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General Contractor Insurance

Save up to 30% on business insurance
Construction insurance

General contractor liability insurance designed to protect your business

NEXT Insurance is a one-stop-shop to help you get the general contractor insurance you need to protect your business from accidents, injured employees, legal fees and damaged vehicles. Our insurance packages typically include: 

  • General liability
  • Workers’ compensation
  • Commercial auto
  • Tools and equipment
  • Commercial property
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Save up to 30% on General Contractor insurance

You can pay for your insurance package on a monthly or annual basis and you can cancel instantly at any time.

We’ll help you get the business insurance coverage you need

It’s all about managing your risk. See the different policies available for general contractors and save 10% when you bundle.
General Liability

General Liability

Bought by 95% of business owners like you
General liability insurance for contractors covers a wide range of construction accidents and basic risks. You’ll have financial protection if someone other than an employee gets hurt or you are held responsible for damaging property that doesn’t belong to you. It’s often required by project owners and licensing agencies. General liability includes contractors’ E&O, or professional liability coverage, which can help cover costs in a business disagreement.
General Liability can help you pay for:
Medical payments
Property damage
Legal fees and judgments
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Contractors’ E&o

Contractors’ E&o

Bought by 80% of business owners like you
Errors and omissions insurance (also known as professional liability) helps you to defend yourself if you’re accused of making a mistake that causes someone to lose money. For example, if you are accused of project cost overruns, it could help cover related expenses to defend yourself.
Contractors’ E&o can help you pay for:
Professional negligence (actual or alleged)
Legal defense costs
Legal judgments
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Commercial Auto

Commercial Auto

For business owners who own or drive vehicles
Most states require commercial auto insurance for construction business-owned vehicles to help pay for medical expenses and property damage. Personal auto insurance usually won’t provide coverage if you drive your own truck to a job site.
Commercial Auto can help you pay for:
Medical expenses
Collision repairs
Rental reimbursement
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Workers' Compensation

Workers' Compensation

For business owners who hire employees
Workers’ compensation insurance provides financial protections for workplace injuries. Most states require it as soon as you hire your first employee, and you might need coverage before you can get your contractor license. It can help pay for medical bills and lost wages after an accident.
Workers' Compensation can help you pay for:
Medical expenses
Lost wages
Employer liability
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Tools & Equipment

Tools & Equipment

Protection for your gear and equipment
Tools and equipment coverage makes sure your gear is protected wherever you keep it — in your vehicle, in a trailer or at a job site. If you don’t own or lease property and regularly take expensive gear to a job site, tools & equipment insurance offers protection against damage or theft. This coverage is available as an add-on to our general liability insurance.
Tools & Equipment can help you pay for:
Equipment owned by you
Employee tools and clothing
Borrowed equipment
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Commercial Property

Commercial Property

For business owners who own or rent physical spaces
Commercial property insurance can help protect your business equipment, inventory and your building if you own it. If you own real estate where you store equipment, commercial property insurance provides coverage for your equipment while it’s on the premises, as well as for the building itself.
Commercial Property can help you pay for:
Damaged equipment and inventory
Lost income
Operating expenses
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How much does insurance cost

How much does general contractor insurance cost?

General contractor insurance costs vary based on the risks that your business faces, such as:

  • The types of projects you work on
  • Where your projects are located
  • Your payroll and the kinds of jobs our employees do
  • The number and types of vehicles you use at work

General contractors save up to 30%, depending on the kind of work that’s done. More risky professions can expect to pay more.

Learn more about general contractor insurance costs and coverage.

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General contractor insurance requirements

General contractors are almost always required to have insurance due to the risk of injury and property damage. You might need insurance to:

  • Get a general contractor license. Learn more about the general contractor license requirements in your state.
  • Win a bid or start work on a project. Clients and local governments might ask you to have active insurance — usually general liability or workers’ compensation.
  • Hire employees or subcontractors. Most states require workers’ compensation.
  • Drive for business purposes. Business-owned vehicles typically need commercial auto insurance.
  • Repair or replace property you own or rent. Protect your inventory, equipment and even the building that you lease or own.
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Everything you want to know about Insurance

Frequently asked questions about business insurance

Here are some of the most common questions we get about general contractor insurance. If you don’t find the answers you need here, our licensed, U.S.-based insurance advisors are standing by to help via online chat or phone.

How does business insurance protect general contractors?

Our contractor insurance packages are designed to protect your business from a variety of risks and help you save money to grow your business. You’ll be protected from financial losses related to:

Damage to someone’s property

Your ladder slips and crashes through a living room window. The general liability coverage in your insurance package would help pay for a replacement.

Accidents that hurt someone

A distracted homeowner trips over your extension cord, breaks their ankle and sues you. Your general liability coverage would also come into play here by helping to pay for medical costs and legal fees.

Workplace injuries

Your employee has to get medical care and cancel some jobs after they slip and cut their finger with a drill. Workers’ compensation coverage with business owner’s coverage can help cover medical bills and lost wages. Workers’ comp is usually required by law if you have employees.

