General liability insurance for contractors and construction businesses

From carpenters to general contractors, construction businesses and contractors face high risks.

General liability insurance offers basic protections by helping pay expenses related to third-party bodily injuries and property damage at your place of business.

A general liability insurance certificate also helps you meet the insurance requirements of contracts, leases, or professional licenses.

If a visitor is injured at your jobsite or property damage occurs during a renovation, for instance, general liability insurance can cover medical bills or the cost of repairs. This policy provides liability insurance coverage related to:

• Customer injuries
• Customer property damage
• Libel and slander
• Product liability

Below, find details on how general liability insurance protects your business.

Any construction company that handles sensitive information, including customers' credit cards, should invest in cyber liability insurance. Also called data breach insurance, this coverage helps businesses recover from a data breach or cyberattack. It can help pay for:

• Notifying affected customers
• Cyber extortion payments
• Credit monitoring services
• Data recovery
• Data breach investigations

Data breach costs can add up quickly, and a cyberattack could knock your business offline for a significant time. You can add this coverage to your general liability policy as an endorsement to gain financial protection against common cyber exposures.

If you run a small construction business or are an independent contractor, you may be able to bundle general liability coverage with commercial property insurance in a business owner’s policy. A BOP offers more complete coverage at a lower cost than purchasing each policy separately. Businesses that are eligible for a BOP typically:

• Have fewer than 100 employees
• Have a small office or workplace
• Make less than $1 million in annual revenue
• Operate in a low-risk industry
• Need less than 12 months of business interruption insurance

Talk to a licensed Insureon agent to find out if your construction business is eligible.

While commercial general liability insurance covers basic construction industry risks, it does not offer absolute protection. Other policies to consider include:

Workers’ compensation insurance: Almost every state requires this coverage for construction businesses with employees. Even when it's not required, it's a wise investment as health insurance plans may deny claims for work-related injuries.

Commercial auto insurance: This policy covers vehicles owned by your construction or contracting business. It typically pays for accidents and damages related to theft, weather, and vandalism.

Contractor’s tools and equipment insurance: This form of inland marine insurance helps pay for the repair or replacement of a contractor’s tools and equipment if they are lost, stolen, or damaged.

Professional liability insurance: Also called errors and omissions insurance, this policy covers professional mistakes and oversights, such as a contractor missing a deadline for a project.

Surety bonds: These bonds reimburse your clients for financial losses if your company is unable to fulfill the terms of its contract.

Builder’s risk insurance: Builder’s risk insurance can pay for damage done to a structure still under construction, such as fire or vandalism at a construction site.

Are you ready to safeguard your construction or contracting business with a general liability insurance policy? Insureon helps contractors find insurance from top-rated insurance companies with one easy online application. Once you find the right policy, you can begin coverage and get a certificate of insurance in less than 24 hours.