Does general liability cover damage to a client’s property I’m working on?

Often, no. This is one of the biggest gaps in a typical general liability insurance policy. Damage to a client’s property that is in your care, custody, or control while you are working on it is usually excluded from standard general liability coverage. Many contractors assume they are protected here and are surprised to learn they are not.

The reason is the care, custody, and control exclusion. General liability is built to cover damage to property you do not control, like a neighboring structure. Property you are actively handling or working on is treated differently, because you have direct control over it.

Here is a Georgia example. You are hired to refinish a homeowner’s hardwood floors. While moving equipment, you scratch and gouge the very floors you were hired to refinish. Because that property was in your direct care while you worked on it, a standard general liability policy would likely deny the claim, and you could be paying for repairs out of pocket.

The good news is this gap can be addressed. Depending on your trade, options include an installation floater, a tools and equipment policy, or a specific care, custody, and control endorsement that adds back coverage for client property you handle. The right solution depends on the work you do.

This is a gap worth closing before it costs you a job and a customer. Want to find out whether your policy leaves you exposed here? Get a free coverage review today.