Injuries and damage involving your business vehicles

You get into a fender bender with your work truck that was ruled your fault. Commercial auto coverage will help pay for the repairs and some of the rental costs, depending on the policy limits. This coverage is also usually required by law for business-owned vehicles.

Theft or damage to your tools

Motor failure puts your compressor out of commission. The tools and equipment insurance that is optional with your general liability coverage can help pay for replacement and repair costs.

Damage to your own property

A water pipe bursts in your office and floods the entire space. Property insurance can help with replacement or repair costs if your owned or leased property is damaged due to a covered event, such as fire, tornado or vandalism.

I’m a general contractor, does this insurance allow me to hire subcontractors?

Yes. We do require that your subcontractors have the legally required licenses, their own insurance with limits that are equal to or greater than your own, and that they have you named as an additional insured on their policy. You’ll also need to keep this documentation on file for an adjuster to review in case of a claim.

I need to add a General Contractor or employer as an additional insured, can I do that with this policy?

Absolutely! We know this is a common need for contractors, so we’ve given you the power to create certificates of insurance and add additional insureds right from your customer account, 24/7, with Live Certificates. You can read more about our Live Certificates and how they work here. If your contractor needs special language on the certificate or other forms (called endorsements), please send a sample certificate to support@nextinsurance.com and an agent will be happy to review those requirements with you.

What is Contractors’ Errors and Omissions coverage?

Contractor’s Errors & Omissions coverage is intended to protect against faulty work or accidental damage to your product. This coverage is important if you work on a property that belongs to a third party but is in your care during the job, or if you construct products for your clients and want coverage in case mistakes are later discovered.

I subcontract out all of my work. Am I still eligible for a quote and policy?

Of course. In this case, we recommend filling out an application for our general contractor policy. Please review the subcontractor requirements carefully, so that in case of a claim, you’ll have all of the necessary paperwork.

Will my General Liability policy cover my tools and equipment?

In order to purchase a tools and equipment policy, your business must have an active general liability policy with NEXT Insurance. This helps ensure your business is properly covered in the event of a claim. If you are a contractor or own a cleaning business, you can add tools & equipment coverage to protect your gear if it is damaged or stolen. The easiest way to get an accurate quote for this type of coverage is to complete the 10-minute application process at www.nextinsurance.com.

Who is covered under this policy?

Good question! This actually depends on your business structure. We offer policies for individuals, LLCs, and more! If you’re not sure which one you are, we recommend checking with the department where you registered your business or filed for your licence. If you’re a registered LLC or corporation, our policies can offer coverage for your reported W2 employees, and in certain situations can extend as excess or umbrella coverage over a subcontractor’s (a 1099 employee) own policy. More information about our subcontractor requirements can be found in the “About Your Business” portion of the application, or by contacting our support team.

If I subcontract all of my work, why do I need General Liability coverage?

There are a few reasons you could still need General Liability coverage as a general contractor:

  • You may still be at risk of causing damage during a site visit, especially if you run projects that are remodels or additions, where a third party's property is potentially vulnerable.
  • You could be at risk for Personal and Advertising Injury, which includes accidental copyright infringement, defamation of character, advertising infringement, or caused some other form of non-tangible harm.
  • You could be held responsible if you instruct your subcontractors to operate a certain way, and injury arises because of your method, especially if your instructions corrected or changed the actions or processes of your subs.
  • You could be held responsible for certain actions of your subcontractors, as you were responsible for hiring them.

I’m a jack-of-all-trades – what policy do I need?

We have a couple of policies that could be right for a jack or jill of all trades. Our handyperson policy might be the best fit if you offer minor repair or maintenance services. This policy is limited to small jobs and is not a fit for jobs that might require a license, permit or inspection at any point. If your operations are a little bit larger in scale, or if you have a specialty, we recommend taking a look at our general contractor application, where you will have the opportunity to add coverage from a list of coverable activities. Note: All of our policies require that you have the legally required licenses for the work you’re doing in your state, so be sure to check in to make sure you are compliant.

Will my policy include coverage for work that I don’t have a license for?

If your state requires a license, we do too. However, in most states where insurance is a requirement to get your license, we do offer the ability to purchase the policy on the condition that you agree to have all the required licenses before working. But it’s important to remember: If you are not operating legally, a claim will likely not be covered. If your state doesn’t require you to have a license for a certain line of work, you are welcome to apply for a policy.

How do I cancel my policy?

We're sorry to see you go. To cancel your policy, please follow these instructions:

  1. Log in to your account using your email or phone number
  2. On the homepage of your customer account, click the blue arrow to the right of the policy you’d like to cancel
  3. Click "Cancel coverage"

Once you follow the prompts and submit your request, we'll process the cancellation effective immediately. You’ll receive a confirmation email and a pro-rated refund within a few business days.

Certificate of Insurance

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