General Liability

What is general liability insurance for contractors?

General liability (GL) is the foundation of every contractor insurance program. It protects your business when your work or operations injure someone outside your company or damage their property — a customer who trips over your cords, a pipe you nick that floods a kitchen, a claim that your finished work caused damage months later.

It’s also the coverage everyone asks to see: GCs, property managers, municipalities, and commercial clients require a certificate of insurance with active general liability before you can bid, sign, or set foot on site.

What it covers

• Third-party bodily injury — medical costs and legal liability when a non-employee is injured because of your operations.
• Third-party property damage — damage your work causes to a customer’s building, finishes, or belongings.
• Completed operations — claims arising from your finished work — critical in the trades, where problems can surface months or years later.
• Personal and advertising injury — claims like libel, slander, and copyright issues in your advertising.
• Legal defense — attorney fees and defense costs, which the policy pays in addition to your limits.

Who needs it

Every contractor — from a one-person handyman operation to a general contractor running large projects. Most commercial contracts require $1M per occurrence / $2M aggregate limits, and trades like electrical, plumbing, and HVAC often can’t obtain or renew licenses without it.

How much does general liability cost?

GL premiums are driven by your trade, payroll, revenue, limits, and state. A low-risk trade might pay well under a thousand dollars a year, while high-exposure work costs more. Carriers rate the same contractor very differently, which is why we compare multiple A-rated carriers. Get your quotes here.

Frequently asked questions

Is general liability required by law?

Most states require it for contractor licensing or registration, and virtually every commercial contract requires it regardless of state law.

What is an additional insured endorsement?

It extends your coverage to protect a GC or property owner for liability arising from your work — a standard contract requirement we can add to your policy.

Does GL cover my own tools or my employees’ injuries?

No — tools need inland marine coverage and employee injuries need workers’ compensation. GL only covers claims from third parties.