Most contractors need three layers: general liability for property damage and injury claims on the job, workers compensation once you cross the employee threshold, and coverage for tools and equipment that travel between job sites, which a standard property policy tied to a fixed business address usually will not cover. How much general liability you need often is not up to you alone. Many general contractors and property managers set a minimum limit (commonly $1 million per occurrence) as a condition of hiring a subcontractor, so check your contracts before assuming your current limit is enough.
Which kind of contractor are you?
Coverage sized for a general contractor coordinating subs does not fit a solo handyman, and the reverse. What changes by concept:
| Concept | What changes most |
|---|---|
| General contractor | Completed-operations exposure is central since you are responsible for the whole job; subcontractor coverage verification becomes a core risk-management task. |
| Specialty trade (roofing, electrical, plumbing) | Trade-specific liability profile; some trades carry meaningfully higher severity exposure than others even at similar revenue. |
| Renovation and remodeling | Working inside occupied, finished structures raises property-damage claim frequency; existing-condition disputes are common. |
| New construction | Builders risk coverage becomes central for the length of the project; longer project timelines mean longer exposure windows. |
| Handyman and small jobs | Lower exposure per job but higher claim frequency from volume; many small clients means many separate certificate-of-insurance requests. |
The right structure depends on which of these you actually are, and many contractors are more than one. A licensed advisor can work through your specific trade and project mix in a coverage review.
What drives the cost of contractor insurance?
A roofer and a handyman pay very different rates even at the same revenue, because the trade itself drives most of the risk. These are the factors carriers actually rate on:
- Trade and scope of work. Roofing, electrical, and excavation carry more severe injury exposure than interior finish or handyman work.
- Whether you subcontract, and whether subs carry their own coverage. An uninsured subcontractor's injury can become your claim.
- Annual revenue and payroll. General liability and workers compensation both rate off these directly.
- New construction vs. renovation vs. service calls. Working inside an occupied, finished structure raises property-damage claim frequency.
- Height, depth, or specialty work. Roofing and excavation carry higher severity than ground-level trades.
- Owned vs. rented equipment, and its replacement cost. What it would cost to replace your tools and equipment today.
- Claims history. Prior property-damage or injury claims move rate more than almost anything else.
- Safety program and certifications. Documented training and safety practices can work in your favor.
What you can actually influence
Some of this is fixed by your trade. Others are not: raising deductibles, requiring and verifying subcontractor certificates of insurance before every job, documenting your equipment values accurately, and maintaining a clean claims history all move your number.
What we will need to quote you
A coverage review goes faster if you have these ready: your current declarations page, annual revenue, annual payroll and employee count, a rough breakdown of new construction vs. renovation vs. service work, whether and how much you subcontract, and a rough tools and equipment value. Most owners have all of this within reach.
What does Georgia require?
Georgia requires workers' compensation coverage once a business regularly employs three or more people, including officers and LLC members counted toward that total. That threshold is set under O.C.G.A. Sec. 34-9-2(a)(2). Separately, Georgia's contractor licensing boards commonly require proof of general liability insurance as a condition of getting or renewing a license, with minimums that vary by license classification. A licensed advisor can confirm the exact minimum tied to your specific license type.
Source: Georgia State Board of Workers' Compensation, "Workers' Compensation Insurance FAQs" (O.C.G.A. Sec. 34-9-2(a)(2)).
Explore more Georgia insurance facts and statistics, each cited to a government or research source →
What do contractors commonly overlook?
Subcontractors without their own coverage
If a subcontractor you hire gets injured and carries no workers compensation of their own, the claim can land on your policy instead. Always collect a certificate of insurance from every subcontractor before they start work, not after.
Tools and equipment away from your shop
A standard business property policy is often written for a fixed location. Tools and equipment that travel with you to job sites usually need inland marine coverage to be protected against theft or damage away from your shop.
Work in progress on someone else's property
A project under construction, before it is finished and handed over, typically needs builders risk coverage rather than standard property insurance, especially for larger renovation or new-build jobs.
Completed operations exposure
A claim can surface months after a job is finished, for example a leak traced back to plumbing you installed last year. Confirm your general liability policy covers completed operations, not just work while it is in progress.
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Common contractor insurance questions
It depends on your trade, project size, and often on what your contracts require. Many general contractors and property managers require subcontractors to carry at least $1 million per occurrence as a condition of hiring them. Check your specific contracts, and a licensed advisor can confirm the right limit for your work.
Georgia's three-or-more-employee threshold applies to actual employees. Subcontractors who carry their own workers comp are typically excluded from your count, but if a subcontractor has no coverage of their own, the financial exposure from their injury can still land on you. Always verify a subcontractor's coverage before they start work.
Usually not. General liability covers injury and property damage claims from third parties, not your own equipment. Tools and equipment that travel between job sites typically need their own inland marine coverage.