As a contractor, you're constantly juggling multiple projects at once. With managing your team to handling equipment and materials, insurance coverage is the last thing on your mind. However, liability insurance for contractors is essential for protecting you and your business from any unexpected damages or accidents on the job site.
You have to know that a lot of things can go wrong when you’re working as a general contractor or an independent contractor. Debris might fall on someone during a construction project. Freak accidents might hurt the client while they’re inspecting your work.
In this post, we'll dive into everything you need to know about general liability insurance for contractors, including coverage limits, state requirements, endorsements, and even some of the best companies offering affordable contractor general liability insurance rates.
General liability insurance for contractors is a type of insurance that provides coverage for accidents, injuries, and property damage that occur during a project.
It protects your business from financial loss due to legal claims or lawsuits filed against you by third parties General liability insurance typically covers the following:
Bodily injury,
Property damage
Personal and advertising injury
Medical payments
Products and completed operations
Construction general liability insurance safeguards businesses from financial losses in accidents or property damage. This policy covers the cost of claims for bodily injuries or property damage that third parties due to accidents at the job-site.
For instance, if a contractor accidentally damages a client's property while working on their project, construction liability insurance will cover the cost of repairs or replacement.
It can help pay medical bills and legal fees if someone gets injured on your premises. Moreover, this insurance policy also offers coverage against claims made by third parties, such as clients, vendors, or partners who may suffer financial loss due to your business operations.
All in all, general liability insurance for contractors shields from unforeseen risks and potentially costly lawsuits. The policy grants a shield against potential liabilities that could otherwise cripple your business financially.
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Coverage limits of general liability insurance for contractors can vary based on the work type and the company's size. The coverage limit is the maximum amount an insurer will pay in case of a claim.
For example, if you have a $1 million coverage limit and incur $1.5 million in damages, you would be responsible for covering the remaining $500,000. Choosing adequate limits for general liability insurance coverage for contractors without breaking your budget is essential.
The most common coverage limits for contractor liability insurance are $1 million per occurrence and $2 million aggregate. This means a cap on how much will be paid per incident or over multiple incidents during one policy term.
However, some contractors may require higher limits depending on their needs and the risks involved in their work. Location, industry regulations, and contract requirements can also impact coverage limits.
It's crucial to carefully review different options with your insurer to determine what level of protection is right for you and consider any additional endorsements or add-ons needed to supplement standard coverages.
Many states will require you to obtain a minimum general liability coverage as a prerequisite. If you are unsure about what your particular state requires regarding general liability insurance for contractors, here's a comprehensive table of the requirements for contractor licensing in all 50 US states:
| State | Minimum contractors liability coverage required |
|---|---|
| Alabama | $50,000 |
| Alaska | $100,000 |
| Arizona | $300,000 |
| Arkansas | $50,000 |
| California | $1,000,000 |
| Colorado | $500,000 |
| Connecticut | $500,000 |
| Delaware | $300,000 |
| Florida | $300,000 |
| Georgia | $300,000 |
| Hawaii | $25,000 |
| Idaho | $300,000 |
| Illinois | $1,000,000 |
| Indiana | $1,000,000 |
| Iowa | $500,000 |
| Kansas | $500,000 |
| Kentucky | $1,000,000 |
| Louisiana | $100,000 |
| Maine | $300,000 |
| Maryland | $50,000 |
| Massachusetts | $500,000 |
| Michigan | $500,000 |
| Minnesota | $300,000 |
| Mississippi | $50,000 |
| Missouri | $300,000 |
| Montana | $300,000 |
| Nebraska | $300,000 |
| Nevada | $1,000,000 |
| New Hampshire | $300,000 |
| New Jersey | $500,000 |
| New Mexico | $500,000 |
| New York | $1,000,000 |
| North Carolina | $1,000,000 |
| North Dakota | $300,000 |
| Ohio | $500,000 |
| Oklahoma | $500,000 |
| Oregon | $1,000,000 |
| Pennsylvania | $50,000 |
| Rhode Island | $500,000 |
| South Carolina | $1,000,000 |
| South Dakota | $500,000 |
| Tennessee | $500,000 |
| Texas | $1,000,000 |
| Utah | $100,000 |
| Vermont | $300,000 |
| Virginia | $500,000 |
| Washington | $1,000,000 |
| West Virginia | $500,000 |
| Wisconsin | $250,000 |
| Wyoming | $250,000 |
Note: It's worth noting that these requirements can change over time, so it's always best to double-check with your state licensing board to ensure you have the most up-to-date information.
Having general liability insurance is crucial to protect your business from unforeseen accidents or property damage.
