Construction Insurance for General Contractors and Trade Contractors

Construction insurance isn’t a single policy. It’s a package of coverages built around the specific risks of building work: third-party liability, employee injuries, property damage, and completed work claims. The right combination depends on your trade, your contract requirements, and the size of the projects you take on.

Three Claims, Three Different Exposures

A subcontractor damages a client’s finished floor on the last day of a renovation. An electrician falls from a ladder and breaks his arm on site. A general contractor completes a commercial fit-out and six months later the client claims the work caused water damage to the floor below.

Three claims. Three different exposures. All of them routine in construction.

No single policy covers all of it. That’s why construction insurance is built as a stack — each coverage answering a different exposure on the jobsite, in transit, and after handover.

$1M / $2M

common GL limits contracts and licensing authorities require

100+

carrier portals we submit across, including E&S markets

50 states

where we place construction coverage for contractors and trades

Not sure which coverages your contracts require? Talk to our team and we’ll help you scope the package.

Coverage Stack

What Does Construction Insurance Cover?

No single policy covers every construction risk. A complete package typically combines several coverages working together, each answering a different exposure on and off the jobsite.

General Liability

Foundation

What it pays for

Third-party bodily injury and property damage arising from your operations or completed work, including post-project claims

Common example

A visitor trips over equipment on your jobsite, or completed work causes damage after handover

Workers Compensation

Required

What it pays for

Medical expenses, lost wages, and rehabilitation costs when an employee is injured on the job

Common example

Legally required in every state except Texas for employers with staff

Commercial Auto

Vehicles

What it pays for

Liability and physical damage for business-owned vehicles, plus hired and non-owned auto for employee vehicles used for work

Common example

A work truck causes an accident on the way to a jobsite

Commercial Property

Premises

What it pays for

Your yard, office, or storage facility and its contents, including tools kept at a fixed location

Common example

A fire at your storage yard damages the building and stored materials

Tools & Equipment

Day-to-day

What it pays for

Inland marine coverage for tools and equipment on a jobsite, in transit, or in a vehicle

Common example

Tools stolen from a locked van overnight — the coverage most trades need most

General Liability and Workers Comp: The Foundation

Two coverages sit at the center of almost every construction package — and they're the two contractors ask about most.

General liability is what responds when your operations or completed work cause third-party bodily injury or property damage, including the products-completed operations provision that covers claims surfacing months after a project wraps. The III explains how commercial general liability works in full. Most contracts and licensing authorities require GL with minimum limits of $1M per occurrence and $2M aggregate, and higher-risk trades and larger projects typically require more.

Workers compensation is non-negotiable for any contractor with employees — legally required in every state except Texas. Construction has one of the highest injury rates of any sector; OSHA's construction safety resources detail the leading causes, from falls to equipment accidents to struck-by incidents. Without it, an injured employee can sue your business directly.

What Construction Insurance Does Not Cover

Several construction exposures fall outside a standard contractor package. Each one needs its own coverage.

Professional design errors (architecture, engineering)

What you need instead

Professional liability / E&O

Employee injuries on the job

What you need instead

Workers compensation

Damage to the structure being built

What you need instead

Builder’s risk insurance

Business vehicles in an accident

What you need instead

Commercial auto policy

Cyber incidents or data breaches

What you need instead

Cyber liability policy

Lost income from a covered property loss

What you need instead

Business interruption coverage

Fine Print

Key Exclusions to Know

Four exclusions account for most of the surprises contractors hit at claim time.

01

Your own work

GL covers damage your work causes to other property, not the work itself. If a completed section of a project fails, the cost of redoing that work is typically excluded — a standard “your work” exclusion across GL forms.

02

Builder’s risk

The structure under construction is not covered by GL. Builder’s risk covers the building itself during construction for fire, theft, vandalism, and weather. On most projects, either the owner or the GC is required to carry it.

