What is General Liability Insurance (GLI) for contractors?

General liability insurance (GLI) is a key coverage that helps protect contractors and construction businesses from costly claims that your company caused bodily injury or property damage to a third-party. It covers claims related to bodily injury, property damage, personal injury, and advertising injury, such as libel or slander.

General Liability Insurance for Contractors

Q: What other types of liability insurance do contractors need?

In addition to general liability insurance, contractors may want to consider other types of small business insurance to have well-rounded coverage. Some types of coverage include commercial property insurance, business income insurance, data breach insurance, and workers’ compensation insurance.

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Key Takeaways

General liability insurance (GLI) can help cover claims that your contracting business may have caused bodily injury to someone, property damage to a person’s belongings, and personal or advertising injuries, like libel or slander.
Many types of construction-related contractors may need this coverage, like carpenters, plumbers, handymen, electricians and masons.
On average, construction businesses pay about $1,395 a year, or $689 a month, for general liability insurance.**

General Liability Insurance for Contractors and Construction

General liability insurance for contractors and construction businesses helps protect your business from claims that it caused bodily injuries or damage to someone else’s property. Without general liability insurance, or business liability insurance, business owners would have to pay out of pocket for certain liability claims.

We know that contractors face unique risks. Whether you’re meeting with clients in a store or working on a client’s home, liability insurance for contractors can help you.

What Does General Liability Insurance Cover for Contractors?

General liability insurance from The Hartford can help cover the costs related to claims of:

Bodily injury
Property damage
Personal injury, like libel or slander

Different types of general liability claims can come up during normal operations. Even if you try to run your contracting business perfectly, mistakes can happen.

business owner protected by liability insurance for contractors

Who Needs Construction Insurance?

A general liability insurance policy can help protect different types of construction businesses. Our general liability insurance helps cover:

Contractors
Carpenters
Plumbers
Handymen
Electrical contractors
Masons
Security companies
Homebuilders
Developers
Home renovation
Independent contractors

General Liability Insurance Cost for Contractors

On average, construction businesses pay around $1,395 annually for general liability insurance.** Keep in mind that general liability insurance costs vary. That’s because every business is unique. Insurance companies look at different factors when determining general liability insurance costs. This can include:

The type of business you own. Contracting businesses may face more risk compared to other businesses, so your rate may be higher.
Your experience. How long you’ve been in business can affect your general liability insurance cost.
Your number of employees. The more workers you have, the higher the risk level.
Your location. Areas with higher crime rates can cause your costs to increase.
Policy details, like coverage limits and deductibles. More coverage and a lower deductible can increase rates.
Your claims history. Clean histories can result in lower costs.

The best way to find out your coverage cost is to get a general liability insurance quote with our partner Tivly, who can help you find the right coverage.

Frequently Asked Questions About Contractor Liability Insurance

Why Should Contractors Want Good General Liability Insurance?

Mistakes and the unexpected can happen at any time. That’s why it’s important to partner with an insurance company you can trust. We have over 200 years of experience and have insured many construction businesses and projects, like the Hoover Dam and Golden Gate Bridge. Whether you have questions on coverage or need help with a claim, we’ve got your back.

How Much Does a $1,000,000 Liability Insurance Policy Cost?

On average, a $1 million liability insurance policy costs about $69 a month, or $825 a year, for small business owners.** However, liability insurance costs often vary across businesses. It’s important to note that one million dollars in liability coverage isn’t always exactly what every type of business needs. You may need more or less coverage than that depending on your specific business.

What Other Types of Liability Insurance Do Contractors Need?

A general liability insurance policy is just one part of contractor insurance. You’ll likely want to consider getting other types of small business insurance to have well-rounded coverage. Some types of coverage you can get include:

Commercial property insurance to help protect the owned or rented building and equipment you use to operate. This includes your:

Computers
Tablets
Tools
Power equipment
Heavy equipment

Business income insurance to help cover lost income if you can’t operate because of covered property damage.

Data breach insurance to help you respond to a breach if personally identifiable information gets lost or stolen. Some insurers call this coverage cyber insurance.

Workers’ compensation insurance helps your employees if they have a work-related injury or illness. Also known as workers’ comp, this coverage can help pay for an employee’s medical expenses. It gives them benefits to help recover and return to work.

Get General Liability Insurance for Construction

Have questions about general liability insurance for construction businesses? We're here to help. Our specialists can tell you about the types of business insurance coverage that we offer. If you have questions about getting a certificate of insurance, adding an additional insured or need help with a claim, we’ve got your back. Get a general liability insurance quote today through our partner, Tivly.

Independent Contractor Liability Insurance

General Liability Insurance Cost

General Liability Insurance Definition

** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.

This page outlines in general terms the coverages that may be afforded under a policy from The Hartford. All policies must be examined carefully to determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specifically affect coverage. In the event of a conflict, the terms and conditions of the policy prevail.

All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. In Arizona, California, New Hampshire, Texas, and Washington by Hartford Fire Insurance Company, Hartford Casualty Insurance Company, Hartford Accident & Indemnity Company, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Pacific Insurance Company, Limited, Sentinel Insurance Company, LTD (CA license #8701), Hartford Lloyd's Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Trumbull Insurance Company, Hartford Insurance Company of the Southeast, and Property & Casualty Insurance Company of Hartford and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.

Additional disclosures below.

The Hartford does not currently have a product available to provide the coverage described on this page. You are being referred to Tivly in an effort to connect you with a carrier who may provide this coverage. This link will redirect you to a third-party website, owned and operated by an independent party ("Tivly"). Any link you make to or from the Tivly website will be at your own risk. Any use of the Tivly website will be subject to and any information you provide will be governed by the terms of the Tivly website, including those relating to confidentiality, data privacy and security. The Hartford and its affiliates (collectively "The Hartford") do not endorse or approve and make no warranties, representations or undertakings relating to the content of the Tivly website. The Hartford assumes no liability for loss, damage and any other consequence resulting directly or indirectly from your access to the Tivly website or any information that you may provide on the Tivly website.