Look, you probably think you’ve got your insurance figured out.

You’ve probably got general liability. Maybe workers comp. Possibly commercial auto. You’re probably “covered.”

Most general contractors think the same thing. Most of them are wrong.

Here’s What I’m NOT Going to Do:

I’m not going to tell you horror stories about contractors getting sued into bankruptcy (even though it happens weekly).

I’m not going to pretend that insurance is fun or exciting (it’s definitely not).

I’m not going to make you feel stupid for not understanding every coverage type (insurance is deliberately confusing).

I’m not going to promise that proper insurance will transform your business overnight (it won’t, unless something goes catastrophically wrong).

Honestly? You might never need half the coverage I’m about to talk about. But when you do need it, nothing else will save you.

What Being a General Contractor Actually Means (Insurance-Wise):

You’re the guy everyone blames when something goes wrong.

The owner blames you. The architect blames you. The subs blame you. The city inspector blames you.

You coordinate multiple trades, manage complex projects, and take responsibility for work you didn’t personally do.

From an insurance perspective, you’re basically a walking target with a “Sue Me” sign on your back.

The Coverage You Probably Have:

General Liability - Covers bodily injury and property damage you cause. The basic stuff everyone knows about.

Workers Compensation - Required by law. Covers your employees when they get hurt.

Commercial Auto - Covers your trucks and vehicles. Pretty straightforward.

Maybe you’ve got these three. Maybe you think you’re covered. You’re not even close.

The Coverage You Probably Don’t Have (But Need):

Umbrella Liability - Extra coverage when your primary limits aren’t enough. Spoiler alert: they’re not enough.

Professional Liability - When someone claims your advice, design, or management caused financial harm.

Builders Risk - Covers the project under construction. Someone needs to buy this, and it’s often you.

Inland Marine - Covers your tools and equipment. Your GL policy doesn’t.

Employment Practices Liability - When employees sue for discrimination, harassment, or wrongful termination.

Cyber Liability - When hackers steal customer data or shut down your systems.

Commercial Property - If you own or rent a shop, warehouse, or office space.

Why General Contractors Get Sued More Than Anyone:

You’re responsible for coordinating everyone else’s work.

When the plumber’s work floods the building, guess who gets sued? You and the plumber.

When the electrician’s work causes a fire, guess who gets sued? You and the electrician.

When the roofer’s work leaks and damages the interior, guess who gets sued? You, the roofer, and probably the architect too.

You get to defend against every claim, even when it wasn’t your fault.

The “Wrap-Up” Problem Most GCs Don’t Understand:

On big projects, sometimes the owner buys a “wrap-up” policy that covers everyone.

Sounds great, right? One policy covers all the contractors.

Except wrap-up policies have gaps. And exclusions. And limitations.

When something isn’t covered by the wrap-up, guess who’s responsible? The GC.

You need your own coverage even on wrap-up projects.

Why Your Subcontractor’s Insurance Isn’t Enough:

Your subs are supposed to have insurance. They’re supposed to name you as additional insured.

But what happens when:

  • Their policy lapses and they don’t tell you?
  • Their coverage limits are too low for the actual damages?
  • Their policy excludes the specific thing that went wrong?
  • They go out of business and disappear?

You’re still the GC. You’re still responsible. You still get sued.

The Certificate of Insurance Game:

You collect certificates from all your subs. You think you’re protected.

Certificates are just pieces of paper. They don’t guarantee coverage.

They don’t tell you about exclusions, conditions, or whether the policy is actually in force.

When claim time comes, you find out what the policies actually cover. Sometimes it’s not what you expected.

What Happens When You’re Underinsured:

Let’s say you’re building a $2 million office building. Your crew accidentally damages the main electrical system.

The building loses power for a week. The tenant loses $500K in business income.

They sue you for the lost income plus punitive damages. Total claim: $1.2 million.

Your $1 million GL policy pays its limit and taps out. You’re personally liable for the remaining $200K.

Plus your own legal fees. Plus the cost to actually fix the electrical system.

That “adequate” insurance just became inadequate real fast.

Why “I’ve Never Been Sued” Doesn’t Matter:

Congratulations. You’ve been lucky so far.

But the construction industry is changing. Clients are more litigious. Lawyers are more aggressive.

Building codes are more complex. Projects are more complicated. Stakes are higher.

The GC who’s never been sued is like the driver who’s never had an accident. It’s great until it’s not.

What Proper GC Insurance Actually Costs:

Less than you think for basic coverage. More than you want to pay for comprehensive coverage.

But here’s the thing: One lawsuit can cost more than 20 years of insurance premiums.

Most GCs spend more on truck payments than they do on insurance. That’s backwards.

Your truck depreciates every year. Your insurance protects everything you’ve built.

What a Comprehensive Quote Will Show You:

Where your current coverage has gaps - Every GC has them. Every single one.

What limits actually make sense - Based on your project sizes and asset exposure.

How to structure coverage efficiently - Some coverages work better together than separately.

What your real risk exposure looks like - Most GCs underestimate this significantly.

How to transfer risk through contracts - Insurance is just one part of risk management.

What Happens If You Don’t Fix Your Coverage:

You’ll probably be fine most of the time. Most projects finish without major claims.

But when something does go wrong, you’ll find out exactly where your coverage gaps are.

You’ll pay lawyers, settlements, and damages out of your business and personal assets.

You might lose everything you’ve worked for because you tried to save money on insurance.

What Happens If You Do Get Proper Coverage:

You’ll sleep better knowing you’re actually protected, not just “covered.”

When claims happen, you’ll have coverage instead of panic.

You’ll be able to bid larger projects that require higher insurance limits.

You’ll protect your business assets and personal assets from catastrophic losses.

The Real Cost of Being Wrong:

Here’s what most GCs don’t think about:

You’re three months into a $5 million hospital project. A fire starts in your temporary construction office and spreads to the main building.

The hospital is shut down for six months while they rebuild the damaged sections.

They sue you for $20 million in lost revenue, plus the cost to rebuild, plus punitive damages.

Your $2 million GL policy pays its limit. You’re personally liable for the rest.

Your business gets seized. Your house gets seized. Your retirement accounts get seized.

That extra $3,000 per year for proper coverage doesn’t look so expensive when you’re losing everything.

What to Do Next:

Ready to find out where you actually stand? Fill out the form below.

I’ll need your current policies, typical project sizes, and what assets you’re trying to protect.

Then I’ll show you exactly where your gaps are and what it costs to fix them.

No pressure, no sales pitch. Just information so you can make an informed decision.

Think you’re already properly covered? Great. Let’s verify that with a comprehensive review.

[Get Your GC Insurance Review - Know Where You Actually Stand]

P.S. The most dangerous words in construction are “we’ve always done it this way.” That applies to insurance too. What worked 10 years ago doesn’t work today.

P.P.S. If you’re still reading this and you’ve ever wondered what would happen if you faced a lawsuit bigger than your current insurance limits, you need to fill out that form.

P.P.P.S. The GCs who think they have great insurance are often the ones with the biggest gaps. The ones who worry about their coverage usually have it figured out pretty well. Which one are you?