As a contractor in Illinois, you know your community. From Springfield to East Peoria, you’re a local business owner serving your neighbors—not just another number in a national database. So why settle for one-size-fits-all insurance? While big national carriers offer generic plans, the right General Liability Insurance often comes from a local expert who truly understands your risks. We believe in a personalized approach, helping you build a policy that protects your specific work. This lets you focus on the job with the confidence that a trusted local team has your back.
Key Takeaways
- Understand Your Core Protection: General liability is your essential shield against claims that you caused injury to someone or damaged their property. Remember that it doesn’t cover your own professional mistakes or faulty work—that requires a separate Errors & Omissions (E&O) policy.
- Vet Your Insurer Like a Business Partner: The cheapest quote isn’t always the best value. Look beyond the price tag to compare an insurer’s financial stability and customer service reputation to ensure you have a reliable company that will be there when you need to file a claim.
- Treat It as a Professional Requirement: Most clients, contracts, and state licensing boards require proof of insurance before you can start a job. Having your policy in place is a non-negotiable step that demonstrates your credibility and protects your business from day one.
What Is General Liability Insurance for Contractors?
General liability insurance is one of the most important policies a contractor can have. Think of it as your business’s first line of defense against the everyday risks that come with working on a job site. It’s designed to protect you from claims that your business caused bodily injury to someone—like a client, vendor, or bystander—or damaged their property. For example, if a homeowner trips over your toolbox and breaks their wrist, or if you accidentally shatter a window while carrying equipment, this is the policy that steps in to cover the costs.
Beyond covering immediate medical bills or repair costs, this insurance also handles the legal side of things. If a claim escalates into a lawsuit, your general liability policy will cover your defense costs, including attorney fees, court fees, and any settlements or judgments against you, up to your policy limit. This protection is fundamental for any contractor, whether you’re a solo operator or run a small crew. It provides the financial backing to handle unexpected accidents without putting your personal assets or the future of your business on the line.
Do Contractors Really Need General Liability Insurance?
The construction field is full of risks, and accidents can happen no matter how careful you are. General liability insurance is your financial safety net. It protects your business from the high costs of claims that could otherwise drain your bank account. It’s especially important for independent contractors, because you aren’t covered by your client’s insurance policy. If something goes wrong on their property, you are personally responsible for the damages. Having your own business insurance is the only way to properly manage these risks and protect the business you’ve worked so hard to build.
What Does General Liability Insurance Actually Cover?
So, what exactly does this policy handle? General liability insurance for contractors typically covers a few key areas. The most common are bodily injury and property damage claims from third parties, like clients or visitors to your job site. It also provides coverage for “personal and advertising injury,” which includes things like slander, libel, or copyright infringement in your marketing materials. A great feature is that it can also cover medical payments for minor injuries that happen on your site, even if you aren’t legally at fault. This can help resolve issues quickly and prevent a small accident from becoming a major lawsuit.
Products-Completed Operations Coverage
What happens after you’ve finished a job, packed up your tools, and received the final payment? Your work is done, but your liability isn’t. This is where products-completed operations coverage comes in. It’s a crucial part of your general liability policy that protects you from claims of injury or property damage caused by your work *after* you’ve left the job site. For example, if a deck you built collapses a year later and injures someone, or faulty wiring you installed causes a fire, this coverage would handle the resulting lawsuit. It helps cover the legal costs to defend your business, which can be a lifesaver.
It’s important to understand what this coverage doesn’t do. It won’t pay to repair or replace your own faulty work—that’s generally a business risk you assume. However, it will pay for the damage your faulty work caused to other property. So, while it wouldn’t cover the cost of rebuilding the faulty deck, it would cover the medical bills for the person who was injured when it collapsed. This distinction is key, as it protects you from the catastrophic financial fallout of an accident while still holding you accountable for the quality of your craftsmanship. It’s a must-have for any contractor who wants long-term peace of mind.
