General Contractor Liability Insurance: Perks, Cost, and Limitations

July 5, 2021

Undoubtedly, the construction industry is demanding, uncertain, and filled with endless possibilities. The professionals actually work at their level best to make something best right from scratch. But being a contractor, you should know that there are some unprecedented risks as well.

For instance, your client might get hurt or injured on the site. Furthermore, due to some flaws in the process, your building could be weak from the inside. You should be prepared for anything that can go wrong with your construction project.

According to the Bureau of Labor Statistics, around 150,000 construction sites face severe accident injuries every year.

To mitigate such risks, you need to opt for an adequate insurance plan to protect all the assets. Here’s how a contractor liability insurance plan can keep your project secured till the end.

  • Perks of having a policy

An adequate insurance policy helps in financially protecting your project. The policy financially covers your lawsuits or any damage to the building-in-making. This includes legal fees or monetary compensation to the injured people for whom you are held responsible. The best part of having construction project insurance is that you feel at ease throughout the process because you know your employees, assets, and building are fully secured. It also helps in compensating for the losses that took place because of your project.

For instance, suppose you left a sack of cement lying on your client’s home, and they end up tripping over it. In that case, having insurance might come in handy to financially compensate for the loss. All in all, having an insurance policy for the project is definitely your first and best line of defense against unforeseen accidents.

  • Cost of the policy

You should know that the cost of the policy varies from project to project. It depends upon the risk perceived and the type of building you are working with. Generally, contractors who perform specialized trades such as roofing are the ones who opt for higher insurance packages.

Although many insurers out there offer flexible, reliable, and, best of all, affordable policies you should try to look for ones that are efficient enough to cover potential losses and keep you secured financially.

  • Limitations

Every good thing has certain limitations, and contractor liability insurance is no exception to it. You should know that general liability does not cover every kind of claim. It would be best if you had different policies for different types of accidents.

For instance, fire damage and medical expenses of injured workers might not be covered by such policies. Damage to your business property might also not be covered by the general contractor liability insurance plan. As mentioned earlier, such claims require different packages.

Wrapping Up,

Regardless of the size or nature of your project, having an insurance policy will always be your best bet. You can always choose your policy and plans from a list of insurance options such as worker’s compensation, commercial auto compensation, and contractor’s pollution policy. You must always opt for the ones that adhere to your project and cover for you during any emergency.

So, once you take up a construction project, don’t forget to get it insured right away.


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I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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