However, sometimes basic coverage may not be enough. That's where endorsements to general liability insurance for construction company come in. These additional coverages provide extra protection for your company beyond the basic coverage.
Whether it's coverage for specific equipment or increased limits, adding endorsements to your general liability insurance for construction companies can give you peace of mind knowing that you have comprehensive coverage in case of any unexpected incidents.
Tools and equipment coverage is an endorsement that provides coverage for equipment and tools used by contractors. This coverage can help protect contractors against losses due to theft, damage, or loss of equipment while on a job site. The coverage limit for this endorsement varies depending on the policy and the value of the equipment covered.
Non-owned/hired auto coverage is another endorsement of general liability insurance covering bodily injury or property damage from using a non-owned or hired vehicle. This coverage can be helpful for contractors who use rental or borrowed vehicles for work-related purposes. The coverage limit for this endorsement varies depending on the policy and the type of vehicle covered.
Employer’s liability insurance is an endorsement of general liability insurance that covers lawsuits related to employee injuries or illnesses not covered by workers’ compensation insurance. This endorsement can help protect contractors from costly legal fees and damages in a lawsuit. The limit of this add-on to general liability insurance coverage for contractors varies depending on the policy and the risks associated with the contractor's business.
Contractor’s pollution liability insurance is an endorsement of general liability insurance that covers pollution-related losses caused by a contractor's operations. This coverage can help protect contractors from costly legal fees and damages in case of a lawsuit related to pollution caused by their work. The coverage limit for this endorsement varies depending on the policy and the risks associated with the contractor's business.
Professional liability insurance, or errors and omissions insurance, is an endorsement that provides general liability insurance coverage for construction in case of losses resulting from professional mistakes or negligence. This coverage can be helpful for contractors who provide professional services such as engineering or design. The coverage limit for this endorsement varies depending on the policy and the risks associated with the contractor's business.
Cyber Risks is an endorsement of general liability insurance that covers losses resulting from data breaches, cyber-attacks, or other cyber-related incidents. This coverage can be helpful for contractors who handle sensitive client information or use technology in their business. The coverage limit for this endorsement varies depending on the policy and the risks associated with the contractor's business.
The average cost of general liability insurance for contractors is $38 per month or $540 per year for a $1 million worth of coverage. Factors that affect the cost of premiums are number of employees, annual revenue, claims history, location, and business history. You can get cheap general liability insurance for contractors by:
Having high deductibles
Removing add-ons from the policy if you don’t need them
Availing policy bundle discounts
You might want to look at the table below to get a further idea of the general liability insurance cost for contractors:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $42 | $504 | Best overall; Fastest contractors general liability insurance |
| CoverWallet | $44 | $528 | Comparing contractors general liability insurance quotes online |
| The Hartford | $45 | $540 | General liability insurance for contractors with an optional employee benefits coverage |
| Tivly | $46 | $552 | Comparing contractors general liability insurance quotes over the phone |
| Thimble | $48 | $576 | On-demand general liability insurance for contractors |
| Hiscox | $50. | $600 | Specialized insurance products |
| State Farm | $55 | $660 | Established contractors |
Finally, we have a tool that will allow you to compare construction general liability insurance cost estimates online. Just click on the “Get Quotes” button on this page to start.
Get all the best quotes from leading providers in a click of a button!
Choosing the best contractor general liability insurance provider is crucial for contractors. When it comes to finding the best company, several options exist. Here are some reviews of the companies we recommend. Read to know their pros, cons, and rate for a $1 million general liability policy.
Next Insurance's online platform provides a user-friendly and streamlined purchasing process.
The platform offers a wide range of insurance products, making it a convenient one-stop-shop for small businesses and contractors.
Next Insurance's pricing is competitive, making it an affordable option for small businesses and contractors.
The company provides excellent customer service, with knowledgeable agents to answer questions and support.
NEXT Insurance's policies may not be suitable for contractors with unique or specialized needs that require customized coverage.
The platform's pricing can vary significantly depending on the coverage and risk level, making it difficult to estimate the cost of insurance policies in advance.
Next Insurance is a digital platform that provides insurance policies for small businesses and contractors. The platform offers a variety of insurance products, including general liability, professional liability, and commercial auto insurance. Next Insurance's online application process is quick and easy, and policies can be purchased within minutes. This company’s GL insurance for contractors has a $300,000-$2 million per occurrence and aggregate limit.
Best for: Best overall; Fastest contractors general liability insurance
Average cost: $42 per month
Our rating: 10/10
CoverWallet's online platform provides a user-friendly and streamlined process for purchasing insurance policies.
The platform offers a wide range of insurance products, making it a convenient one-stop-shop for small businesses and contractors.
