General Liability Insurance for Contractors & Why It’s Important

No matter what kind of contractor you are, general liability insurance is essential to your financial protection. In fact, some clients may even require that their contractors have liability coverage!

Let’s talk about what general liability insurance is, what it covers, and why it’s so important for all contractors — whether carpenters, electricians, landscapers, plumbers, or painters — to have this crucial protection.

What General Liability Insurance Is

General liability (GL) insurance helps protect a business from third-party claims involving bodily injury and property damage.

Owning and operating a business is a major endeavor! Keeping a business running smoothly and successfully requires a significant investment of time and resources. Unfortunately, without the right protection, a business is left incredibly — and unnecessarily — vulnerable. Despite the effort put into maintaining the business, misfortune without proper protection could leave a business in financial ruin.

General liability coverage provides a sense of financial security for businesses, covering the unexpected and often expensive costs of third-party claims of damages.

What General Liability Insurance Covers

General liability insurance provides financial protection from third-party claims of damages such as bodily injury and/or property damage.

Some examples of the protection general liability insurance provides:

• If a customer falls and gets injured on the property of your business, your general liability policy can help cover some or possibly all of their medical costs.
• If a customer claims that, while doing landscaping work in their yard, you damaged their fence, your general liability policy may help with repair costs.

Why Contractors Need This Coverage

Due to the nature of their work, contractors face an abundance of potential risks.

General liability insurance protects contractors, like any business, from the financial impact of a third-party claim. No matter how skilled the contractor, accidents and the unexpected can happen.

For example, what if…

• While a carpenter remodels a client’s kitchen, a hammer falls, damaging the flooring?
• When a plumber takes a quick break from working on a client’s bathroom, the customer’s child trips over a pipe wrench and gets hurt?
• A painter accidentally spills turpentine on a customer’s carpet?

In just an instant, a contractor could be responsible for entirely unintentional damages.

With general liability insurance, though, a contractor is far less vulnerable — and may not be responsible for paying damages out of pocket.

How Contractors Can Find the Right Coverage for their Business

There’s a lot to consider when selecting coverage for your business. The best way to ensure you get the insurance that’s right for you? Chat with an independent insurance agent!

Independent agents work for you, their clients – not insurance companies. They’ll work with you to determine the best coverage options for your business and its unique needs.

Read more: 10 Reasons to Purchase Your Insurance from an Independent Insurance Agent

Ready to meet with an independent agent? Try our Find an Agent tool to find an independent insurance agent near you!

This blog was originally published on September 23, 2022. It was last updated on August 5, 2025.