General Liability Insurance for Contractors (7 Key Protections)

Contractors face real-world risks every day—on job sites, in client homes, and even in their own workshops. One accident, one lawsuit, or one damaged property can cost thousands. That’s why general liability insurance for contractors remains one of the most essential coverages in construction, trades, and home services.

Whether you’re operating in Connecticut or any surrounding state where Insure Connecticut LLC is licensed, these protections matter. In this guide, you’ll see 7 real-world examples based on incidents that happened to contractors just like you — and how general liability helped protect their businesses.

What Does General Liability Insurance Cover for Contractors?

General liability insurance is designed to protect you from financial loss if you accidentally:

• Damage a customer’s property

• Injure someone

• Cause an accident on a job site

• Make a mistake that results in a claim

• Face a lawsuit from a customer or visitor

These policies also include critical protections like personal injury coverage, legal defense, and medical payments—even if you’re not at fault.

Below are the 7 key protections, explained with incident-based examples.

7 Key Protections General Liability Insurance Provides Contractors

1. Property Damage Liability

Example: A carpenter installing custom cabinets accidentally drops a cabinet box onto the client’s granite countertop, cracking it. The replacement costs $3,400.

How GLI protects you: Your policy pays for the damage, so you’re not eating the entire cost—or the angry Google review.

2. Bodily Injury to a Non-Employee

Example: A homeowner slips on a loose tile during a bathroom remodel. They require stitches and later file a claim for medical costs.

How GLI protects you: It covers medical bills, legal fees, and potential settlements.

3. Damage to a Customer’s Personal Property

Example: An HVAC contractor accidentally knocks over an expensive vase during a furnace swap. The homeowner wants the $900 item replaced immediately.

How GLI protects you: Covers damage to belongings you didn’t install or work on.

4. Products & Completed Operations

Example: A railing installed by a contractor comes loose months later, and a guest falls, suffering an injury.

How GLI protects you: Even after the job is done, it can cover claims arising from your workmanship.

5. Personal & Advertising Injury

Example: A competing contractor claims your website copy “defamed” them. They threaten legal action.

How GLI protects you: Covers libel, slander, and copyright-related claims.

6. Tenants’ Legal Liability

Example: A contractor renting workspace accidentally causes a fire that damages part of the building.

How GLI protects you: Covers damage to property you rent or use for business.

7. Medical Payments (Goodwill Coverage)

Example: A delivery person visiting your workshop trips over an extension cord and sprains an ankle.

How GLI protects you: Pays their medical expenses without needing a lawsuit — often preventing bigger claims.

Why Insurance Limits Matter More Than You Think

Many contractors buy the cheapest policy with the lowest limits. But lawsuits and settlements can skyrocket, especially in states like Connecticut, Massachusetts, New York, and New Jersey.

Here’s why higher limits matter:

• Medical bills can exceed $10,000+ for simple injuries

• Property damage (like kitchen counters, flooring, or siding) can reach $15,000–$25,000

• Completed operations claims can reach six figures

• Legal defense can cost $200–$500 per hour

Getting the right limits (not just the cheapest option) protects your business from unexpected financial disaster.

Contracting Trades That Need General Liability the Most

This policy is essential for:

• HVAC technicians

• Carpenters

• Electricians

• Plumbers

• Painters

• Landscapers

• General contractors

• Roofers

• Handymen

• Home remodelers

If customers can sue you, if you work on someone else’s property, or if you touch tools, you need GLI.

How Much Does General Liability Insurance Cost for Contractors?

Most contractors pay:

$65–$165 per month or $780–$2,000 per year

Your cost depends on:

• Trade type (roofers pay more than painters)

• Claims history

• Number of employees

• Annual revenue

• Tools & equipment

• Coverage limits

Get a Contractor General Liability Quote Today

Whether you're working in Connecticut or any surrounding state where we’re licensed, we help contractors get the right policy at the right price.

Insure Connecticut LLC

✔ Independent insurance broker

✔ Access to multiple carriers

✔ Fast quotes

✔ No-pressure guidance

To request a free General Liability Insurance quote, call us at (860) 970-0977

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FAQ

1. Do all contractors need General Liability Insurance?

Yes. If you work on client property, interact with the public, or could be sued, GLI is essential.

2. Does General Liability cover mistakes in my work?

It covers bodily injury or property damage caused by your work, but not the cost of repairing poor workmanship.

3. Is General Liability required in Connecticut?

It’s not legally required for all trades, but many clients, GCs, and municipalities require proof of insurance.

4. What’s the difference between General Liability and a BOP?

A BOP includes GLI, Commercial Property, and Business Interruption in one packaged policy.