General Liability Insurance for Contractors in California
Protecting Your Construction Business Starts with the Right Liability Coverage
General liability insurance for contractors isn’t optional in California—it’s a foundational coverage that protects your business from costly lawsuits and claims. Whether you’re building homes in the San Gabriel Valley or remodeling kitchens in Pasadena, every job site comes with risk. Calrisk helps contractors across Southern California get the coverage they need to stay compliant, win more jobs, and protect what they’ve built.
Why Every California Contractor Needs Liability Insurance
General Liability Insurance (often called CGL) covers third-party bodily injury, property damage, and certain personal injury claims that can arise from your operations. If a client slips on-site or you accidentally damage a customer’s property, this policy covers legal costs, medical bills, and potential settlements.
California law requires all licensed contractors to carry general liability insurance.
Many customers—especially general contractors or commercial clients—won’t work with you unless you provide proof of coverage. Calrisk makes that process easy.
Common Job Site Risks That General Liability Covers
Construction work is unpredictable. Here’s what your GL policy helps you handle:
01.
Property Damage
A ladder falls and cracks a customer’s window? GL pays for the repairs.
02.
Bodily Injury
A visitor trips on equipment and breaks a wrist? You’re covered.
03.
Personal & Advertising Injury
A claim of slander or libel from your marketing materials? That’s part of your GL policy too.
These aren’t rare events—they’re part of doing business in the field. GL insurance helps keep those risks from turning into financial disasters.
What’s Included in a General Liability Policy?
Most construction liability policies include standard coverage limits of $1 million per occurrence and $2 million aggregate—but those limits can be increased based on your contract needs. Calrisk can help you secure:
- Additional Insured endorsements
- Waivers of Subrogation
- Primary & Non-Contributory wording
- Blanket or project-specific endorsements
We’ll also make sure you’re covered across all your job types—whether you’re framing new builds in Arcadia, doing tenant improvements in Burbank, or bidding on public works in LA County.
Certificates of Insurance—Fast & Accurate
Need to show proof of GL insurance for a job bid or subcontract agreement? We provide same-day COIs so you’re never held up waiting. Our team knows what your clients want to see—and we make sure it’s right the first time.
What Impacts the Cost of Contractor General Liability Insurance?
No two contractors pay the same rate. Factors that affect your premium include:
- Type of work performed (painting vs. roofing vs. plumbing)
- Annual revenue and payroll
- Location of operations
- Claims history and coverage limits
Most small construction businesses in California pay between $1,200 and $2,000 per year for general liability coverage. But the cost of not having it—lawsuits, client disputes, or a license issue—can be far higher.
What General Liability Doesn’t Cover
It’s important to know what GL won’t cover:
- Injuries to your own employees (that’s Workers’ Comp)
- Damage to your own equipment or jobsite tools (see Tools & Equipment coverage)
- Errors in design or workmanship (covered by Professional Liability)
That’s why we work with you to build a complete risk plan—not just one policy.
Local Help from People Who Understand Construction
At Calrisk, we specialize in construction insurance and only construction insurance. We work with independent contractors and growing firms from Monrovia to Moreno Valley, and everywhere in between. Our team will match you with the right carrier, ensure you’re meeting contract requirements, and stay on top of your changing needs as your business grows.
Let’s get your coverage right—call us for a quote or contact us today.
Frequently Asked Questions – General Liability for Contractors
Is general liability insurance required for contractors in California?
Yes. In California, all licensed contractors must carry general liability insurance that meets state requirements. This helps protect the public from potential financial harm and is also often required by clients and general contractors before you can start a job.
What does general liability insurance actually cover?
It covers third-party bodily injury, property damage, and certain personal injury claims like libel or slander. If a visitor is injured on your jobsite or you damage a client’s property, GL insurance helps cover medical bills, repairs, legal defense, and settlements.
Does general liability cover my workers if they get injured?
No. General liability covers third parties—not your own employees. For employee injuries, you’ll need Workers’ Compensation Insurance, which is also required by California law if you have any employees.
How much does general liability insurance cost for a small contractor in California?
Rates vary, but many small to midsize contractors in California pay between $1,200 and $2,000 per year. Your premium depends on the type of work you do, your revenue/payroll, your claims history, and how much coverage you need.
Do I need additional endorsements or certificates for jobs?
Often, yes. Many clients require “Additional Insured” endorsements, waivers of subrogation, or specific wording to satisfy their contracts. At Calrisk, we help you tailor your policy so it checks all the boxes—and we issue Certificates of Insurance fast.
What’s the difference between general liability and builder’s risk insurance?
General liability covers damage you cause to other people’s property or injuries to third parties. Builder’s risk covers the structure under construction, tools, and materials on site. For most jobs, having both is smart.
Can I bundle general liability with other contractor insurance policies?
Yes. Many contractors choose to combine GL, Workers’ Comp, Commercial Auto, Builder’s Risk, and other coverages into a comprehensive package. Calrisk can build a customized plan that fits your operations and budget—see our full services here.