you need to protect.
Talk with a licensed professional about limits and exclusions that apply to your operations, and consider whether trade-specific coverages are appropriate; for example, see Roofing Contractors General Liability for roof-focused exposures.
You should also discuss the difference between a professional liability policy and an umbrella policy that supplements a general liability policy.
Depending on the scope of work you perform, additional specialized coverages may be helpful; for related options see Heating and Air Conditioning Contractors General Liability.
Talk to your agent about your job responsibilities, potential risks, and assets so they can recommend adequate coverage limits and policy language.
If you want a quick starting point to compare options, you can talk to your agent to request quotes and guidance.
General contractors professional liability protects your livelihood and assets, making it an important part of running a safe, sustainable contracting business.
Make an appointment today to review your coverage and gain peace of mind.
Frequently Asked Questions
What does general contractors professional liability insurance cover?
It typically covers design errors, negligence, bodily injury, property damage, contractual liability, and some claims of faulty workmanship related to professional services.
Are subcontractors covered under my policy?
Coverage for subcontractors depends on your policy terms and whether subcontractors are listed as additional insureds or covered by contract; review your policy language with your agent.
Will this insurance cover accidents on the job site?
Claims for bodily injury and property damage can be covered, but coverage depends on the specific cause, policy exclusions, and whether the injury arose from professional work or general operations.
How do I determine adequate coverage limits?
Consider the size and type of projects you handle, your contractual requirements, and your business assets, and discuss limits with an insurance professional.