Damage to Premises Rented to You
As a contractor, you often work in spaces you don’t own. Whether you’re leasing a small workshop, renting equipment, or working inside a client’s home, you are temporarily responsible for that property. “Damage to Premises Rented to You” coverage is the part of your general liability policy that protects you if you accidentally cause damage to a space you rent or occupy. For instance, if you accidentally start a small fire that damages the kitchen you’re remodeling, or if you knock a hole in the wall of your rented workshop, this coverage would pay for the repairs.
Without this protection, you’d be on the hook for those repair costs out of your own pocket, which could easily derail your business finances. This coverage is especially important because standard general liability policies often have what’s known as a “care, custody, or control” exclusion, which denies claims for damage to property you are temporarily in charge of. This specific provision closes that gap, ensuring you’re protected when working on-site. It’s one of those essential details that a good insurance partner will make sure is included in your policy, giving you the confidence to work in any location without worrying about the financial risk of an accident.
What Isn’t Covered by General Liability Insurance?
It’s just as important to understand what general liability doesn’t cover. This policy won’t pay for injuries to you or your own employees; that’s what Workers’ Compensation insurance is for. It also doesn’t cover damage to your own tools or equipment. Another major exclusion is professional mistakes or faulty workmanship—for instance, if a deck you built collapses due to a design flaw. Protection against those kinds of errors requires a separate policy called Errors & Omissions (E&O) insurance, also known as professional liability. Knowing these limits helps you build a complete insurance plan.
Auto Accidents
Your general liability policy is essential for covering accidents on a job site, but its protection typically ends once your vehicle hits the road. If you or an employee gets into an accident while driving a company truck to pick up supplies or travel between projects, your general liability insurance won’t cover it. It’s also a common mistake to assume your personal auto policy will step in; most personal policies have exclusions for business use. This is where commercial auto coverage becomes critical. It’s specifically designed to protect your business from the financial fallout of automotive incidents, covering everything from vehicle damage to medical expenses for others involved.
Data Breaches
In your line of work, you handle a lot of sensitive client information, including names, addresses, and even payment details. While general liability insurance covers physical damages, it doesn’t extend to digital ones. If your systems are hacked and client data is stolen, you could be on the hook for notification costs, credit monitoring services, and potential legal fees. To protect against these modern risks, you need cyber liability insurance. This specialized policy is designed to help your business recover from a data breach by covering the associated expenses, ensuring a digital mishap doesn’t turn into a financial catastrophe.
Theft of Business Property
One of the most common misconceptions is that general liability insurance covers your own tools and equipment if they’re stolen or damaged. Unfortunately, that’s not the case. General liability is there to pay for damage you cause to a third party’s property, not your own. If your expensive tools are stolen from a job site overnight or damaged in a fire, you’ll need a different kind of coverage to replace them. This is typically covered under a policy known as inland marine insurance or as part of a comprehensive Business Owner’s Policy (BOP), which bundles property and liability coverage together.
Employee-Related Lawsuits
As your business grows and you bring on employees, you take on a new set of risks that go beyond job site accidents. General liability protects you from claims made by clients or vendors, but it offers no protection against lawsuits filed by your own employees. Allegations of wrongful termination, discrimination, harassment, or other employment-related issues require a specific type of coverage. This is where Employment Practices Liability Insurance (EPLI) comes in. It’s designed to cover your legal defense costs and any settlements or judgments if an employee or former employee sues you over your employment practices.
Liquor Liability
This might seem like an unusual risk for a contractor, but it’s one worth considering. Do you ever host a client appreciation event, a company holiday party, or even just have a few beers with the crew after a tough job? If your business provides alcohol and someone becomes intoxicated and causes an accident or injury, you could be held responsible. Your general liability policy almost always excludes these types of claims. Liquor liability insurance is a specialized coverage that protects your business from claims arising from alcohol-related incidents, giving you peace of mind when you’re celebrating your hard work.
Comparing the Best General Liability Insurance Providers
Choosing an insurance provider is about finding a partner who gets the ins and outs of your work. It’s not just about the price on the policy; it’s about the support you get when you actually need it. Whether you prefer a local expert who knows your community or a national carrier with a wide range of options, the right fit is out there. Let’s look at some of the top contenders to help you find the best general liability coverage for your contracting business.
