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General Contractor Insurance
Get customized protection for your general contracting businesses
This coverage provided and serviced by affiliated and third-party insurers.. Read more
Tailored insurance for general contractors
General contractors keep big projects moving. They manage timelines, materials, and subcontractors so everything comes together smoothly. The right insurance for general contractors can protect your projects, team, equipment, and reputation. Whether you're developing residential homes or constructing commercial buildings, you need reliable coverage for your contracting business.
What is general contractor insurance?
General contractor insurance is customizable business coverage for construction companies that are responsible for things like materials, equipment, and worksite safety. Your policy should start with standard protection for workers, along with third-party injuries and property damage. You may also want to cover tools and equipment, work trucks, and even your workmanship. We can help you secure the coverage you need for your specific risks.
Start an online quote or speak with one of our insurance specialists at Progressive Commercial to help find the right protection for your business.
Do general contractors need insurance?
Yes, general contractors usually need insurance. They oversee high-value construction projects and challenging jobs, like plumbing, electrical work, and foundation pours. With so much happening on-site, the potential for injuries and accidents can be high. Specialized insurance helps manage these risks and protects your business from costly claims.
States, customers, and banks might require proof of certain types of coverage. Some clients may also want to be added as an additional insured on your policy before you can move forward with a project.
When you have a policy with Progressive Commercial, getting a certificate of insurance with your coverage details is simple. We can also work with you to add a blanket additional insured endorsement, which automatically extends liability coverage to your clients.
What are general contractor insurance requirements?
Because of the high-risk nature of the work, most states require general liability insurance for contractors. You'll probably need to purchase it from the non-admitted insurance market, which is also known as excess and surplus lines (E&S).
Understanding the E&S market for general contractor insurance
E&S carriers support professions that most standard insurance companies don't cover. They follow different regulations, which gives them the flexibility to design policies for complex or high-risk fields. Progressive Commercial works with these non-admitted carriers to offer coverage for general contractors handling demanding jobs.
You can get the same amount of general liability protection in the E&S market that you'd get with standard insurers. You'll also receive the same level of service, including access to insurance agents and the ability to file claims.
Who needs general contractors insurance?
Businesses that manage construction projects usually need to have specialized insurance for general contractors. This includes work on new builds, renovations, and restorations. The following professions should consider this coverage:
- Home improvement companies
- Construction companies
- Residential and commercial builders
- Design-build firms
Whether you operate as a sole proprietorship or run an LLC, a customized policy for general contractors insurance through Progressive Commercial can give you the protection you need.
Does general contractors insurance cover subcontractors?
General contractors insurance usually doesn't cover subcontractors because they aren't permanent employees. As a result, your policy may not cover property damage or injuries caused by their work.
If your subcontractors don't have insurance, you might have coverage gaps on your job site. There are a couple of ways to handle this situation with your skilled tradespeople:
- Only work with subcontractors who have their own insurance. This condition guarantees that every worker on your job site is protected, even if your policy doesn't cover them. Asking for a COI and to be added as an additional insured on their policy are also good practices.
- Extend your insurance coverage to your subcontractors. Adding temporary employees to your policy increases your premium, but some general contractors recover this money as an administrative fee on subcontractors' pay.
Make sure you understand who's covered and what's protected before starting a job. Get a quote for general contractors insurance and keep your business secure.
Types of insurance for general contractors
The most essential insurance protection for general contractors is general liability, but you might also need to cover your workers, vehicles, and equipment. The following are common coverages to consider when deciding on your insurance.
General liability (GL)
Covers injury or property damage to third parties
General liability (GL)
Covers injury or property damage to third parties
General liability insurance for contractors covers common risks that can affect your business. At its core, it helps with injuries and property damage to others. It also includes products-completed operations coverage, which can help if something goes wrong with your finished work. Learn about the benefits of GL protection.
Example: Your team installed defective flashing around windows in a new home. Water leaked in and damaged your customer's walls and floors. Even though the job was complete, your general contractor liability insurance could help cover repair and replacement costs.
Builders risk
Protection for your new construction
Builders risk
Protection for your new construction
Builders risk insurance protects property that's under construction, along with the fixtures and equipment that will be part of the final build. This can include foundations, materials, and systems like HVAC and plumbing.
Example: A supplier delivers four HVAC units at the end of the day on Friday. Unfortunately, they're vandalized over the weekend. Builders risk can pay to replace the damaged units.
Business owners policy (BOP)
Combines liability and property coverage in one package
Business owners policy (BOP)
Combines liability and property coverage in one package
A business owners policy packages liability with commercial property insurance for things like buildings, storage warehouses, furniture, and computers. You can also add BOP protections for tools and equipment and machinery breakdown.
Example: A fire in your storage warehouse damages ladders, tools, and other supplies. Your BOP coverage can pay to replace your materials and repair the building.
Commercial auto
Covers work vehicles and drivers
Commercial auto
Covers work vehicles and drivers
You'll need to get commercial auto coverage for your work vehicles, including dump trucks, pickup trucks, and trailers. Find out how much commercial auto insurance costs and what the requirements are for auto insurance by state.
Example: One of your workers accidentally backs a work truck into a customer's garage door. A commercial auto policy can help with paying to repair or replace the door.
Errors and omissions (E&O)
Covers mistakes, miscommunications, and oversights
Errors and omissions (E&O)
Covers mistakes, miscommunications, and oversights
E&O insurance, also called professional liability, protects against claims of negligence, errors, and omissions related to your advice, services, and workmanship. It helps you address the customer's issue and covers defense and settlement costs if they sue, regardless of whether you made a mistake.
Example: A minor error causes a new commercial project to fail final inspection because it doesn't meet the municipal building codes. The delay costs your client money, and they sue you to recover their loss. Your E&O contractor insurance can help cover legal expenses and settlement costs.
Workers' compensation
Protects employees in case of injury and illness
Workers' compensation
Protects employees in case of injury and illness
Workers' comp covers employees who get injured or sick because of their job. It helps pay their medical bills, rehabilitation costs, and lost wages. Review information on workers' compensation costs and state requirements for workers' comp coverage.
Example: An employee falls from scaffolding on the exterior of a building under construction. Workers' compensation can cover their ER visit, surgery, rehab, and lost wages until they're able to return to work.
How much does general contractor insurance cost?
Contractors insurance rates aren't one-size-fits-all. A general contractor's insurance cost is determined by factors like:
- Coverage selections
- Industry and trade
- Number of employees
- Location
- Vehicles
- Value of tools and equipment
If your work requires E&S insurance, your costs will probably be higher. General contractors take on greater responsibilities and risks than specialized contractors, like a handyman or electrician, and that's reflected in their policy price.
The easiest way to find out what you'll pay for insurance is to get a general contractor insurance quote online.
Why choose Progressive Commercial for general contractor insurance
Progressive Commercial has been insuring businesses like yours for more than 50 years. We work with trusted E&S carriers to provide reliable coverage for the risks you face. Start a quote online or talk to an agent to find general contractor insurance near you. We offer flexible options and expert customer service.