03

Professional liability

If your business provides design, consulting, or engineering services and an error in that work causes a claim, GL won’t respond. Professional liability covers that gap.

04

Subcontractor injuries

If a subcontractor on your site isn’t carrying their own workers comp, some states may treat their labor as your liability. Always require certificates of insurance from subs.

A subcontractor without their own coverage can become your liability — always collect certificates, and confirm subs carry their own workers compensation before they start work.

Who It Is For

Who Needs Construction Insurance?

Any business that performs physical construction, renovation, or trade work needs a construction insurance package.

01

General contractors

Coordinating trades and managing jobsites creates broad third-party liability exposure. GCs are also typically required to carry higher limits to satisfy project contracts and bonding requirements.

02

Specialty trade contractors

Electricians, plumbers, HVAC, roofers, and other trades face both GL and workers comp requirements. Trade classifications significantly affect premium — roofers and structural trades typically pay more than finish trades.

03

Subcontractors

Most GC contracts require subs to carry their own GL and workers comp and name the GC as an additional insured. Without your own coverage, you may be excluded from contracts.

04

Residential remodelers

Homeowner projects create the same third-party liability as commercial work. Property damage claims from renovation work are among the most common construction liability claims.

05

Handymen and independent tradespeople

Even solo operators with no employees need GL. A single property damage claim can exceed the cost of years of premiums.

For the full insurance picture for construction businesses, see our construction and contractors industry page.

Cost

How Much Does Construction Insurance Cost?

Cost varies significantly by trade, revenue, payroll, and location. GL alone averages around $142 per month for general contractors, but roofers pay considerably more than painters for equivalent limits.

01

Trade classification

How it affects premium

High-risk trades (roofing, structural, demolition) pay significantly more than finish trades

02

Annual revenue and project size

How it affects premium

Higher revenue and larger projects increase GL premium

03

Payroll

How it affects premium

Workers comp is calculated per $100 of payroll by class code

04

Number of employees

How it affects premium

More staff means higher workers comp and GL exposure

05

Claims history

How it affects premium

Prior claims have a direct and lasting impact on renewal pricing

06

Subcontractor usage

How it affects premium

Uninsured subs can increase your exposure and premium

07

State

How it affects premium

Workers comp rates and GL pricing vary significantly by state

08

Limits and deductibles

How it affects premium

Higher limits increase premium; higher deductibles reduce it

For context: GL alone averages around $142 per month for general contractors — about $1,700 a year — while a full package including workers comp and commercial auto typically runs $3,000 to $10,000 a year for a small-to-mid-sized operation. The only accurate figure is a quote for your trade and payroll.

How Construction Insurance Works at Rosella

Construction is one of the most complex lines to place well. Carrier appetite varies by trade, class code, and loss history — a GC with a prior GL claim or a roofing contractor with high payroll can find standard markets unwilling to quote.

Service: Certificates of insurance are delivered in under two minutes, any time of day. Claims go to a real person who knows your file.

01

We structure coverage to meet your contracts

Primary and non-contributory endorsements, additional insured status for an owner, and the limits your project and bonding requirements demand — set up before the project starts.

02

We review the policy wording before you bind

Our team checks for subcontractor exclusions, completed operations scope, and any contract-specific endorsements your projects require.

03

We submit across 100+ carrier portals

Including E&S markets for higher-hazard trades and accounts with claims history, so even hard-to-place risks get realistic pricing.

A GC needing primary and non-contributory endorsements plus additional insured status for an owner; a roofing contractor declined by standard markets after a fall claim — we structure the GL to meet the contract, or find E&S carriers with realistic pricing for that trade and loss history.

Frequently Asked Questions

Get a quote

Tell us about your trade, your payroll, and the projects you take on, and we’ll come back with real carrier options built for construction.

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Build the Right Coverage for Your Jobsites

Whether you’re a solo tradesperson or a general contractor managing multiple crews, we place construction coverage that matches your trade, your contracts, and your loss history.

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