Insurance

General Liability Insurance for Contractors Guide

Evaluate contractor general liability coverage by trade, project scope, limits, completed operations, subcontractors, additional insured requirements and exclusions.

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Decision framework

What this guide helps you evaluate

General contractors and specialty trades evaluating commercial general liability coverage against project, subcontractor and contract requirements.

This page is designed to help you compare the moving parts, organize due diligence and ask better questions before you commit money, sign a contract or change an operating process.

Contractor liability programs should be evaluated around actual operations, completed work and contractual requirements rather than premium alone.

Additional insured, waiver, primary-and-noncontributory and completed-operations requirements can materially affect whether a policy satisfies a construction contract.

What to compare first

  • Premises and operations coverage
  • Products and completed operations
  • Per-occurrence and aggregate limits
  • Subcontractor exposure and certificates
  • Additional insured endorsements
  • Contractual liability and indemnity
  • Residential, height, excavation or other trade-specific exclusions
  • Umbrella or excess liability coordination

Step-by-step process

  1. 01

    Describe trades, project types, annual payroll, subcontractor cost and revenue accurately.

  2. 02

    Collect representative owner and general-contractor insurance requirements.

  3. 03

    Request quotes with the same limits, deductibles and completed-operations scope.

  4. 04

    Review exclusions and endorsements with a qualified broker before comparing premium.

  5. 05

    Establish a process for subcontractor certificates, additional insured requests and renewal tracking.

Common mistakes and risk checks

  • Buying a low-cost policy with exclusions that remove the contractor's main operations.
  • Assuming a certificate of insurance changes the underlying policy.
  • Failing to track subcontractor insurance and completed-operations obligations.
  • Accepting contractual indemnity requirements that are broader than the insured risk transfer.

Documents and evidence to collect

  • Trade and operation description
  • Revenue, payroll and subcontractor cost
  • Project history and future pipeline
  • Claims loss runs
  • Sample construction contracts
  • Current subcontractor insurance requirements

Questions to ask before approval

  • Are the contractor's actual trades and project types covered without material exclusions?
  • What completed-operations period and limits apply?
  • Which additional insured forms can the insurer provide?
  • How are subcontractors treated in premium audit and claims?

Primary and official references

Rules, pricing and requirements can change. Use these sources to verify the latest details that apply to your situation.