General Contractors Insurance Guide
Industry Overview
General contractors oversee construction projects and face complex risks including liability for subcontractor work, property damage, employee injuries, and contractual obligations. Comprehensive insurance protection is essential for managing these risks.
Common Risks for General Contractors
Subcontractor Liability
Claims arising from work performed by subcontractors you hire.
Construction Defects
Claims alleging faulty workmanship, design flaws, or materials failure.
Employee Injuries
Workers' compensation claims for injuries sustained on job sites.
Equipment Theft
Loss of tools, equipment, or materials from job sites.
Essential Insurance Coverages
General Liability
Covers third-party bodily injury and property damage claims arising from your construction operations.
Workers' Compensation
Required coverage for employee injuries and illnesses sustained on the job.
Commercial Auto
Covers vehicles used for business purposes, including liability and physical damage coverage.
Contractors' Equipment
Protects your tools, equipment, and materials from theft, damage, or loss while on job sites or in transit.
Builder's Risk
Covers buildings and structures under construction against damage from fire, wind, theft, and other perils during the course of construction.
Professional Liability
Also called contractors' errors and omissions, covers claims arising from professional services like design, project management, or consulting.
Umbrella Liability
Provides additional liability protection beyond your underlying policy limits for catastrophic losses.
Frequently Asked Questions
Do I need workers' compensation if I only use subcontractors?
Requirements vary by state, but you may still need coverage for any direct employees. Some states require coverage if subcontractors don't have their own workers' comp. Check your state's specific requirements.
What is waiver of subrogation and why do clients ask for it?
A waiver of subrogation prevents your insurance company from seeking compensation from a third party (like a client) that caused a loss. Clients often require this to protect themselves from being pulled into disputes between you and your insurer.
How do I verify my subcontractors have insurance?
Always request certificates of insurance (COIs) from subcontractors before they begin work. Verify the coverage dates, limits, and that your company is listed as additional insured if required by contract.