The policy that keeps you in business when a third party claims you damaged their property or hurt someone. Understand what's included — and what's not.
What it covers
General liability (GL) covers third-party claims of bodily injury, property damage, personal injury, and advertising injury. On a jobsite, that usually means a visitor tripping over cord, a window broken in a neighbor's house, or damage caused by faulty workmanship that leads to additional loss.
▸ Bodily injury to clients, pedestrians, or bystanders
▸ Property damage you or your crew cause to others
▸ Personal and advertising injury (libel, slander)
▸ Legal defense costs, even if the claim is bogus
▸ Medical payments for minor injuries at your work site
What's excluded
GL is not a catch-all. It does not cover your own employees' injuries, your tools or vehicles, professional mistakes, or intentional damage. Many policies also exclude certain types of work unless you buy endorsements.
Employee injuries
Covered by workers' compensation, not general liability.
Your vehicles
Needs a commercial auto policy.
Faulty work itself
GL covers resulting damage, not the cost to redo the work.
Professional errors
Design mistakes need professional liability coverage.
Limits and deductibles
Policies are written with per-occurrence limits and aggregate limits. A $1M/$2M policy pays up to $1 million per claim and $2 million total during the policy period. Higher limits are available through umbrella policies, which is often required for large commercial or public work.
▸ Per-occurrence limit = max per single claim
▸ Aggregate limit = max total for the policy term
▸ Umbrella coverage stacks on top of underlying GL
Run through these basics before you sign a contract or let a crew step on a jobsite. Every box you miss is a gap an owner or GC can use to deny payment or pass liability back to you.
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How to read a certificate
A certificate of insurance (COI) is proof of coverage, but it is not the policy itself. Verify the named insured, policy dates, coverage types, limits, and any additional insured or waiver of subrogation endorsements.
Named insured
Must match the contractor you hired exactly.
Policy dates
Make sure coverage is in force for your entire project.
Additional insured
Common GC requirement; adds you to their defense.
Waiver of subrogation
Prevents the insurer from coming after you for a claim.
General Liability Insurance Carriers
We did the hard part for you. This is who most contractors use based on the CSLB website. Click through to each carrier to verify current appetite, limits, and appointed agents in your area.
