General Contractor Insurance in Georgia
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General contractor insurance in Georgia

Learn about business insurance requirements and the most common policies for general contractors in Georgia.

Which insurance policies are required for general contractors in Georgia?

General contractors in Georgia may need the following types of coverage to comply with state laws:

General liability insurance icon

General liability insurance

General liability insurance is the foundation of a general contractor’s protection. It covers accidents that damage a client's property or cause a bodily injury, along with libel and other advertising injuries.

This policy is part of every Georgia contractor's license requirements. The type of work you do determine how much coverage you're required to carry.

Contractors in Georgia may also need this policy to sign a commercial lease or meet the terms of a client's contract. Adding commercial umbrella insurance can boost the coverage limits on general liability insurance and other policies.

Workers’ compensation insurance icon

Workers' compensation insurance

If you own a construction or home improvement business with three or more employees, Georgia state law requires your business to carry workers’ compensation insurance. You will also need to submit proof of workers' compensation, if required, as part of the state licensing process.

Workers' compensation insurance covers medical bills and disability benefits when an employee is injured on the job or develops an occupational illness. It's a key policy for the construction industry and related fields due to the hazards of working with heavy equipment and machinery.

Sole proprietors may not need workers' comp for their Georgia general contractor license, but it's still a good idea to carry this coverage. Personal health insurance doesn't cover work-related injuries, so it can save you from out-of-pocket medical expenses.

Commercial auto insurance icon

Commercial auto insurance

If your business owns a vehicle, you must carry commercial auto insurance that meets Georgia's minimum requirements for auto liability insurance.

Commercial auto insurance protects vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.

Surety bond icon

Contractor surety bonds

Licensure requirements in Georgia sometimes include a surety bond, depending on the type of license (electrical work, plumbing, etc.).

A surety bond guarantees reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.

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What other policies are common for general contractors in Georgia?

Depending on the work you do and the terms of your contracts, you may need additional business insurance policies. General contractors in Georgia often buy the following types of coverage.

Business owner’s policy icon

Business owner's policy (BOP)

Licensed contractors who work independently or own a small company often qualify for a business owner’s policy. This policy bundles general liability coverage with commercial property insurance at a discount.

A BOP is the top policy recommended by Insureon's expert agents, as it offers protection against common liability claims and business property coverage at an affordable price.

Contractor’s tools and equipment coverage icon

Contractor’s tools and equipment insurance

Contractor’s tools and equipment insurance protects a general contractor’s saws, nail guns, drills, and other construction equipment. Look to this policy or inland marine insurance to protect equipment that moves from place to place.

Professional liability insurance icon

Professional liability insurance

Professional liability insurance provides protection when a general contractor is sued for a professional mistake, such as a missed deadline on a construction project. This policy is also called errors and omissions insurance (E&O).

Builder’s risk insurance icon

Builder’s risk insurance

Builder’s risk insurance can cover fires, vandalism, equipment theft, and other damage done to a structure still under construction. Project owners may require this coverage for contractors, or you may be able to join their policy as an additional insured.

Environmental insurance icon

Contractors pollution liability insurance (CPL)

Contractors pollution liability insurance covers costs related to pollution, such as a lawsuit alleging harm caused by silica dust from a construction site. It's sometimes referred to as environmental insurance.

How much does business insurance cost for general contractors in Georgia?

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General contractors in Georgia who buy policies from Insureon pay on average:

General liability: $103 per month
Workers' compensation: $321 per month
Commercial auto: $246 per month

Several factors affect the cost of general contractor insurance, including:

  • Type of building construction, such as townhouses, multifamily homes, or offices
  • Business property and equipment
  • Business income and size
  • Years of work experience
  • Policy limits and deductibles

When do you need a general contractor business license in Georgia?

In Georgia, from Atlanta to Savannah, contractors who take on projects worth $2,500 or more must be registered and licensed.

There are four tiers of general contractor work, each with their own application process:

  • General contractor: Works on residential and commercial properties without limitations
  • General contractor-limited tier: Limited to contracts of $500,000 or less
  • Residential-basic contractor: Works on family homes, up to a limit of a two-family residence or townhouse
  • Residential-light commercial contractor: Works on multifamily homes and light commercial buildings

Licensure requirements may include:

  • General liability insurance
  • Proof of financial responsibility ($25,000 in net worth or a surety bond)
  • License application fee
  • Background check
  • Employment affidavit
  • Contractor exam

View details in the Georgia Secretary of State's How-to Guide for General Contractors.

How do I get general contractor insurance?

Insureon’s industry-leading technology helps general contractors in Georgia save time and money shopping for insurance. Start a free online application to get quotes from top-rated U.S. providers.

To make the application go quicker, have this information ready:

  • Workforce details, such as the number and types of employees
  • Current and projected revenue
  • Business partnerships
  • Insurance history and prior claims
  • Commercial lease insurance requirements

A licensed insurance agent can answer your questions and help you find the right coverage for your business. Contractors can get their certificate of insurance shortly after they apply for quotes and pay for a policy.

Updated: October 13, 2023
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