How Much is General Liability Insurance for Construction Companies?

How Much is General Liability Insurance for Construction Companies?

Coastal Oak Insurance - General Liability Insurance for ConstructionIn the state of California, thousands of construction projects are taking place. The state is seeing significant growth in building development, with contractors and subcontractors stimulating the economy post-pandemic. Construction companies face significant and varied risks in their operations, necessitating the protection of CA contractor insurance. Of the contractor insurance products available, general liability insurance (GL!) is a foundational coverage option. How much is GLI for construction companies, and what do these policies cover? In this guide, we will explore CA contractor insurance to help answer those questions.

General Liability Insurance for Contractors

General liability insurance (GLI) is used by many industries as the backbone of a more comprehensive risk management program. Construction companies, in particular, rely on the robust protections afforded by this insurance. GLI is only one of several policy types available in the broader CA contractor insurance family. Other types of insurance include:

  • Commercial Auto/Business Vehicle Insurance
  • Contractor License Bonds/Surety Bonds
  • Workers’ Compensation Insurance
  • Pollution Liability Insurance
  • Umbrella or Excess Insurance
  • Professional Liability Insurance


GLI policies are the most familiar to many contractors. These policies are designed to provide robust protection against common liability exposures like property damage, injuries on the construction site, and even reputational harm or advertising injury. Sometimes referred to as a contractors general liability policy, this insurance also typically covers legal expenses associated with third-party claims against the company.

Is CA Contractor Insurance Required?

In the state of California, contractors are not required to obtain general liability insurance to maintain business licensure. Other states may require this, however. More importantly, contractors in California may be required to carry a GLI policy as part of a contractual agreement with another entity, such as a municipal government, private organization, or individual. Contractors must provide proof of insurance with a Certificate of Coverage, in order to win building contracts.

Although there are no government requirements for GLI, except in certain cases, CA contractor insurance is a vital part of risk management for construction companies. Without this insurance, a contractor may face out of pocket expenses if a person were to be injured on a construction site or if property were damaged. Facing these potential expenses, the cost of CA contractor insurance serves to provide peace of mind, protecting businesses from financial losses associated with third-party claims.

About Coastal Oak Insurance Services

At Coastal Oak Insurance Services, we strive to protect your personal and business assets from coast to coast. When you work with us, you’re family. Contact us today at (949) 519-3738 to learn more about how we can provide you with comprehensive and tailored insurance coverage.

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