Landlords
Contractors
Insurance for General Contractors
Aaron Ameduri
Last reviewed: September 29, 2026
General contractor insurance is usually built from four pieces: general liability for injury and property damage on a job site, workers' compensation for your crew, commercial auto for vehicles used for work, and tools or equipment coverage for what you can't work without. Larger jobs often add a commercial umbrella on top of all four.
The core policies almost every contractor needs
- General liability. Injuries to others and damage to property that isn't your own work, plus the legal costs that come with a claim.
- Workers' compensation. Required in most states once you have employees, covering injuries to your own crew regardless of fault.
- Commercial auto. Vehicles titled to the business or regularly used for work, which a personal auto policy typically excludes.
- Tools and equipment. General liability doesn't cover your own tools if they're stolen or damaged, that's a separate first-party coverage.
What gets added as jobs get bigger
A commercial umbrella extends liability once a claim runs past your general liability or auto limits, and larger commercial or municipal contracts often require one by contract. Builder's risk insurance covers the structure itself while it's under construction or renovation, which is different from general liability and easy to assume is covered when it isn't. A contractor who also designs or specifies work, not just builds it, may need professional liability or errors and omissions coverage on top of the standard package.
Certificates of insurance and why they matter
A certificate of insurance is proof of active coverage, and property owners or general contractors above you in a project will usually require one before you start work, often with a requirement that they be named as additional insured. Keeping current certificates on file, both the ones you provide and the ones you collect from your own subs, is what actually protects you when a claim happens rather than after.
Where new contractors get it wrong
Assuming general liability covers stolen tools, it doesn't. Paying a crew as 1099 without confirming they carry their own workers' comp, which can leave that exposure sitting on your own policy. Skipping builder's risk on a renovation because the general liability policy is already in place, when it isn't the same coverage. And confusing a surety bond with insurance: a bond guarantees a project gets finished or a client gets compensated if you don't perform, it doesn't protect against injury or property damage the way a liability policy does. They're separate products that often get bundled together in a bid package but serve different purposes.
Common questions
What's the difference between general liability and workers' compensation for a contractor? General liability covers injury or damage you cause to others. Workers' compensation covers your own employees' injuries, regardless of fault, and is required in most states once you have a crew.
Do I need builder's risk insurance separate from general liability? Yes. Builder's risk covers the structure itself while it's under construction. General liability doesn't cover damage to the project you're actively building.
What is a certificate of insurance and why do I keep getting asked for one? It's proof that your coverage is active, and property owners or the general contractor above you on a job typically require one, often with additional insured status, before you're allowed to start work.
Is a surety bond the same as insurance? No. A bond guarantees the job gets done or the client is compensated if you don't perform. It doesn't cover injury or property damage the way a liability policy does, even though the two are often requested together.
Send me the size and type of jobs you're taking on, and I'll tell you what your coverage actually needs to look like.
— Aaron