Trade insurance
Insurance for general contractors.
General contractors carry the broadest exposure on a project and are contractually required to hold high liability limits, name owners as additional insured, and verify subcontractor coverage.
Updated 2026-05-16 · Beaconcover editorial§ 01
Why this matters
What can go wrong on the job.
- Subcontractor liability. Liability flows up to the GC for sub work
- Job-site bodily injury. Workers and third parties on active sites
- Structural property damage. Defects causing major rework or collapse
§ 02
Required vs recommended
What contracts require, and what's worth adding.
- +Commercial auto
- +Umbrella
- +Tools & equipment
- +Surety bond
§ 03
Typical premium ranges
What it tends to cost.
- General liability: $1,700 avg / year[Q]Insureon
- Umbrella: $1,721 avg / year[Q]Insureon
Figures are reported averages, not quotes. Actual premiums vary by state, revenue, payroll, and underwriting.
§ 04
Common gaps
Where this coverage trips people up.
Uninsured subcontractors get charged back to the GC at workers' comp audit
Project owners typically require $1M/$2M minimum plus additional-insured
Residential vs commercial scope materially changes pricing
§ 05
Before you bind
Questions to ask any carrier for general contractors.
- Does the quote include the lines listed above as typically required?
- What does a certificate of insurance cost and how fast can the carrier issue one?
- How is workers' compensation rated for this trade — by payroll or by class code?
- Is there a separate deductible for tools and equipment in transit between sites?
- If a client requires an additional-insured endorsement, is there a fee?