A Closer Look: Feld Insurance
As a local Illinois provider, we at Feld Insurance pride ourselves on offering truly personalized insurance solutions for contractors. We’re not a call center; we’re your neighbors. We take the time to understand the specific risks you face on job sites right here in Springfield and East Peoria. Our goal is to build a policy that fits your business perfectly, so you’re not paying for coverage you don’t need or missing protection that’s critical. If you value having a direct line to an agent who knows your name and your business, we’re here to provide that trusted guidance and peace of mind.
A Closer Look: The Hartford
The Hartford is a great all-around choice, especially for contractors looking for high liability limits and comprehensive coverage. They are well-regarded for their Business Owner’s Policy (BOP), which bundles general liability with other essential coverages like commercial property insurance. This can simplify your insurance management and often save you money. With a strong reputation for handling claims efficiently and providing excellent customer service, The Hartford is a reliable option for contractors who want robust protection from a major national carrier.
A Closer Look: State Farm
If you’re a small contractor or handyman who values a personal connection, State Farm is an excellent option. With a huge network of local agents, you can easily find someone in your area to sit down with and discuss your needs. They consistently receive high marks for customer satisfaction, which speaks volumes about their service. While their online tools might not be as advanced as some other providers, the accessibility of their agents is a major plus for contractors who prefer a face-to-face relationship with their insurance provider.
A Closer Look: Progressive Commercial
Progressive is a household name, and their commercial division is known for offering competitive rates and flexible coverage. They make it easy to get a quote online, which is perfect for busy contractors who need to compare options quickly. Progressive is a solid choice if you’re looking for straightforward, affordable general liability insurance without a lot of bells and whistles. Their policies can be tailored to fit the needs of various trades, making them a versatile option for many different types of contracting businesses.
A Closer Look: Travelers
Travelers stands out for its exceptional customer service and financial strength. When you have a claim, you want an insurer who is responsive and reliable, and Travelers has built a strong reputation for exactly that. They have a very low volume of customer complaints, which is a great indicator of their commitment to policyholders. For contractors who prioritize stability and want assurance that their insurer will be there to pay claims promptly, Travelers is a top-tier choice that offers both security and excellent support.
How to Choose the Right Coverage for Your Business
Picking the right insurance isn’t about finding the cheapest plan; it’s about finding the smartest plan for your specific work. A general liability policy is the foundation, but the details—like coverage limits and extra protections—are what truly safeguard your business. Getting these details right from the start means you can focus on your projects with confidence, knowing you’re properly protected. It’s worth taking the time to understand your options and build a policy that fits your business like a glove.
What Coverage and Limits Do You Need?
At its core, general liability insurance protects your construction business from common claims that can pop up on any job site. Think of it as your shield against accusations of causing injury to someone or damaging their property. If a client trips over your equipment or you accidentally damage a wall, this coverage steps in to handle medical bills or repair costs. It also covers your legal fees if a claim turns into a lawsuit.
When it comes to how much coverage you need, most contracts will require you to have at least $1 million in coverage per incident and a $2 million aggregate limit for the policy term. It’s crucial to review your client contracts carefully to ensure your policy meets their specific requirements before you ever set foot on the job.
Does Your Trade Require Special Coverage?
The best insurance for a carpenter won’t be the best for an electrician. Your specific trade and the unique risks you face every day play a huge role in shaping your ideal policy. For example, licensed contractors in certain fields, like electrical or plumbing, often have to meet state or local requirements for coverage just to keep their licenses active.
This is where having a conversation with an insurance professional really pays off. We can help you understand the specific risks associated with your trade—whether you’re a general contractor in Springfield or a specialized tradesperson in East Peoria. A personalized approach ensures you aren’t paying for coverage you don’t need or, worse, missing a protection that’s critical for your line of work.
Blanket Additional Insured Coverage
Many client contracts will require you to add them as an “additional insured” on your policy. This simply means your liability coverage extends to protect them from claims arising out of your work. Instead of adding each client one by one, which is a hassle, you can get “blanket” coverage. This automatically extends protection to any person or organization you’re contractually required to cover. It’s a huge time-saver and shows clients you’re professional and prepared. This feature, combined with coverage for minor medical payments on-site, helps you manage relationships and resolve small issues before they can escalate into costly legal battles.
Coverage for High-Risk Businesses
If your work involves significant risks—like roofing, electrical work, or operating heavy machinery—then robust general liability insurance isn’t just a good idea; it’s essential. For high-risk trades, a single accident can lead to a claim large enough to threaten your entire business. This policy acts as your financial safety net, protecting your assets from the potentially devastating costs of a lawsuit. Remember, as an independent contractor, you are not covered by your client’s insurance. If something goes wrong on their property because of your work, the responsibility falls squarely on you. Having the right coverage is the only way to properly manage these risks and protect the business you’ve worked so hard to build.
Should You Consider Optional Add-Ons?
Think of your general liability policy as the solid frame of a house. Endorsements are the custom finishes that make it perfect for you. These add-ons can expand your coverage to include things your standard policy might not, like protecting your tools and equipment or adding the property owner as an additional insured party on your policy.
You can also bundle your general liability with other essential coverages, like commercial property insurance, into a package called a Business Owner’s Policy (BOP). This is often a smart and cost-effective way for small businesses to get comprehensive protection without juggling multiple policies. We can walk you through the endorsements and bundles that make the most sense for your operations.
How Much Does General Liability Insurance Cost?
Let’s get straight to the question on every business owner’s mind: what’s the price tag? The honest answer is that there’s no one-size-fits-all cost for general liability insurance. Think of it like any other custom tool for your business—the final price depends on what you do, how you do it, and the level of protection you need. Your premium is tailored specifically to your business’s unique risks and operations, which means you only pay for the coverage that makes sense for you.
While I can’t give you an exact number without knowing your details, I can walk you through what goes into calculating your rate. Understanding these factors helps you see why your quote is what it is and gives you a clearer picture of what to expect. The good news is that you have some control over this number. By managing your risks and making smart choices about your coverage, you can find a policy that fits your budget while still giving you the peace of mind you need to focus on your work.
What Factors Determine Your Insurance Cost?
Insurance companies look at several key details to determine your premium. Your industry plays one of the biggest roles. A roofing contractor, for example, faces more daily risks than a graphic designer working from home, so their insurance will likely cost more. Your business’s size, including your annual revenue and number of employees, also matters because more activity can mean more exposure to potential claims. Where you operate in areas like Springfield or East Peoria can influence your rate due to local regulations and risks. Finally, the amount of coverage you choose is a major factor; higher policy limits will naturally come with a higher premium.
Average General Liability Costs by Trade
While your final cost will be unique, looking at averages can give you a helpful starting point. On average, many small businesses pay around $42 per month for a general liability policy. For contractors, the range is typically a bit wider due to the hands-on nature of the work, often falling between $61 and $192 per month. Remember, these are just ballpark figures to give you an idea. Your business has its own story and specific needs. The only way to know for sure what you’ll pay is to get a personalized quote so we can look at your situation and find the most accurate rate for you.
Understanding Average Costs and Ranges
While every policy is unique, looking at industry averages can give you a general idea of what to expect. These numbers are a great starting point, but remember they don’t account for the specific details of your business. The best way to get a true picture of your costs is to get a quote based on your individual operations, trade, and coverage needs. Let’s break down some of the common cost benchmarks you might see.
Median vs. Average Monthly Premiums
When you look at general liability insurance costs, you’ll see a lot of different numbers. On average, many small businesses pay around $42 per month. However, for contractors, that figure is often higher, typically falling somewhere between $61 and $192 per month. This is because the hands-on nature of construction and trade work presents more opportunities for accidents and property damage. Your specific trade, experience, and claims history are what truly shape your premium, so it’s important to view these averages as a guide, not a guarantee. The final premium will be tailored to your business’s unique risk profile.
Typical Annual Cost for a $1 Million Policy
A $1 million general liability policy is the industry standard and often the minimum coverage required by client contracts. The annual cost for this level of protection can range anywhere from $300 to over $2,000. Why such a wide range? It all comes down to risk. A painter who primarily works on interior residential projects will likely be on the lower end of that scale, while a roofer working on large commercial buildings will be on the higher end. This is where a personalized quote becomes so valuable; it allows us to assess your specific operations and find a price that accurately reflects your risk.
