Do I need to cover my subcontractors under my GL?

Your GL covers operations you perform directly and can cover subcontracted work under certain conditions, but this should not be your primary strategy. The correct approach: (1) Require current GL certificates from every sub naming you as additional insured. (2) Require WC certificates from every sub. (3) Verify that subs are properly classified for the work they're performing. Your GL is the backstop if a sub's insurance fails — not the primary coverage for their work.

What is builders risk and who buys it?

Builders risk (also called course of construction insurance) covers the building being constructed against damage during the construction period — fire, theft, vandalism, storm damage, collapse, and other perils. The contract typically specifies who purchases it: often the GC on residential projects; sometimes the property owner on commercial projects. The policy runs from groundbreaking to substantial completion. Once the Certificate of Occupancy is issued, the owner's property insurance takes over. Verify your contract clearly assigns builders risk responsibility before bidding.

What happens if a subcontractor's employee gets hurt on my site?

If the injured sub's employee is covered by the sub's WC policy, that policy is the primary response. However, if the sub has no WC, allowed their WC to lapse, or if there's a dispute about employment status, you as the GC can be held liable — especially in states where the GC is deemed the employer of uninsured subs. This is why requiring and verifying WC certificates from all subs before work begins is critical. Your GL can also be implicated if the injury was partly due to site conditions you controlled.

How does GC insurance change as I grow?

GL premiums are based on annual gross revenues (or sometimes payroll) — as revenue grows, premiums grow proportionally. WC premiums are based on payroll by job classification. As you hire employees and take on larger projects, your insurance stack evolves: add builders risk (per-project or blanket), increase GL limits, add umbrella, and potentially add contractor's professional liability if you're offering design-build services. Review your coverage annually with your broker as revenue grows to ensure limits keep pace with project scale.

Do I need to cover my subcontractors under my GL?

Your GL covers operations you perform directly and can cover subcontracted work under certain conditions, but this should not be your primary strategy. The correct approach: (1) Require current GL certificates from every sub naming you as additional insured. (2) Require WC certificates from every sub. (3) Verify that subs are properly classified for the work they're performing. Your GL is the backstop if a sub's insurance fails — not the primary coverage for their work.

What is builders risk and who buys it?

Builders risk (also called course of construction insurance) covers the building being constructed against damage during the construction period — fire, theft, vandalism, storm damage, collapse, and other perils. The contract typically specifies who purchases it: often the GC on residential projects; sometimes the property owner on commercial projects. The policy runs from groundbreaking to substantial completion. Once the Certificate of Occupancy is issued, the owner's property insurance takes over. Verify your contract clearly assigns builders risk responsibility before bidding.

What happens if a subcontractor's employee gets hurt on my site?

If the injured sub's employee is covered by the sub's WC policy, that policy is the primary response. However, if the sub has no WC, allowed their WC to lapse, or if there's a dispute about employment status, you as the GC can be held liable — especially in states where the GC is deemed the employer of uninsured subs. This is why requiring and verifying WC certificates from all subs before work begins is critical. Your GL can also be implicated if the injury was partly due to site conditions you controlled.

How does GC insurance change as I grow?

GL premiums are based on annual gross revenues (or sometimes payroll) — as revenue grows, premiums grow proportionally. WC premiums are based on payroll by job classification. As you hire employees and take on larger projects, your insurance stack evolves: add builders risk (per-project or blanket), increase GL limits, add umbrella, and potentially add contractor's professional liability if you're offering design-build services. Review your coverage annually with your broker as revenue grows to ensure limits keep pace with project scale.

Trades & Construction

Business Insurance for General Contractors

As a GC, you're on the hook for every subcontractor's mistake, every site injury, and every completed-operations defect. Here's the comprehensive insurance stack that covers all of it.

$200–$800/ monthSmall residential GC (solo): $200–$400/month for GL + auto. Mid-size GC (5–10 employees): $600–$1,500/month including WC, GL, auto, umbrella. Large commercial GC: $2,000–$10,000+/month depending on project volume and WC payroll.

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Coverage Types for General Contractors

These are the key insurance policies most relevant to your business type — ranked by importance.

🛡️

General Liability

Required

The foundation of GC coverage — covers third-party bodily injury, property damage, and completed operations. As a GC, your GL must name you for the full scope of construction work including work performed by subcontractors on your behalf. Limits of $1M/$2M are standard; large commercial projects typically require $2M/$4M or higher.

🦺

Workers' Compensation

Required

Required in virtually every state where you have employees. As a GC, your WC exposure extends to the entire project — if a subcontractor's employee is injured on your site and the sub has no WC, you can be held liable as the employer of record. Require WC certificates from all subs before they begin work.

🏗️

Builders Risk

Highly Recommended

Covers the building under construction against fire, theft, vandalism, storm damage, and collapse during the build period. Builders risk is typically purchased per-project and is often required by the property owner or lender. As GC, you're usually responsible for purchasing it unless the contract specifies otherwise.

🚐

Commercial Auto

Required

Covers all company-owned vehicles used for project management, site supervision, and material transport. GC contracts often require commercial auto with minimum $1M combined single limit. Hired and non-owned auto coverage is important for vehicles rented or borrowed for business use.

☂️

Umbrella / Excess Liability

Highly Recommended

Large construction projects can generate multi-million dollar claims — structural failures, multi-party injuries, or major property damage. An umbrella adds $1M–$10M+ above your GL limit at cost-effective rates. Most commercial GC contracts require $5M+ total liability coverage (GL + umbrella combined).

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What You Need to Know

→You're responsible for your subcontractors on your jobsite — require current GL and WC certificates from every sub before they start work, and require additional insured status on their GL.
→Builders risk is project-specific — you typically need a new policy for each project or a blanket builders risk policy if you run multiple simultaneous projects.
→Your GL rate is based on gross revenues — as your business grows and revenue increases, your GL premium increases proportionally. Budget for this as you scale.
→Contractual liability is a GC's biggest exposure — indemnification clauses in owner contracts shift liability to you. Your GL must include a contractual liability endorsement to cover indemnification obligations.
→License bonds are separate from insurance — most states require GC license bonds ($10K–$100K depending on state) in addition to GL insurance. Both are required for licensure.

What Does It Cost?

$200–$800per month

Small residential GC (solo): $200–$400/month for GL + auto. Mid-size GC (5–10 employees): $600–$1,500/month including WC, GL, auto, umbrella. Large commercial GC: $2,000–$10,000+/month depending on project volume and WC payroll.

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Frequently Asked Questions

Residential GCs typically carry $1M per occurrence / $2M aggregate GL. Commercial GCs typically carry $2M/$4M or higher. Large commercial and public projects commonly require $5M+ total liability, achieved through a $2M GL policy plus a $3M+ umbrella. The project owner's contract will specify minimum limits — match those at minimum, and carry higher if your project values or risk profile warrant it. If you're bidding government or municipal work, $5M–$10M umbrella requirements are not unusual.

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