Understand your coverage options, what each policy protects, and how much you should expect to pay. Stay compliant and protected.
What it covers: Property damage, bodily injury, and legal fees if someone gets hurt or property is damaged due to your work.
If a customer or bystander is injured on your job site
Damage to someone else's property caused by your work
Pays for a lawyer if you're sued
Covers issues that arise after you finish the job
Why you need it: Most GCs require this before you step on a job site. It's non-negotiable.
What it covers: Medical bills, lost wages, and disability for employees injured on the job.
Doctor visits, surgery, physical therapy
Typically 66% of their regular pay while injured
Permanent disability payments if unable to return to work
Payments to family if injury is fatal
Why you need it: Required by law in all 50 states if you have employees. Non-compliance means serious fines.
What it covers: Accidents involving work vehicles — company vehicles, not personal cars used for work.
If you cause an accident, covers damage to other vehicles/property
Damage to your work vehicles in accidents
For passengers injured in an accident
Protects you if hit by an uninsured driver
Why you need it: If you use company trucks or vans for work, this is essential. Personal auto insurance won't cover work use.
What it covers: Extra liability protection on top of your GL and auto policies — covers claims that exceed your base policy limits.
Usually $1M - $5M in additional coverage
Protects your personal assets if you're sued for large amounts
Major GCs often require minimum $1M-$2M umbrella coverage
Why you need it: One major lawsuit can exceed your base GL limits. Umbrella insurance is affordable protection for big jobs.
What it covers: Claims that your work was faulty, defective, or didn't meet contract specs — mainly for specialized or design work.
If a design or plan you provided causes problems
Covers defense costs if accused of poor quality work
Legal fees if a client claims breach of contract
Who needs it: HVAC designers, electricians doing complex estimates, masons, concrete finishers — any trade where specs and quality are critical.
Track renewal dates and compliance requirements
Make sure you have the right insurance for your business: