What General Liability Covers for Contractors
General liability insurance for contractors protects against third-party claims for bodily injury, property damage, and personal injury that occur during normal business operations. It does not cover damage to the contractor's own work, tools, or vehicles, nor does it cover employee injuries or professional errors.
More from this site
Keep reading the latest coverage
Core Coverages
- Bodily Injury: Medical costs and legal fees if a client or bystander is injured on the job site, such as a slip-and-fall or a falling object.
- Property Damage: Repair or replacement costs if the contractor accidentally damages a client's property, like breaking a pipe or scratching a floor.
- Personal and Advertising Injury: Legal defense costs for claims of libel, slander, copyright infringement, or invasion of privacy arising from the contractor's business.
- Products-Completed Operations: Coverage for claims that arise after the job is finished, if the completed work causes injury or damage.
What It Does Not Cover
General liability is just one layer of protection. It typically excludes damage to the contractor's own equipment, injuries to employees (which requires workers' compensation), and claims related to professional mistakes or advice (which requires errors and omissions insurance). It also does not cover intentional acts, criminal activity, or contractual liabilities that go beyond standard operations.
When Contractors Need It
Clients, landlords, and general contractors routinely require a certificate of insurance before work begins. It is a standard risk-management tool that protects the contractor's business assets and reputation. The specific limits and endorsements needed depend on the trade, project size, and state requirements.
Key Considerations
| Coverage Aspect | Detail | Context |
|---|---|---|
| Bodily Injury Limit | Typically $1 million per occurrence | Varies by policy and contractor class |
| Property Damage Limit | Usually $1 million aggregate | Can be higher for large-scale projects |
| Products-Completed Ops | Included or added via endorsement | Critical for remodelers and installers |
| Employee Injuries | Not covered | Requires workers' comp separately |
Contractors should review their policy with an agent to ensure the limits and exclusions match the specific risks of their trade and the projects they take on.