Costs for Low-Risk Businesses
You might see ads for general liability insurance starting as low as $19 per month. This price point is typically reserved for very low-risk businesses, like consultants or freelance writers who work from home. While some contractors might fall into a lower-risk category—perhaps a handyman who only does minor repairs—most hands-on trades involve a higher level of risk. It’s important to be realistic about the potential for accidents in your line of work. While a low price is appealing, ensuring your coverage limits are high enough to truly protect your business is far more important than finding the absolute cheapest plan.
Smart Ways to Lower Your Premium
You can be proactive about making your insurance more affordable. One of the most effective strategies is to bundle your general liability insurance with commercial property insurance into a Business Owner’s Policy (BOP). Insurers often offer a discount for combining these essential business coverages. You can also lower your premium by creating a safer work environment. Implementing a formal safety program, documenting your procedures, and maintaining a clean claims history shows insurers that you’re a lower risk. Finally, don’t be afraid to ask about other discounts, like paying your annual premium in full instead of in monthly installments.
Consider Tax Deductions
Here’s another financial benefit that often gets overlooked: your general liability insurance premiums are usually tax-deductible as a business expense. Since this coverage is a necessary cost of doing business and protecting your assets, the IRS typically allows you to write off the amount you pay for your policy. This can help lower your overall tax burden at the end of the year, making your insurance even more affordable. However, tax laws can be complex, so it’s always a smart move to chat with your accountant or a tax professional. They can confirm how this deduction applies to your specific business structure and ensure you’re taking full advantage of the savings you’re entitled to.
How to Compare Insurance Quotes Like a Pro
Getting insurance quotes can feel like a chore, but it’s one of the most important steps in protecting your business. When you know what to look for, you can move through the process with confidence and find a policy that truly fits your needs without overpaying. It’s not just about finding the lowest price; it’s about finding the best value and a partner you can trust. Think of it as vetting a new hire—you want someone reliable, reputable, and ready to have your back when things get tough. A great insurance policy provides peace of mind, and that comes from knowing you have the right coverage with a company that will be there for you.
What to Have Ready Before Requesting a Quote
Walking into the quote process prepared will save you a ton of time and lead to a more accurate estimate right from the start. Insurers need specific details to understand your business’s unique risks. Before you pick up the phone or fill out an online form, take a few minutes to gather your key business information. Have details like your business type, location, number of employees, and annual income handy. It’s also helpful to have a list of your past projects or any previous insurance claims. This preparation shows you’re serious and helps an agent find the best possible coverage for you.
What to Look for in a Quote Besides the Price
It’s tempting to jump on the cheapest quote you find, but price is only one piece of the puzzle. A low premium could mean you’re getting a bare-bones policy that leaves you exposed. Instead, get quotes from a few different companies to establish a baseline. From there, dig a little deeper. Check the insurer’s financial strength rating from a trusted source like AM Best to make sure they can actually pay out a claim. Most importantly, review the policy documents carefully. Understand the coverage limits, deductibles, and exclusions. If you need help making sense of the fine print, our team at Feld Insurance is always here to walk you through it.
Red Flags to Spot in a Quote
A great quote comes from a great company. Before you commit, do a quick background check on the insurer’s reputation. Look up their customer satisfaction scores and complaint history. A high number of complaints is a clear warning sign that you might have a hard time if you ever need to file a claim. A quote that’s dramatically lower than all the others can also be a red flag, as it might signal hidden fees or insufficient coverage. You’re looking for a partner who will be responsive, fair, and supportive when you need them most, not just one who offers the lowest price tag.
When Is General Liability Insurance Required?
Figuring out when you need general liability insurance can feel like a moving target, but it’s simpler than you might think. For most contractors, it’s not a question of if you need it, but when. The short answer is: you likely need it right now. This isn’t just another expense to add to your list; it’s a fundamental part of running a professional and protected business. Think of it as the foundation of your business’s financial safety net, protecting everything you’re working so hard to build from unexpected accidents, injuries, or property damage claims.
