General contractors need business insurance to safeguard them against financial loss. This coverage should include third-party bodily injury and property damage liability as well as protection from libel, slander, and defamation claims. However, getting this insurance can be detailed and involved,
So read the information below, and hopefully you can pick it up.
Coverage
Although general liability insurance isn’t required by California law, it can provide financial protection in the event of third-party property damage or bodily injury claims. According to this site, general liability covers both legal fees and settlement costs that might result from these types of incidents; it doesn’t, however, cover medical expenses or lost wages associated with working construction projects; that type of workers’ compensation must be in place as standard practice across most employers in California.
Cost of general contractor policies varies significantly based on a range of factors, and shoppers should carefully weigh all their options before making their final decisions. Some are unavoidable while others may alter its cost in unexpected ways such as discounts for bundling with other types of insurance policies or by tailoring rates according to specific policy details such as deductibles or limits.
Contractors find it simple and accessible to obtain liability policies online, thanks to many insurers offering instant quote forms that allow contractors to submit for instantaneous estimates; innovative tech tools even allow instant price comparison for similar coverage using real-time data analysis. Within most companies’ rules and regulations, you’ll find that no matter what service they provide – they most likely carry this coverage.
Policy Limits
Contractor liability insurance safeguards your business against the financial impact of third-party bodily injury and property damage claims against it, as well as associated legal fees in its defense. Learn more by going to contractorbond.org and reading up on it. However, you should know that it does not cover injuries suffered by employees; for this you need workers’ compensation coverage instead. Some clients may require that general liability is in place prior to working with you.
Most insurance providers provide an array of policy limits to meet your business needs, with common limits being $1 million per occurrence and $2 million aggregate with $2 million for products/completed operations; you may be able to increase these amounts with an excess or umbrella policy.
An insurance agent can assist in helping you select appropriate limits for your contractor liability policy, taking into account factors like your risk exposure, previous loss history and budget. They’ll also consider what projects you’re working on as well as any contracts with clients that might impact its limits.
Accurately filling out your application and providing projected information will allow your insurer to assess the risk exposure. Expect that during your policy term your projections could change and an audit performed; depending on what it shows, your premium could fluctuate accordingly.
Excess Coverage
Certain contractors whose work is labor intensive might need additional protection against property or bodily injury claims that exceed the standard limit. This also holds true if clients are extremely demanding or possess substantial assets; clients often request proof of coverage before signing contracts with contractors. Because of this, many governmental entities require contractors to disclose whether or not they possess commercial liability policies, refusing to work with those without coverage.

There are two different types of excess liability policies: occurrence and claims-made. An occurrence policy covers claims from incidents occurring during the policy period regardless of when they were reported to the insurer; in contrast, claims-made policies only pay out when both claims – from incidents covered by primary coverage – are reported during that time frame and reported during policy renewal period.
Premiums for an excess liability policy depend on various factors, including the size and type of the business, its industry and perceived risk level. Typically, higher limits and greater exposure will increase premium costs. It may make more financial sense to bundle excess policies with other coverage such as business owner’s policies (BOP) to help keep premium costs under control.
Policy Review
Contractors have access to several forms of business insurance policies, each providing unique coverage. General Liability (GL) is one of the more popular policies used by contractors, providing protection from risks such as third-party property damage and injuries.
Contractors should review all available policies to compare them and decide between claims-made and occurrence policies, the latter of which typically provide more comprehensive coverage at lower cost.
An additional factor when shopping around for contractor general liability insurance policies is selecting appropriate deductibles and coverage limits. Businesses willing to absorb more of the costs for covered claims typically save money on premiums; however, choosing higher deductibles or lower limits will reduce coverage provided by a policy.
Before hiring contractors for any project, some clients may stipulate certain forms of insurance coverage are in place before signing contracts for work on construction sites. For instance, building owners might stipulate that all contractors possess at least $1 million in commercial general liability coverage before signing contracts to work on construction sites.
Also read: When the Unexpected Happens: How Executive Liability Insurance Can Save Your Business