General contractors offer a variety of services during new construction builds. And as a general contractor, you understand the importance of choosing business insurance that’s designed for the wide range of jobs you complete. So, what insurance do you need as a general contractor?
General contractor liability insurance is essential—but it has its limitations. Find out how to protect your business with liability insurance and additional coverages.
Note: Work with an Integrity Independent Agent and our Risk Control team to pinpoint the exact insurance policies your business needs. Use this resource to help you start exploring coverage options.
The ins and outs of general contractor liability insurance
General contractor liability insurance is just general liability insurance for general contractors. Think of it as a protective measure for your business. When you (or your company) are responsible for damage to a third party, general liability insurance can help cover the costs for the liabilities.
Your liability insurance policy can cover you and all your direct employees while you lead new construction builds for apartment complexes, shopping centers, hospitals and more.
Types of coverage on a general contractor liability policy
General contractor liability insurance can cover claims for:
- Property damage—provide damage coverage to property of third party that you may be legally liable for.
- Bodily injury—get protection from legal claims against you if you are at fault for injuries to a third party. For example, let’s say you are building a roof on a site and a delivery driver gets injured from fallen roofing materials. Bodily injury coverage can help cover medical costs and legal costs associated with your negligent acts on your business premises or in the course of your business operations.
- Libel, slander and defamation—get protection if someone in your company is accused of directly harming the reputation of a third party.
- Advertising harm—get financial help covering legal costs for copyright infringement. In today’s digital age, this coverage can be helpful if you unknowingly or accidentally commit copyright infringement.
There aren’t specific general contractor insurance requirements, but the applicability of the coverage may vary by state. Contact an Integrity Independent Agent to learn what coverage your business needs for ample protection.
Learn about our
Business Insurance
What you can expect to pay
The general liability insurance cost for contractors depends on risk exposure, where your company is located, the age of your business and more according to
Forbes. Talk to an Integrity Independent Agent today to start building a customized insurance policy.
General liability insurance for independent contractors and subcontractors
You might be wondering what general liability insurance looks like for other contractors. Independent contractors and subcontractors are individual professionals like plumbers, electricians, painters, repair contractors, carpenters and others. If you fall under this category, you will need your own general liability policy because you work for yourself and are not a direct employee of a general contractor.
Additional coverages for general contractors
Now that you have your general liability coverage, what other insurance policies could benefit your business?
Commercial property insurance
This coverage is exactly what it sounds like—it’s the part of your businessowners policy that protects your commercial property. You can insure your building, what’s inside your building, fencing and signage (detached or attached signs). Check with your independent agent to make sure you have items listed that you want to insure. Each carrier’s policy will vary.
Workers’ compensation insurance
Where liability insurance covers claims for injured third parties occurring on the job site or out of your operation, workers’ compensation helps cover medical expenses for your employees injured on the job. Most states require some form of workers’ compensation coverage. It’s important to check with your independent agent regarding your workers’ compensation exposure if you hire subcontractors.
Commercial auto insurance
If you have a company vehicle, commercial auto insurance is essential. Just as states require auto insurance for your personal vehicle, you must have a commercial auto insurance policy to travel or transport equipment and products in your work vehicle. The company vehicle should be titled in the business name. If it is titled personally, work with your agent to make sure your commercial auto policy will cover you in the event of a claim.
Talk to an Integrity Independent Agent today for an insurance quote for general contractor liability insurance or any of our business coverages.
References
Calabrese Law Associates
IRS
Forbes
Forbes 2
IRMI
Nerd Wallet
Smart Compliance
Coverages described herein may not be available in all states. Please contact a local independent Integrity agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. For the coverage to apply, a claim must be made and reported during the policy period. Scenarios above are not actual claims. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Integrity Insurance policies are underwritten by Integrity Insurance Company, an affiliate of Grange Insurance Company, and Integrity’s subsidiaries. Integrity companies not licensed in Pennsylvania. Not all Integrity companies are licensed in all states.