There are three main situations that will require you to have a general liability policy in place. First, you’ll need it before you even think about swinging a hammer on your first official job. Second, your state or city may legally require you to have it to get your contractor’s license. And third, clients and other businesses you work with will almost certainly demand proof of insurance before they sign a contract with you. Each of these scenarios is a critical checkpoint in your career, and being unprepared can mean losing out on jobs or even facing legal trouble. Let’s break down exactly what these requirements look like so you can make sure you’re covered from every angle.
Why You Need Coverage from Day One
It’s tempting to wait until you have a few jobs under your belt before investing in insurance, but that’s a risky move. General liability insurance is a foundational tool you should have from day one. Having a policy in place before you take on your first project shows potential clients that you’re a serious, credible professional who takes responsibility for your work. It builds immediate trust. More importantly, it protects your new business from a lawsuit before you’ve even had a chance to grow. Accidents can happen anytime, and being covered from the start ensures a simple mistake doesn’t end your business before it begins.
Does Your State Require General Liability Insurance?
Depending on where you operate, you might be legally required to carry general liability insurance. Many states, counties, and cities mandate that contractors have a certain level of coverage to obtain or renew a license. Here in Illinois, for example, specific trades have insurance requirements you must meet. Even if your specific trade doesn’t require it for licensing, clients often check for it as a standard part of their hiring process. It’s always a good idea to understand your local regulations to ensure you’re fully compliant. This isn’t just about following the rules—it’s about operating a legitimate business that clients can rely on.
Will Your Contracts or License Require It?
Beyond government regulations, the business world has its own set of rules. If you plan to work as a subcontractor for a larger company, bid on commercial projects, or even rent a commercial space, you’ll almost always be asked for a certificate of insurance. Landlords and clients need to know that you can cover any potential damages you might cause. For specialized trades like electricians, maintaining a certain amount of general liability coverage is often a condition of keeping your professional license active. Without it, you could be shut out of valuable jobs and partnerships, limiting your ability to grow.
Don’t Fall for These General Liability Insurance Myths
When it comes to insurance, what you don’t know can hurt you. Misconceptions about general liability insurance are common, and they can leave your contracting business exposed to serious financial risks. Believing these myths can lead you to skip essential coverage, leaving you on the hook for accidents, lawsuits, and property damage. Let’s clear the air and walk through some of the most frequent myths so you can make sure your business is built on a solid, protected foundation. Getting the facts straight is the first step toward securing the right business insurance and gaining true peace of mind.
Myth #1: It’s Optional for Small Contractors
Many contractors think that if they’re a small operation, general liability insurance is a “nice-to-have” rather than a necessity. However, this is rarely the case. While there might not be a sweeping federal mandate, many states, cities, and counties require you to have a policy in place just to get your contractor’s license. Beyond legal requirements, most clients and general contractors will ask for proof of insurance before they even consider hiring you. It’s a standard part of any professional contract. Think of it less as an option and more as a key to unlocking bigger and better jobs.
Myth #2: It Covers All Professional Mistakes
This is one of the most critical misunderstandings about general liability insurance. This policy is designed to cover third-party claims of bodily injury, property damage, and advertising injury—for instance, if you accidentally damage a client’s wall or a visitor trips over your tools. It does not cover mistakes related to the quality of your professional work or advice. For that, you need a separate policy called Errors & Omissions (E&O) or Professional Liability insurance. If a structural flaw is traced back to your faulty work, E&O is the policy that would respond, not general liability.
Myth #3: It’s Too Expensive for My Business
Worrying about costs is a normal part of running a business, but the idea that general liability insurance is unaffordable is usually off the mark. In reality, it’s one of the most budget-friendly policies you can buy. For many small businesses, premiums can be less than $50 per month. The cost of a policy is a small, predictable expense compared to the potentially devastating cost of a single lawsuit, which could easily bankrupt an unprotected business. The best way to know for sure is to get a personalized quote, which we can help you with.
