General Contractors Coverage Guide
GCs face compound liability — responsible for their own work, their subs, job site safety, and project completion. A single claim can involve multiple coverage types simultaneously.
Critical Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Third-party bodily injury and property damage caused by your operations — on the job site and after you leave. Includes completed operations (damage discovered after the job is done) and personal/advertising injury.
Common misconception
People think GL covers everything that goes wrong on a job. It doesn't. It won't cover your employees getting hurt (that's WC), your own defective work being redone (that's your cost), pollution you cause (that's a separate policy), or vehicles (that's commercial auto).
What it does NOT cover
Your own employees' injuries. Damage to your own work or property. Pollution and environmental contamination. Professional design errors. Contractual liability beyond insured contracts. Expected or intended damage.
The gap — what happens without it
You finish a bathroom remodel. Three months later, a pipe connection you made fails and floods the unit below — $80K in damage to someone else's property. Your GL's completed operations coverage pays this. But if you dropped that coverage to save $400/year (some carriers offer this 'discount'), you're writing that check yourself.
What drives your premium
Annual revenue, number of employees, subcontractor costs, type of work (new construction vs. renovation), claims history, years in business
Endorsements to ask about
Additional insured for project owners/GCs. Primary & non-contributory wording. Waiver of subrogation. Per-project aggregate (if you run multiple jobs simultaneously).
Workers' Compensation
Covers employee injuries and illnesses on the job
What it covers
Medical expenses, lost wages, rehabilitation, and death benefits for employees injured on the job. Also covers occupational diseases (hearing loss from equipment, repetitive stress injuries). Includes employer's liability for lawsuits from injured workers.
Common misconception
Owners think they can skip WC if they only have 1099 subcontractors. In most states, if a sub doesn't carry their own WC, YOU become responsible for their injuries. The state doesn't care about your contract — they care about who controls the work.
What it does NOT cover
Intentional self-inflicted injuries. Injuries while committing a crime. Independent contractors with their own valid WC policies. Sole proprietors/partners (in most states, they can exempt themselves).
The gap — what happens without it
Your framing sub's laborer falls from scaffolding — broken back, $340K in medical bills, 8 months of lost wages. You assumed the sub had WC. He didn't. Your WC policy now covers that worker as a 'statutory employee,' and your experience mod spikes for the next 3 years, costing you $15K+ in additional premium.
What drives your premium
Payroll by class code, experience modification rate (EMR), state, industry class codes, safety programs, claims history
Endorsements to ask about
Voluntary compensation (for excluded officers who want coverage). Alternate employer endorsement (if you lease employees). USL&H if working near navigable waters.
Commercial Auto
Covers vehicles used for business purposes
What it covers
Liability and physical damage for vehicles titled to your business — trucks, vans, trailers. Covers you when your driver causes an accident, and covers damage to your own vehicles from collision, theft, vandalism, weather.
Common misconception
People think their personal auto policy covers them when they drive to a job site. It doesn't — most personal auto policies exclude 'business use' beyond commuting. If you're hauling materials or tools, you need commercial auto.
What it does NOT cover
Vehicles not listed on the policy. Employees using personal vehicles (that's hired & non-owned auto). Cargo being transported (that's inland marine or motor truck cargo). Intentional damage. Racing or speed contests.
The gap — what happens without it
Your foreman drives a company F-250 pulling a trailer of materials. He rear-ends a minivan at a red light — two passengers injured, $180K in medical claims. Without commercial auto, your personal policy denies the claim because the vehicle is business-titled and was being used commercially. You're personally liable.
What drives your premium
Number of vehicles, vehicle type/weight, radius of operation, driver MVRs (motor vehicle records), cargo type, annual mileage
Endorsements to ask about
Hired auto physical damage (covers rental vehicles). Trailer interchange. Broadened pollution coverage for fuel spills from your vehicles.
Important Coverage
Commercial Umbrella
Extends limits above your primary policies
What it covers
Extra liability limits above your GL, auto, and employer's liability. If a claim exceeds your primary policy limits, the umbrella kicks in. Also can provide broader coverage for some claims that primary policies exclude.
Common misconception
People think a $1M GL policy is enough. For a GC, one serious injury on a job site — a fall, a trench collapse, an electrocution — can easily exceed $1M in medical costs and legal fees. The umbrella is what keeps a catastrophic claim from bankrupting your company.
What it does NOT cover
Punitive damages (in some states). Claims not covered by any underlying policy. Pollution (unless underlying pollution policy exists). Professional liability claims. Workers' comp claims (the statutory coverage is already unlimited for medical).
The gap — what happens without it
A pedestrian walks past your job site and a piece of scaffolding falls, causing a traumatic brain injury. The claim settles for $2.8M. Your $1M GL pays its limit. Without a $2M umbrella, you owe the remaining $1.8M personally — which likely means losing your business, your equipment, and your personal assets.
What drives your premium
Underlying policy limits, type of work, revenue, fleet size, claims history, number of employees
Endorsements to ask about
Ensure the umbrella follows form over ALL underlying policies (GL, auto, EL). Ask about defense costs — are they inside or outside the limit?
Inland Marine (Tools & Equipment)
Covers tools, equipment, and materials in transit or at job sites
What it covers
Your tools, equipment, and materials — whether they're at a job site, in transit, or in temporary storage. Covers theft, vandalism, fire, and accidental damage. Can include leased/rented equipment.
Common misconception
People think their commercial property policy covers tools at job sites. It usually doesn't — commercial property covers items at your listed premises. Once tools leave your shop, they're typically uninsured unless you have inland marine.
What it does NOT cover
Normal wear and tear. Mechanical/electrical breakdown (unless added). Mysterious disappearance (some policies). Equipment used underground (some policies). Items left in unlocked vehicles overnight.
The gap — what happens without it
Someone breaks into your job trailer over the weekend — steals $45K worth of power tools, a laser level, and a generator. Your commercial property policy says 'not at a covered premises.' Without inland marine, you're buying all new tools out of pocket on Monday morning.
What drives your premium
Total value of equipment, type of equipment, job site security measures, deductible chosen, whether items are scheduled individually or blanket
Endorsements to ask about
Rented/leased equipment coverage. Employee tools coverage. Installation floater (covers materials being installed until project completion).
Situational Coverage
Pollution Liability
Covers environmental contamination claims excluded by GL
What it covers
Environmental contamination claims that GL explicitly excludes. Covers cleanup costs, third-party bodily injury from pollution, legal defense, and regulatory fines. Applies to both sudden events (diesel spill) and gradual conditions (lead paint disturbance).
Common misconception
People think GL covers accidental spills. It doesn't — the absolute pollution exclusion in standard GL policies is exactly that: absolute. Even an 'accidental' fuel spill from your equipment that contaminates a neighbor's well is excluded.
What it does NOT cover
Known pre-existing contamination. Intentional discharge. Nuclear/radioactive materials. Asbestos (often requires separate coverage). Fines for willful violations.
The gap — what happens without it
Your excavator hits an unmarked underground fuel tank during a dig. 500 gallons of heating oil seep into the groundwater. The EPA orders a cleanup — $280K. The neighboring property owner sues for diminished property value — another $150K. Your GL policy's pollution exclusion means zero coverage. Without a pollution policy, this single event can end a small GC's business.
What drives your premium
Type of work (excavation and demolition are highest risk), proximity to water, fuel storage on site, history of environmental work, geographic area
Endorsements to ask about
Transportation pollution (covers spills during material transport). Completed operations pollution (covers contamination discovered after you leave). Mold coverage.
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.