Understanding General Contractors Insurance

As a general contractor, you’re responsible for managing construction projects from start to finish. You have a lot on your plate, from hiring subcontractors to obtaining permits and adhering to safety and building codes. All of this comes with risks, which is why having general contractors insurance is essential.

What is General Contractors Insurance?

General contractors insurance is a type of business insurance that provides coverage for risks associated with construction projects. It usually includes liability insurance, property insurance, and worker’s compensation insurance. Depending on your policy, it may also cover tools and equipment, pollution liability, and more.

Liability Insurance

Liability insurance protects you from lawsuits and claims related to property damage, bodily injury, and advertising injury. For example, if a subcontractor accidentally damages a client’s property, you could be sued for the cost of repairs. Liability insurance would cover your legal fees, court costs, and any damages you’re ordered to pay.

Property Insurance

Property insurance covers damage or loss to your property, including your office, tools, equipment, and materials. For example, if your office is destroyed in a fire, property insurance would cover the cost of rebuilding or replacing it.

Worker’s Compensation Insurance

Worker’s compensation insurance covers medical expenses and lost wages if an employee is injured or becomes ill as a result of their work. It’s required by law in most states if you have employees, even if they’re subcontractors. Worker’s compensation insurance can also protect you from lawsuits related to employee injuries.

Do You Need General Contractors Insurance?

If you’re a general contractor, you absolutely need general contractors insurance. Without it, you could be personally liable for damages or injuries that occur during a construction project. Even if you’re not at fault, defending yourself in court can be costly and time-consuming.

Additionally, many clients will require you to have insurance before they’ll hire you. They want to protect their own interests and ensure that they won’t be held liable if something goes wrong.


What does general contractors insurance cover?
It typically covers liability insurance, property insurance, and worker’s compensation insurance, but may also include other types of coverage.
Can I get by without general contractors insurance?
You could, but you’d be taking a huge risk. If something goes wrong during a construction project, you could be personally liable for damages or injuries. Plus, many clients will require you to have insurance.
How much does general contractors insurance cost?
The cost of insurance depends on a variety of factors, including your location, the size of your business, the types of projects you work on, and more. You can get a quote from an insurance provider to get an idea of how much it will cost for your specific needs.
What happens if I don’t have insurance and someone sues me?
You could be personally liable for any damages or injuries that occur, which could be financially devastating. You could also face legal fees and court costs.
Do I need insurance if I only work on small projects?
Yes, even small projects can result in property damage or injuries. It’s better to be safe than sorry and protect yourself with insurance.


General contractors insurance is a crucial aspect of running a construction business. By protecting yourself from risks and liability, you can focus on what you do best: managing construction projects.

If you’re in need of general contractors insurance, be sure to shop around and compare policies from different providers. Look for a policy that meets your specific needs and fits within your budget. With the right insurance coverage, you can rest easy knowing that you’re protected no matter what may happen on the job site.