How to Get Your General Liability Policy
Getting the right general liability policy doesn’t have to be a complicated ordeal. It’s really about understanding your business, knowing what to look for, and following a few straightforward steps. Think of it as another project on your list—one that protects all your future projects. The goal is to find coverage that fits your specific work, gives you peace of mind, and satisfies your clients’ requirements without any unnecessary hassle. With a clear plan, you can secure your policy quickly and get back to focusing on what you do best. Let’s walk through exactly how to get it done.
Applying for Your Policy: A Step-by-Step Guide
First, take a moment to assess your needs. Think about the unique risks your contracting business faces. Many clients will require a certificate of insurance before they even hire you, so understanding your coverage needs from the start is essential. Next, gather your information. You’ll need details like your annual revenue, number of employees, and the specific type of work you do to get an accurate quote.
Once you have your information ready, it’s time to request quotes. We recommend reaching out to a few providers to compare your options. When you get the quotes, look closely at the policy details, including deductibles and how legal costs are handled. Finally, review the policies with a fine-tooth comb. Understand what’s covered and, just as importantly, what’s excluded. Don’t be shy about asking about special endorsements that might be a good fit for your work.
How Long Does It Take to Get Covered?
You might be picturing a mountain of paperwork and weeks of waiting, but getting your general liability policy is often much quicker than you’d think. Thanks to streamlined online processes, you can typically get quotes and even purchase your insurance in just a few minutes. The most time-consuming part is usually the prep work—gathering your business details and thinking through your coverage needs. Once you have that sorted out, the actual application and purchase can be completed in one sitting. This means you can go from unprotected to fully covered in less time than it takes to have a lunch break, ensuring you’re ready for that next big job without any delays.
You’re Covered. What’s Next?
Congratulations on getting your policy! Your work isn’t quite done, though. The first thing you should do is get a certificate of insurance. This is the document you’ll show to clients or landlords as proof that you’re covered. Keep a digital copy handy so you can send it over quickly whenever it’s requested. It’s also a great idea to set a calendar reminder to review your policy annually. Your business will change and grow, and your insurance coverage should keep up. If you’ve hired new employees, expanded your services, or invested in expensive new equipment, you’ll want to make sure your policy still provides the right level of protection.
Related Articles
- Liability Protection – Feld Insurance
- Homeowners Insurance 101: What’s Covered, How to Choose, and Why Liability Matters – Feld Insurance
- Homeowners Insurance Explained | Feld Insurance IL
Frequently Asked Questions
Do I still need general liability insurance if I’m a solo contractor or my business is an LLC? Yes, absolutely. Operating as a solo contractor or an LLC doesn’t protect you from lawsuits related to property damage or injuries you might cause on a job site. In fact, most clients will require you to have your own policy before they hire you, regardless of your business structure. This insurance protects your business assets from being drained by a legal claim, ensuring a simple accident doesn’t jeopardize the company you’ve built.
What’s the difference between general liability and workers’ compensation insurance? This is a great question because they cover two completely different things. General liability insurance protects you from claims made by third parties, like clients or vendors, for injuries or property damage your business causes. Workers’ compensation, on the other hand, is for your own team. It covers medical expenses and lost wages for your employees if they get hurt while on the job.
My client is asking for a ‘certificate of insurance.’ What is that and how do I get one? A certificate of insurance (COI) is simply a one-page document that proves you have an active insurance policy. It summarizes your coverage, policy limits, and effective dates. Think of it as your insurance ID card. Getting one is easy; once your policy is active, just ask your insurance provider. We can typically send a digital copy over to you right away so you can forward it to your client and get to work.
Will this policy protect my tools and equipment if they are damaged or stolen? General liability insurance does not cover your own business property, including your tools and equipment. Its purpose is to cover damage you cause to a third party’s property. To protect your gear, you would need a different type of coverage, which can often be bundled with your general liability policy in a Business Owner’s Policy (BOP) or through a separate inland marine policy.
What should I do if a client’s contract requires higher liability limits than my current policy offers? This is a common situation as you take on larger projects. If a contract requires higher limits, contact your insurance agent immediately. You can often increase your policy limits temporarily for a specific job or permanently if you plan to take on more work of that scale. Another option is to purchase a commercial umbrella policy, which provides extra liability coverage on top of your existing policies.