What contractor general liability insurance covers
- A customer or passer-by hurt by your work, tools, or materials
- Damage you cause to a client's home, building, or belongings
- Injuries or damage that show up after the job is done (completed operations)
- Legal defense costs if someone sues you over a covered claim
- Advertising injury, such as a claim that your ad copied someone else's
What contractor general liability insurance does not cover
- Injuries to your own employees (that is workers comp)
- Damage to your own tools or equipment
- Accidents in your work vehicle (that is commercial auto)
- Fixing your own faulty work, in most policies
How much does contractor general liability insurance cost?
Median-based figure for construction businesses buying through Insureon, mostly under five employees. Riskier trades pay more.
Source: Insureon, construction business insurance cost (updated July 2026). A typical figure, not a quote.
Why clients ask for it
Homeowners, property managers, and general contractors want proof that an accident on their job will not land on them. That proof is a certificate of insurance (COI) showing your general liability limits. Many insurers can issue one online the same day you buy.
How much coverage to buy
Most trade policies start at $1 million per occurrence and $2 million aggregate. Commercial jobs and GCs often require those limits or higher, and sometimes ask to be named as an additional insured. Check the contract before you buy so the policy matches what the job requires.
What changes the price
Your trade sets the baseline, since roofing and electrical work carry more risk than painting or cleaning. Revenue, years in business, claims history, the state you work in, and the limits you pick move it from there.
Need to send proof to a client? See our certificate of insurance guide.
Which trades need contractor general liability insurance?
How often each trade needs this coverage, based on what clients, GCs, and states usually ask for.
| Trade | How common | Why |
|---|---|---|
| Handyman insurance | Usually required | The certificate clients and property managers ask for |
| Electrician insurance | Usually required | GCs and clients require it, and some states tie it to your license |
| Plumber insurance | Usually required | Water damage claims make this the big one for plumbers |
| HVAC insurance | Usually required | Clients and property managers require it |
| Landscaping insurance | Usually required | HOAs and commercial clients require it |
| Painter insurance | Usually required | Overspray and spills on client property |
| General contractor insurance | Usually required | Owners and lenders require it, often with higher limits |
| Carpenter insurance | Usually required | Clients and GCs ask for it on every job |
| Flooring insurance | Usually required | Damage to client homes and furniture |
| Drywall insurance | Usually required | GCs and clients require it |
| Concrete insurance | Usually required | Slip and surface claims are common |
| Janitorial insurance | Usually required | Commercial clients require it |
| Pressure washing insurance | Usually required | Etched glass, stripped paint, and slips |
| Fencing insurance | Usually required | Buried lines, sprinklers, and post holes |