Protect Your Business from Lawsuits
General liability insurance protects your contracting or service business from customer injuries, property damage claims, and advertising lawsuits. Required by general contractors, commercial leases, and most contracts in Alabama, Georgia, and Tennessee. Covers legal defense costs even if you win.
⚡ Instant online quotes from Next Insurance
What does general liability insurance cover for contractors?
General liability (GL) insurance covers three main risks contractors face: (1) bodily injury to property owners, customers, or visitors at your job site (customer slips on tools, homeowner injured by falling debris), (2) property damage you cause to client property (accidentally break a window, damage flooring, crack a foundation), and (3) advertising injury like copyright or slander. It pays for legal defense, medical bills, property repairs, and settlements—even if you're not at fault. Contractors typically pay $500-$3,000/year for $1-2 million in coverage depending on trade. Required by general contractors for COI, commercial property owners, and most contracts in AL/GA/TN. Does NOT cover employee injuries (need workers comp), professional design errors (need E&O), or your own tools/equipment (need inland marine).
What General Liability Covers
Customer slips and falls at your store, visitor injured at job site, client hurt by your product
Covers:
- • Medical bills
- • Legal defense costs
- • Settlements and judgments
- • Lost wages
Damage to client's property, landlord's building, or third-party equipment during your work
Covers:
- • Repair or replacement costs
- • Legal defense
- • Loss of use damages
- • Cleanup costs
Copyright infringement, slander, libel, or violation of privacy rights in your advertising
Covers:
- • Copyright violations
- • Trademark infringement
- • Defamation claims
- • Privacy violations
Real Contractor Liability Claims
Electrician damages client's $50K home theater system
Equipment replacement, installation costs, legal defense. Client sued for full replacement value.
$65,000
Total cost
Plumber's water leak damages hardwood floors and furniture
Floor replacement, furniture damage, hotel costs while repairs made, mold remediation.
$42,000
Total cost
Roofer's debris falls and injures homeowner
Medical bills, lost wages, pain and suffering. Homeowner broke collarbone and sued.
$125,000
Total cost
HVAC contractor accidentally breaks expensive window
Custom window replacement, interior damage from weather exposure, legal costs.
$18,000
Total cost
Landscaper's mower throws rock through car windshield
Windshield replacement, paint damage, rental car, legal defense.
$8,500
Total cost
Painter accused of damaging client's antique furniture
Legal defense costs to prove not at fault. Claim eventually dismissed but still paid defense.
$35,000
Total cost
Without general liability insurance, these businesses would have paid these costs out of pocket—potentially bankrupting the company. With insurance, they paid only their deductible (typically $500-$2,500).
Who Needs General Liability Insurance?
If you work at client locations, interact with customers, or lease commercial space—you need general liability insurance. Contractors and trades especially need it for COI requirements.
General Contractors & Builders
Required to provide COI to property owners and pull permits
Electricians, Plumbers, HVAC
High risk of property damage to client homes and businesses
Roofers, Framers, Concrete
Work at height with debris fall risk and property damage exposure
Painters, Drywall, Flooring
Work inside client properties with damage risk to finishes and furnishings
Landscapers & Tree Services
Equipment can damage property, debris can injure people
Remodelers & Handyman Services
Multiple trades with high property damage and injury exposure
Service Businesses
Cleaners, pest control, appliance repair working at customer locations
Retail & Restaurants
Customers visit your location—slip and fall risk is high
Progressive Platinum Agent
Exclusive access to Progressive's Commercial Contractor Policy
As a Progressive Platinum Agent, we offer exclusive access to Progressive's Commercial Contractor Policy—a specialized package designed specifically for contractors that includes general liability with built-in equipment coverage.
Progressive Commercial Contractor Policy Includes:
- General Liability with contractor-specific coverage enhancements
- Equipment Coverage (Inland Marine) built into the policy
- Competitive pricing with multi-policy discounts when bundled with Workers Comp
- Fast claims processing through Progressive's contractor-focused team
Not all agents have access to Progressive's Commercial Contractor Policy. As a Platinum Agent, we can bundle this with Workers Comp from top carriers to create a complete, cost-effective contractor insurance package.
View Contractor Bundle PackageWhat General Liability Does NOT Cover
General liability is essential but limited. These common risks require separate insurance policies.
Need: Workers Compensation Insurance
Need: Errors & Omissions (E&O) Insurance
Need: Commercial Property Insurance
Need: Commercial Auto Insurance
Need: Cyber Liability Insurance
Need: Employment Practices Liability Insurance (EPLI)
Need: No insurance covers intentional harm
Need: Pollution Liability Insurance
Understanding Coverage Limits
Standard Coverage Structure
$1,000,000 Per Occurrence
Maximum the policy pays for a single incident (one customer injury, one property damage claim)
$2,000,000 General Aggregate
Maximum the policy pays for all claims during the policy year
$100,000 Damage to Rented Premises
Covers damage to buildings you lease (fire, explosion, smoke damage)
$5,000 Medical Payments
Pays minor medical bills without lawsuit (goodwill coverage)
- • Contract requires $2M or higher
- • High customer traffic (retail, restaurants)
- • High-risk operations (roofing, tree removal)
- • Significant assets to protect
- • Work in high-lawsuit areas
- • $1M → $2M: +$100-$200/year
- • $1M → $3M: +$200-$400/year
- • $1M → $5M: +$400-$800/year
- • Umbrella policy: $150-$300/year per $1M
What Affects Your Cost?
- • High-risk industry (construction, roofing)
- • Large number of employees
- • High annual revenue
- • Previous claims history
- • Customer-facing operations
- • Hazardous activities
- • Bundle with other business policies
- • Implement safety training programs
- • Maintain clean claims history
- • Choose higher deductible ($1,000-$2,500)
- • Pay annually instead of monthly
- • Shop multiple carriers (TCDS does this for you)
Average Alabama Cost by Industry
Lower Risk ($400-$800/year):
- • Consultants and professional services
- • Office-based businesses
- • IT and software companies
Higher Risk ($1,200-$3,000/year):
- • Restaurants and retail stores
- • Contractors and construction
- • Manufacturing and distribution
TCDS shops 50+ carriers to find you the best rate. We often save businesses 20-30% compared to buying direct.
Confused About Certificate of Insurance Requirements?
General contractors keep asking for COIs but you're not sure what they need? Learn exactly what a Certificate of Insurance is, how to get one, and what information it must include.
Read the Complete COI GuideDoes Your Current Insurance Agent Provide a Written Money Back Guarantee?
TCDS does. We're so confident you'll save money and get better coverage that we guarantee it in writing. If you're not completely satisfied within the first 60 days, we'll refund your premium—no questions asked.
Read Our Written GuaranteeReady to Save on Insurance?
Get your free, no-obligation quote in minutes. Compare rates from 50+ carriers and find the best coverage for your needs.
⭐ 4.9/5 rating • 160+ reviews • No obligation • Free comparison