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Comprehensive General Liability Insurance for General Contractors
GET YOUR FREE QUOTE TODAYGeneral Liability Insurance by the Numbers
$109B
U.S. General Liability Market Value (2025)
16%
Average Annual Claims Cost Increase
$31,690
Average Bodily Injury Claim Value
$25,000+
Average Legal Defense Costs per Claim
*Statistics compiled from industry reports and market analysis data for 2024-2025
What is General Liability Insurance?
General Liability Insurance is the foundation of protection for construction businesses. It provides coverage when your business operations cause bodily injury to third parties or damage to someone else’s property.
For general contractors, this insurance covers incidents that occur during construction activities, from job site accidents to property damage claims. It is your first line of defense in our increasingly litigious business environment.
Bodily Injury Protection
Covers medical expenses, legal fees, and settlements when your business operations cause injury to third parties, including workers, visitors, or the general public.
Property Damage Coverage
Protects against claims for damage to customer property, neighboring buildings, or public infrastructure caused by your construction activities.
Legal Defense Costs
Covers attorney fees, court costs, and legal expenses – which can average $25,000+ per claim even when you are not at fault.
Why General Contractors Need This Coverage
Contract Requirements
Most project owners and clients require proof of General Liability insurance before awarding contracts. Without coverage, you could miss out on profitable projects.
High-Risk Industry
Construction sites are inherently dangerous. With heavy machinery and multiple trades working simultaneously, accidents are unfortunately common.
Rising Claim Costs
Liability claims have increased 16% annually over the past five years, with nuclear verdicts over $10 million growing by 27% in 2023 alone.
Asset Protection
Your business assets and future earnings are at risk without proper coverage. One major claim could bankrupt an uninsured contractor.
Legal Requirements
Many states require General Liability insurance for contractor licensing. California, for example, mandates this coverage for all general contractors.
Professional Credibility
Having proper insurance demonstrates professionalism and reliability to clients, helping you win more contracts and build trust.
Typical Coverage Limits for General Contractors
Coverage limits vary based on project requirements, but here are the most common configurations:
Industry Insight
91% of contractors choose $1M/$2M limits as their standard coverage. However, upgrading to $2M/$4M limits typically adds only about $15-20 per month but provides significantly better protection.
General Liability Fun Facts
First Employer’s Liability Law
Germany enacted the world’s first employer’s liability insurance law, paving the way for modern liability coverage.
Claims in Litigation
Only 20-25% of all general liability claims require litigation and defense attorneys – but these account for the highest costs.
Annual Insurance Fraud
Insurance fraud costs the industry $308.6 billion annually, adding $400-700 to the average family’s premiums.
U.S. Market Dominance
The United States accounts for over 50% of all global liability insurance premiums, making it the world’s largest market.
Umbrella Insurance Born
Umbrella insurance policies originated in the late 1940s and became popular in the 1960s as lawsuits became more common.
Nuclear Verdicts Rising
Nuclear verdicts over $10 million increased by 27% in 2023, with thermonuclear verdicts over $100 million up 35%.
Ready to Protect Your Business?
Get a customized General Liability insurance quote tailored to your construction business needs.
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