What insurance does a general contractor need?
Not all professions face the same risks. Below is a breakdown of every coverage type relevant to general contractors — what each one covers, whether it's required, and what you should expect to pay in 2026.
General LiabilityRequired
$150–$400/mo
Essential for all GCs. Covers property damage and injuries arising from construction operations. Required for virtually all contracts.
Workers CompensationRequired
$200–$600/mo
Mandatory for any employees. Construction has extremely high injury rates.
Builder's Risk
$50–$150/mo
Covers buildings under construction against fire, theft, vandalism, and weather damage.
Commercial AutoRequired
$100–$300/mo
Covers your fleet of vehicles and equipment in transit.
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Top risks for general contractors
- Worksite injury to employee or subcontractor
- Property damage during construction
- Project delay dispute
- Defective work claim
- Subcontractor negligence
How much does insurance cost?
Most general contractors pay $400–$1,200/month for a complete coverage package. Your exact cost depends on your state, annual revenue, whether you have employees, your claims history, and the coverage limits you choose.
Frequently asked questions
How much general liability do I need as a GC?
Most commercial contracts require $1M–$2M per occurrence. Large commercial projects often require $5M or more. Residential GCs typically operate with $1M/$2M.
Am I responsible for my subcontractors?
As GC, you can be held liable for subcontractor negligence even if you're not directly at fault. Always require subcontractors to carry their own insurance and name you as additional insured.
What is builder's risk insurance?
Builder's risk covers the structure being built against damage during construction. It's typically required by lenders and project owners. Coverage ends when the project is complete.
How to get the best rate
The fastest way to find the lowest rate is to compare multiple carriers side by side. Most general contractors can get quotes from 3–5 insurers in under 10 minutes and receive their certificate of insurance the same day.