General Liability & Builder’s Risk Insurance for Contractors: Essential Protection for Your Business

General Liability & Builder’s Risk Insurance for Contractors: Essential Protection for Your Business

Contractors and general contractors (GCs) face unique risks every day, from job site accidents to property damage. Two essential insurance policies that every contractor should have are General Liability Insurance (GL) and Builder’s Risk Insurance. These policies help protect your business, clients, and projects from costly claims and unexpected disasters. In this guide, we’ll break down how each type of coverage works, why they’re crucial, and how to ensure you have the right protection.

1. General Liability Insurance for Contractors

What is General Liability Insurance? General Liability (GL) Insurance provides protection against third-party claims of bodily injury, property damage, and advertising injuries. This is the foundation of any contractor’s insurance plan, as accidents and lawsuits can be financially devastating.

What Does General Liability Insurance Cover?

• Bodily Injury – If a client, vendor, or passerby is injured on your job site, GL insurance can cover medical costs and legal fees.
• Property Damage – Covers accidental damage to a client’s property caused by your work.
• Completed Operations – Protects against claims related to work you’ve completed in the past.
• Personal & Advertising Injury – Covers defamation, copyright infringement, and false advertising claims.

Why General Contractors Need GL Insurance

• Many clients require proof of GL insurance before awarding contracts.
• It provides financial protection from lawsuits, settlements, and judgments.
• Helps maintain a professional and credible business reputation.

2. Builder’s Risk Insurance: Protecting Your Projects

What is Builder’s Risk Insurance? Builder’s Risk Insurance is a specialized type of property insurance that covers buildings and structures under construction. It protects contractors and project owners from financial loss due to damage before a project is completed.

What Does Builder’s Risk Insurance Cover?

• Fire & Vandalism – Protects against damage caused by fire, theft, or vandalism during construction.
• Weather-Related Damage – Covers wind, hail, and lightning damage to an unfinished structure.
• Materials & Equipment – Protects construction materials stored on-site, in transit, or waiting to be installed.
• Soft Costs – Some policies can cover additional costs due to project delays, such as legal fees and permit expenses.

Why General Contractors Need Builder’s Risk Insurance

• Most project owners require contractors to carry this coverage.
• Helps mitigate financial losses due to delays or unforeseen damages.
• Ensures job site materials and structures are protected throughout the build.

3. Tips for Choosing the Right Insurance Policy

• Assess Your Project Needs – Consider the size, scope, and risks associated with your projects.
• Understand Policy Exclusions – Some builder’s risk policies may exclude earthquakes, floods, or employee theft, requiring additional coverage.
• Work with an Experienced Agent – Partnering with an insurance expert ensures you get customized protection that meets contract requirements.
• Bundle Coverage – Many insurers offer discounts when you bundle GL and Builder’s Risk Insurance with other business policies.

4. Get Comprehensive Coverage for Your Contracting Business

Running a successful contracting business means being prepared for unexpected events. With the right General Liability Insurance and Builder’s Risk Insurance, you can protect your company, your projects, and your financial stability.

At QB Insurance and Multi-Services, we specialize in providing customized insurance solutions for contractors and general contractors. Contact us today for a free quote and expert guidance on securing the best coverage for your business!