General contractors insurance

General contractors insurance is a type of business insurance that protects general contractors against liability and property damage claims during construction projects. Most policies include general liability coverage, which pays for bodily injury or property damage lawsuits caused by contractors’ employees, as seen in slip-and-fall accidents at job sites.

Policies often cover subcontractor actions, such as drywall installers or electricians causing accidental fire or water damage. Standard exclusions remove intentional acts and faulty workmanship from coverage, requiring additional endorsements for these risks.

Certificate holders–such as project owners or lenders–require proof of active general contractors insurance before work begins, according to state regulations like California Business and Professions Code Section 7071.6. Contractors face required minimum liability limits ranging from $500,000 to $2 million per occurrence in states like New York, Florida, and Texas, as mandated by local licensing boards.

Premiums average between $1,200 and $3,500 per year for small firms with clean records and no high-rise building exposures, as confirmed by YourInsurance.info (Your Insurance Info). Claims history directly affects renewal rates; one large claim can increase annual costs by up to 40%.

Carriers–including The Hartford, Travelers, and Nationwide–offer tailored options for residential builders versus commercial general contractors. Companies combine general liability with workers’ compensation when hiring laborers on payroll or working on multi-story projects.

Coverage lapses result in revoked licenses and stop-work orders, enforced by municipal agencies such as New York City’s Department of Buildings and Florida’s DBPR. Proof of coverage must list all additional insured parties–such as property developers or architects–to avoid legal disputes after third-party injuries on site.