What insurance does a Georgia contractor need beyond basic general liability?

General liability is the foundation every Georgia contractor needs, but it does not cover most of what can go wrong on an active job. Equipment gets stolen, trucks get into accidents, workers get hurt, and clients sue over finished work months after the crew has moved on. Each of those exposures sits outside a standard GL policy and needs its own coverage.

Does a personal auto policy cover a contractor's work vehicles?

Commercial auto is the first gap most contractors encounter. A personal auto policy excludes vehicles used for business purposes. Trucks, vans, and trailers hauling tools or materials to a job site need a commercial auto policy to be covered for accidents, damage, and liability on the road.

For example, a tile installer drives a personal truck to a client's house and hits another vehicle turning into the driveway. Because the truck was carrying tools for a paid job, the personal auto insurer can deny the claim. A commercial auto policy would have covered it.

What covers tools and equipment stolen from a job site?

Tools and equipment coverage, also called inland marine insurance, protects gear while it is in transit or stored at a job site. A roofing contractor in Kennesaw with $50,000 in compressors and nail guns on a trailer overnight has no recovery under GL if the trailer is stolen. Inland marine covers that loss.

When does Georgia law require workers compensation for contractors?

Workers compensation becomes legally required in Georgia once a business has three or more employees, including part-time workers. Georgia State Board of Workers' Compensation rules make the employer liable for medical expenses and lost wages when a worker is injured on the job. A subcontractor arrangement does not automatically transfer that obligation; Georgia's statutes treat misclassified workers as employees in many situations, so coverage gaps can appear even when a business owner believes they are protected.

For example, an electrical contractor brings in a 1099 helper for a two-week commercial job. If the helper is injured and a court finds the relationship was actually employment under Georgia law, the contractor is on the hook for medical costs and wage replacement with no coverage in place.

What is completed operations coverage and why do contractors need it?

Completed operations coverage addresses claims that arise after the work is finished. A plumber who repairs a water line and leaves, only to have a hidden leak cause ceiling damage three months later, faces a claim under completed operations, not basic GL. Many GL policies include some completed operations coverage, but the limits and conditions vary, so contractors should verify what their specific policy actually pays.

Do commercial contracts require umbrella coverage?

Commercial umbrella insurance extends the liability limits across GL, commercial auto, and sometimes employers liability. Larger general contractors and project owners frequently require umbrella limits in their subcontract agreements. A contract requiring $2 million in combined coverage is common on commercial projects in the Atlanta metro area.

How does the right coverage mix vary by contractor type?

The right mix depends on trade, crew size, contract requirements, and how much equipment a business owns. A sole-proprietor handyman and a 15-person framing crew have very different exposures, even if both carry a basic GL policy.

A free coverage review can map out exactly which policies fit your contracting business. Request your coverage review here.