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General liability for contractors: what clients are asking for

What GL typically covers on a jobsite, how certificates fit in, and how it differs from workers’ comp or professional liability.

Alex Rivera2 min read
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Educational only. PolicyPlain does not sell insurance and does not provide insurance, legal, or financial advice. Coverage rules and prices vary by state and insurer. Read our full disclaimer.

When a client asks for a certificate, they usually mean commercial general liability first. It’s the policy built for third-party injury and property-damage claims tied to your work—not for your crew’s wages after an injury.

What GL is built to address

In broad educational terms, CGL can help with:

  • Third-party bodily injury — e.g., a visitor trips over your extension cord
  • Third-party property damage — e.g., you accidentally damage a client’s finished floor
  • Certain advertising/personal injury offenses as defined in the form
  • Legal defense costs for covered claims (often inside or outside limits—check the form)

What GL usually does not replace

NeedTypical policy
Employee on-the-job injuryWorkers’ compensation
Damage to your tools/equipmentInland marine / tools floater
Professional design mistakesProfessional liability / E&O
Auto accidentsCommercial auto
Employee theft of client propertyCrime / fidelity (sometimes)

Completed operations: why contractors care

Many contractor claims arise after you leave the job—defective work allegations, resulting damage, etc. CGL forms treat “products-completed operations” carefully, and construction defects can be contentious. Read endorsements that modify residential work, condo projects, or wrap-ups.

Certificates of insurance (COI)

Upstream parties often require:

  • Minimum limits
  • Additional insured status
  • Primary and noncontributory wording
  • Waiver of subrogation

Never assume a COI grants coverage that the policy excludes. Ask your agent to match endorsements to contract requirements before you sign.

Cost drivers

  • Trade (roofing vs interior paint)
  • Revenue / payroll
  • Claims history
  • Subcontractor practices (are certs collected?)
  • Limits and deductibles

Cheap GL that excludes your actual operations is not a bargain.

Confirm requirements with contracts, state licensing rules, and a licensed commercial agent.

Frequently asked questions

Does GL cover my injured employee?+

Employee injuries are generally workers’ compensation territory, not CGL. GL focuses more on third-party bodily injury and property damage.

What limits do GCs usually require?+

Requirements vary. Many contracts ask for $1 million per occurrence / $2 million aggregate as a starting point—always read the contract.

Is a certificate of insurance the policy?+

No. A COI is evidence of insurance at a point in time. The policy wording controls coverage.

General liability for contractors: what clients are asking for | PolicyPlain