General contractors carry responsibility for the whole project: their own crews, subcontractors, the site, and the finished work. That is why owners and lenders look closely at a GC’s insurance before awarding a job.
Core coverage
Most general contractors build their program around:
- General liability, including products and completed operations.
- Workers’ compensation and employer’s liability.
- Commercial auto for trucks and work vehicles.
- Umbrella or excess liability for higher limits.
- Inland marine or contractor’s equipment coverage for tools and machinery.
- Builder’s risk for projects under construction, when the contract assigns it to you.
- Surety bonds for bid, performance, and payment obligations on many public and larger private jobs.
Contract requirements
Construction contracts often require additional insured status for the owner and others, waivers of subrogation, primary and non-contributory wording, and specific limits. Read the insurance section of each contract and confirm your policies can meet it before you sign.
Managing subcontractor risk
Uninsured or underinsured subcontractors can shift claims and audit charges back to you. Require certificates before work begins, confirm the subcontractor names you as additional insured where your contract requires it, and track expiration dates.
Professional exposure
Design-build work or construction management services can create professional liability exposure that general liability may not address. Consider contractor’s professional liability if you provide design or advisory services.
Common questions
- Is builder’s risk the GC’s responsibility?
- It depends on the contract. Sometimes the owner buys it, sometimes the contractor. Check who is assigned that responsibility.
- Do I need bonds?
- Many public projects and some private projects require bid, performance, or payment bonds. Bonding capacity depends on your financials and experience.
Related
Coverage availability, terms, conditions, exclusions, and pricing vary by insurer and underwriting. This information is general and is not a representation of coverage under any specific policy. This article is educational and is not legal, tax, or risk-management advice.