General liability insurance pays for third-party claims of bodily injury or property damage caused by your work. If a visitor gets hurt on your job site, or your crew puts a hole in a client’s wall, the policy covers the legal bills, settlements, and medical costs.
That is the short version. The longer version is that without it, one bad day on a job site can end a contracting business. Legal fees alone on a defended lawsuit, even one you win, can run $30,000 to $80,000. Most contractors do not have that sitting around.
Anyone who works on someone else’s property. That covers:
If a client, a neighboring property owner, or anyone else can point to your work and claim it hurt them or their property, you have exposure. That is what this policy covers.
Both, but the practical answer is that most contractors do not get to choose. Project owners require a certificate of insurance (COI) before you set foot on a job. GCs require it from every sub they hire. Many municipalities require it before issuing a permit.
So yes, you need it. The question is how much coverage and from which carrier, not whether to get it.
Four things:
Someone gets hurt on your job site or because of your work. The policy pays their medical bills and your legal costs if they sue.
Your crew damages a client’s property or something nearby. The policy pays to repair or replace it.
Claims of libel, slander, or copyright infringement tied to your business or advertising. Less common for contractors, but it is in the policy.
This one matters more than people realize. Even a lawsuit with no merit costs money to fight. General liability pays your attorney fees and court costs whether you win or lose.
The claims contractors actually deal with are almost always property damage and bodily injury. Here is what that looks like in practice:
A sub breaks a water line in a client’s home. Two floors flood. The policy covers the repair costs and any lawsuit that follows.
Someone walks through your job site, trips on equipment, and breaks a wrist. The policy covers their medical bills.
Your roofing crew damages a neighbor’s property. The policy covers it.
A client claims your work cracked their foundation and sues. The policy covers your legal defense.
Those are not edge cases. Those are the reasons contractors file claims.
Yes. Defense costs are built into the policy. If a third party sues you for bodily injury or property damage, your insurer pays the attorney fees, court costs, and any settlement or judgment up to your policy limits. The coverage applies even if the lawsuit has no basis. You do not have to be at fault for the costs to start adding up.
General liability is not a catch-all. It does not cover:
A lot of contractors find out about these gaps after a claim. Better to know now.
For general contractors, the rate runs around 0.75% of annual revenue. Roofing contractors pay closer to 1% because the risk profile is higher.
Most general contractors doing under $150,000 in revenue hit a minimum premium of $1,600 a year. Below a certain revenue threshold, carriers charge a flat minimum rather than calculating a straight percentage.
From there it scales. The tables below show estimated annual premiums by city. Your actual number depends on your trade, your claims history, and which carriers are writing in your area.
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,600 (minimum) |
| $150,000 – $500,000 | $1,600 – $3,750 |
| $500,000 – $1,000,000 | $3,750 – $7,500 |
| $1,000,000 – $5,000,000 | $7,500 – $38,500 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,625 (minimum) |
| $150,000 – $500,000 | $1,625 – $3,800 |
| $500,000 – $1,000,000 | $3,800 – $7,600 |
| $1,000,000 – $5,000,000 | $7,600 – $38,750 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,575 (minimum) |
| $150,000 – $500,000 | $1,575 – $3,700 |
| $500,000 – $1,000,000 | $3,700 – $7,400 |
| $1,000,000 – $5,000,000 | $7,400 – $37,500 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,600 (minimum) |
| $150,000 – $500,000 | $1,600 – $3,750 |
| $500,000 – $1,000,000 | $3,750 – $7,500 |
| $1,000,000 – $5,000,000 | $7,500 – $38,000 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,550 (minimum) |
| $150,000 – $500,000 | $1,550 – $3,650 |
| $500,000 – $1,000,000 | $3,650 – $7,300 |
| $1,000,000 – $5,000,000 | $7,300 – $37,000 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,575 (minimum) |
| $150,000 – $500,000 | $1,575 – $3,700 |
| $500,000 – $1,000,000 | $3,700 – $7,400 |
| $1,000,000 – $5,000,000 | $7,400 – $37,500 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,550 (minimum) |
| $150,000 – $500,000 | $1,550 – $3,650 |
| $500,000 – $1,000,000 | $3,650 – $7,300 |
| $1,000,000 – $5,000,000 | $7,300 – $37,000 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,600 (minimum) |
| $150,000 – $500,000 | $1,600 – $3,750 |
| $500,000 – $1,000,000 | $3,750 – $7,500 |
| $1,000,000 – $5,000,000 | $7,500 – $38,000 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,575 (minimum) |
| $150,000 – $500,000 | $1,575 – $3,700 |
| $500,000 – $1,000,000 | $3,700 – $7,400 |
| $1,000,000 – $5,000,000 | $7,400 – $37,500 |
| Annual Revenue | Estimated Annual Premium |
|---|---|
| Under $150,000 | $1,625 (minimum) |
| $150,000 – $500,000 | $1,625 – $3,800 |
| $500,000 – $1,000,000 | $3,800 – $7,600 |
| $1,000,000 – $5,000,000 | $7,600 – $38,750 |
These are estimates. Your actual premium depends on your trade, claims history, policy limits, and the carriers writing in your market. Our agents shop A-rated carriers to find the lowest available rate.
The standard for most contractors is $1 million per occurrence with a $2 million aggregate. That means the policy pays up to $1 million on any single claim, and a total of $2 million across all claims in the policy year.
Some project owners require higher limits on larger commercial jobs. If you are regularly working on projects above $5 million in construction value, ask your agent about bumping to $2 million per occurrence. It costs less than most contractors expect.
These are two different policies covering two different things. Builders risk covers the structure being built. General liability covers what happens around it.
Most contractors and developers carry both. If a fire destroys the framing on a project, builders risk pays. If a bystander gets hurt on that same job, general liability pays. The two policies do not overlap, and you generally need both to be fully covered on an active construction project.
For larger projects with multiple contractors, an Owner Controlled Insurance Program (OCIP) is worth looking at. It puts all contractors on a project under one policy, which simplifies coverage and sometimes lowers total cost.
It takes about five minutes. Have your annual revenue, trade type, and any prior claims ready. Our agents shop A-rated carriers and come back with at least three options.
Fill out the quick quote form to get an estimated number online.
Our agents go to market across A-rated carriers.
You get three or more options from different carriers to compare.
Pick your policy, choose a payment plan, and you are covered.
Your certificate of insurance is issued the same day in most cases.
If you want an exact number, our agents can get there fast. After reviewing your operation, they can usually come in 10% to 15% below the instant online estimate.
We work with contractors across every trade and offer:
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