As an independent contractor, your expertise fuels your business—but your insurance should protect it. General Liability (GL) insurance offers essential safeguards, yet many contractors overlook its value. Here’s why GL matters for tradespeople, consultants, freelancers, and more—and how our agency ensures you get ideal protection.
1. What General Liability Covers
Third-Party Bodily Injury: Covers medical costs if someone is injured by your work.
Property Damage: Protects you if you accidentally damage a client’s property.
Personal & Advertising Injury: Includes claims like defamation or copyright violation.
Legal Defense Costs: Covers attorney fees—even frivolous lawsuits.
GL insurance covers most on-site and off-site incidents related to your services.
2. Why Contractors Need GL Insurance
Client Requirements: Many contracts, especially with businesses or suppliers, mandate proof of insurance.
DIY Business Owners Risk Vulnerability: Unexpected accidents—like a plumbing leak or falling material—can lead to costly claims.
Professional Appearance: Having insurance shows clients you’re responsible and reliable.
3. Common GL Exclusions—And What You Should Add
General Liability doesn’t cover everything. Consider adding:
Professional Liability (E&O): Protects against mistakes in your services or advice.
Commercial Auto: Covers work vehicles—GL doesn’t cover auto-related incidents.
Tools & Equipment: Use Inland Marine Insurance to cover stolen or damaged tools.
Workers’ Compensation: Protects if you hire subcontractors or assistants.
Umbrella Coverage: Adds extra liability protection above the GL limits.
4. How to Choose the Right GL Policy
Define Your Scope of Work: e.g., plumbing, consulting, delivery etc.
Assess Your Risk: Consider client site conditions, subcontractor work, and auto usage.
Choose Appropriate Limits: Most contractors select $1M per incident/$2M aggregate, but complex jobs may need more.
Add Relevant Endorsements: Photo coverage, pollution liability, additional insureds, etc.
Bundle Wisely: Bundling GL with Professional Liability or Commercial Auto can reduce costs and simplify management.
5. How We Support Independent Contractors
At THAgency, we specialize in contractor needs. Here’s what we offer:
Tailored bundles covering GL, E&O, commercial auto, equipment, and umbrella
Quotes from nearly 100 top insurers to find competitive rates
Guidance on required coverage for client contracts and licensing bodies
Ongoing support and annual policy reviews as your business evolves
Final Takeaway
General Liability insurance is non-negotiable for independent contractors: it protects your reputation, income, and legal standing. Don’t risk losing clients or your business over a preventable claim—build a robust, customized insurance package that grows with you.
Ready to Secure Your Business?
Get a free, customized insurance quote today. We’ll assess your field, select the perfect coverage bundle, and connect you with reliable options—so you can focus on your work with confidence.
