General Liability Insurance for Contractors is a necessity on a construction project.  Most clients will ask you to provide proof of it before you begin. However, what exactly is general liability, and why do you need it?



General Liability Insurance for Contractors

This covers your business when a client or third party claims your actions (or those of your employees) have caused them damage.  Consequently, the types of damage typically included in General Liability are:

  • Bodily injury. This is physical injury caused to a person. This is a result of something you or an employee did, or failed to do.

Scenario: An employee is unloading materials from a flatbed truck. He doesn’t see properly. He does not see a visitor to the site crossing his path. Furthermore, he accidentally knocks the visitor over, breaking his leg.


  • Property damage. This is damage caused to the property of another.

Scenario: While installing a new kitchen for a homeowner, the kitchen is accidentally flooded as the water is not turned off properly. The water leaks down into the basement causing extensive damage.


  • Personal injury. This is damage caused to a person’s reputation and well being. This could be due to libel, slander, malicious prosecution, wrongful arrest, and violation of privacy.

Scenario: In discussion with your client you bad mouth a competitor.  Consequently, your client cancels their contract with them.  For this reason, the competitor sues you for the damage to their reputation. They sue for the financial loss they have suffered as a consequence.


  • Advertising/Marketing damages.  This is damage that your advertising or marketing causes your client or a third party.

Scenario: You create a brochure displaying some of the work you have done.  In the brochure, you include the brand name of a fixture you have installed. However, you don’t have written permission to use that brand symbol.



How does General Liability Insurance for Contractors assist?

Liability insurance will assist you with the cost of your legal defense if sued for negligence.  It will also assist with your settlement costs.  Litigation is becoming more common in construction.  The courts in recent times have awarded very large settlements. Hence, without liability insurance it is unlikely your business would survive.


At Farmer Brown Insurance our liability insurance includes coverage for compensatory damage, punitive damages and general damages.



Tailor your insurance for your business needs

Your business is unique. Your insurance should reflect this. At Farmer Brown Insurance we can assist you with all the coverage your business needs.  Moreover, we also provide specialized solutions that meet the specific needs of different types of contractors. This includes Electrical, Roofing, Painting and Plumbing.



Good news about General Liability Insurance for Contractors

At Farmer Brown Insurance you can get an online quote for your insurance within minutes. Our licensed agents are experts. Thus, they can answer all your questions.  Let us tailor a solution for you. Call Farmer Brown Insurance on (888) 973-0016 for affordable options that protect your business.


Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.