CoverWallet's highly rated customer service, with knowledgeable agents available to answer questions and support.
The platform offers competitive pricing for its insurance products, making it a budget-friendly option for small businesses and contractors.
Compare contractor liability insurance cost estimates online by looking at the quotes of different companies
CoverWallet's policies may not be suitable for contractors with unique or specialized needs that require customized coverage
CoverWallet is a digital insurance platform that provides construction business liability insurance for small businesses and contractors. The platform offers a variety of insurance products, including general liability, professional liability, workers' compensation, and more.
This company’s commercial general liability insurance for contractors has a $1 million-$2 million per occurrence and aggregate limit with an optional HNOA and terrorism coverage. CoverWallet's online application process is quick and easy, and policies can be purchased within minutes.
The average cost of general liability insurance for contractors varies based on coverage and risk level. But expect to pay premiums at $25 per month or $300 per year.
Best for: Comparing contractor's general liability insurance quotes online
Average cost: $44 per month
Our rating: 10/10
Can underwrite general liability insurance for contractors working in highly specialize industries
Easy claims filing and tracking
General liability insurance doesn’t have a lot of add-ons
The Hartford’s general liability insurance for contractors has a $1 million-$2 million per occurrence and aggregate limit. An optional employee benefits coverage can be added to the policy for a more comprehensive coverage. The Hartford allows you to get a quote online or with the help of an agent.
Best for: General liability insurance for contractors with an optional employee benefits coverage
Average cost: $45 per month
Our rating: 10/10
Tivly's online platform makes it easy for contractors to compare coverage options from different insurance carriers, allowing them to find the best policy at a competitive price
The company offers a wide range of insurance products, including general liability, and workers' compensation
Tivly provides excellent customer service, with knowledgeable agents available to answer questions and support
The platform is user-friendly and offers a streamlined application process
Tivly is a newer insurance provider, which may make some contractors hesitant to use their services
As Tivly is an intermediary platform, the coverage options and pricing may vary depending on the insurance carrier selected
Tivly is a newer insurance provider for contractors that offers a unique approach to coverage. Tivly provides an online platform where contractors can compare and purchase insurance policies from different carriers. This approach will help you find the best general liability insurance for contractors at competitive prices. Call a representative now to get a quote.
Best for: Comparing contractors general liability insurance quotes over the phone
Average cost: $46 per month
Our rating: 8/10
Thimble's on-demand coverage can be customized to suit a contractor's specific needs, making it an ideal choice for those with varying project requirements
The application process is quick and easy, with coverage options available within minutes
Thimble's competitive pricing makes it an affordable option for contractors looking for flexible coverage options
The company provides excellent customer service, with knowledgeable agents to answer questions and support
Thimble's coverage options may not be as comprehensive as other insurance providers, particularly for more complex projects
While Thimble's pricing is generally competitive, contractors with high-risk projects may find the premiums more expensive than other insurance providers
Thimble is a reputable contractor general liability coverage, particularly for those requiring quick and straightforward coverage. They offer on-demand insurance coverage, allowing contractors to purchase policies that meet their specific project or job requirements.
Thimbles online contractors liability insurance quote can be customized. You can adjust policy limits, avail add-ons, and name additional insureds. In case you go for a short-term coverage, Thimble also allows you to determine the policy length yourself. Thimble's online application process is user-friendly and takes just a few minutes to complete.
Best for: On-demand general liability insurance for contractors
Average cost: $48 per month
Our rating: 10/10
Hiscox's specialized insurance products cater to small businesses and contractors' unique needs.
The company provides excellent customer service, with knowledgeable agents to answer questions and support.
Hiscox's online application process is user-friendly and streamlined, making it easy for contractors to purchase insurance policies quickly.
The company offers flexible coverage options and can provide customized policies to meet the specific needs of contractors.
Hiscox's policies can be more expensive than other insurance providers, particularly for contractors with high-risk projects.
The company's coverage options may not be as comprehensive as other insurance providers, particularly for more complex projects.
Hiscox is a global insurance provider that offers specialized insurance products for small businesses and contractors. The company provides various insurance products, including general, professional, and cyber liability insurance.
Hiscox’s commercial liability insurance for contractors can be customized by availing upgrades such as non-owned/hired auto liability coverage, tools and equipment coverage, and media liability coverage.
Hiscox's online application process is straightforward, and policies can be purchased within minutes. The average cost of general liability insurance for contractors varies based on the level of risk involved and the extent of coverage provided. Nonetheless, expect for premiums to be $30 per month or less.
Best for: Specialized insurance products
Average cost: $50 per month
Our rating: 9/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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