General liability insurance for contractors and construction businesses

From carpenters and welders to handymen and general contractors, construction businesses and contractors face high risks.

General liability insurance offers basic protections by helping pay expenses related to third-party bodily injuries and property damage at your place of business.

A general liability insurance certificate also helps you meet the insurance requirements of contracts, leases, and professional licenses.

If a visitor is injured at your jobsite or property damage occurs during a renovation, for instance, general liability insurance can cover medical bills or the cost of repairs. This policy provides liability insurance coverage related to:

• Customer personal injuries
• Customer property damage
• Libel and slander
• Product liability

Whatever your specialty, general liability insurance can provide crucial protection against common and unforeseen risks.

Any construction company that handles sensitive information, including customers' credit cards, should invest in cyber insurance. Also called data breach insurance, this coverage helps businesses recover from a data breach or cyberattack. It can help pay for:

• Notifying affected customers
• Cyber extortion payments
• Credit monitoring services
• Data recovery
• Data breach investigations

Data breach costs can add up quickly, and a cyberattack could knock your business offline for a significant time. You can add this coverage to your general liability policy as an endorsement to gain financial protection against common cyber exposures.

If you run a small construction company or are an independent contractor, there are ways you can save on your business insurance. You may be able to bundle general liability coverage with commercial property insurance in a business owner’s policy (BOP). A BOP offers more complete coverage at a lower cost than purchasing each policy separately. Businesses that are eligible for a BOP typically:

• Have fewer than 100 employees
• Have a small office or workplace
• Make less than $1 million in annual revenue
• Operate in a low-risk industry
• Need less than 12 months of business interruption insurance

Talk to a licensed Insureon agent to find out if your construction business is eligible.

While commercial general liability insurance covers basic construction industry risks, it does not offer absolute protection. Other policies to consider include:

Workers’ compensation insurance: Workers’ comp covers medical costs for work-related injuries and illnesses. Most states require this coverage for businesses with employees.

Commercial auto insurance: This policy covers the cost of an accident involving your business vehicle. Almost every state requires this coverage for business-owned vehicles.

Contractor’s tools and equipment insurance: This form of inland marine insurance helps pay for the repair or replacement of a contractor’s tools and equipment if they are lost, stolen, or damaged.

Professional liability insurance: Also called errors and omissions insurance (E&O), this policy covers professional mistakes and oversights, such as a contractor missing a deadline for a project.

Surety bonds: These bonds reimburse your clients for financial losses if your company is unable to fulfill the terms of its contract.

Builder’s risk insurance: Builder’s risk insurance can pay for damage done to a structure still under construction, such as a fire or vandalism at a construction site.

Contractors pollution liability (CPL) insurance: This type of environmental insurance covers pollution liability risks for contractors and their subcontractors.

Additional insured endorsement: This extends coverage to anyone other than the policyholder, and can be required by clients, contractors, and subcontractors depending on the project or contract.

Are you ready to safeguard your construction or contracting business with a general liability insurance policy? Insureon helps contractors find insurance from top-rated insurance companies with one easy online application.

You can also speak with a dedicated Insureon insurance agent to learn which policies might suit your business best, as well as any exclusions you might face. Once you find the right policy, you can begin coverage and get a certificate of insurance in less than 24 hours.