General Liability Insurance: The Foundation of Your Georgia Construction Business
Part of our guide to general contractors insurance in Georgia.
You need General Liability Insurance to operate a general contracting business in Georgia. This foundational policy covers third-party bodily injury, property damage, and advertising injury claims. In Georgia's risk environment, with tornadoes in the north and hurricanes in the southeast, General Liability is crucial. You'll typically pay $40-$110/month, varying by revenue, payroll, and coverage limits. General Liability is often required by commercial clients, real estate developers, and lenders, who demand at least $1 million in coverage. Without it, you risk losing contracts and facing financial devastation.
General Liability cost for general contractors in Georgia
Illustrative monthly general liability estimate for a small general contractor operation in Georgia. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What General Liability Covers for General Contractors in Georgia
General Liability Insurance pays for third-party bodily injury, property damage, and advertising injury claims. For example, if a client slips on a wet floor at your Atlanta office, General Liability covers their medical expenses. It also handles property damage claims, such as when your equipment damages a client's property in Augusta. However, General Liability does not cover workers' compensation claims, which are handled by a separate policy. Additionally, it does not cover professional liability claims, such as negligence or misrepresentation, which are covered by an Errors and Omissions policy. You need General Liability to protect your business from these common claims.
Do General Contractors in Georgia Need General Liability?
While General Liability is not legally required for general contractors in Georgia, it is often contractually required by commercial clients, real estate developers, and lenders. Nearly every commercial client, real estate developer, and lender requires general contractors to carry at least $1 million in General Liability and workers' compensation insurance as a condition of signing any construction contract. Without General Liability, you risk losing contracts and facing financial devastation. In Georgia's competitive construction market, having General Liability Insurance is essential to securing contracts and protecting your business. You should carry General Liability to meet client requirements and protect your assets.
A Real General Liability Claim a General Contractor Could Face
On a humid morning in Atlanta, a general contractor's employee accidentally damages a client's property while working on a construction site. The client suffers $10,000 in property damage and files a claim against the general contractor. The general contractor's General Liability Insurance policy pays for the damage, covering the $10,000 claim. The policy also covers the general contractor's legal fees, totaling $5,000. Without General Liability Insurance, the general contractor would have been personally responsible for the $15,000 in damages and legal fees. General Liability Insurance protected the general contractor's business from financial devastation.
What General Liability Costs for General Contractors in Georgia
The cost of General Liability Insurance for general contractors in Georgia varies, but you can expect to pay $40-$110/month. The premium depends on factors such as your revenue, payroll, coverage limits, deductible, and claims history. In Georgia, the risk of tornadoes in the north and hurricanes in the southeast can increase your premium. For example, a general contractor in Savannah may pay a higher premium due to the increased risk of hurricane-related claims. You can lower your premium by increasing your deductible, improving your safety record, and bundling General Liability with other policies. By shopping around and comparing quotes, you can find the best rate for your General Liability Insurance.
How to Get General Liability in Georgia
To get General Liability Insurance in Georgia, you should gather your business information, including revenue, payroll, and coverage limits. You should also research insurance providers and compare quotes to find the best rate. Consider bundling General Liability with other policies, such as workers' compensation and commercial auto, to lower your total premium. In Atlanta, you can find insurance providers who offer General Liability Insurance specifically designed for general contractors. By bundling your policies, you can often lower your total premium and protect your business from various risks. Get your quote today and protect your general contracting business in Georgia.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes. A claim can increase your premium. However, the amount of the increase depends on the severity of the claim and your overall claims history. If you have a history of frequent or severe claims, your premium may increase more significantly. On the other hand, if you have a single minor claim, the impact on your premium may be minimal. You should discuss your claims history with your insurance provider to understand how it affects your premium.
Can I get a COI same-day for a client?＋
Yes. Many insurance providers offer same-day certificates of insurance. You should contact your insurance provider to request a COI, and they will typically provide it within a few hours. Some providers may offer online platforms where you can generate a COI instantly. However, you should ensure that your insurance policy is active and up-to-date before requesting a COI. You should also verify that the COI meets your client's requirements, including the coverage limits and policy terms.
Does a sole proprietor need General Liability?＋
Yes. As a sole proprietor, you are personally responsible for your business's liabilities. General Liability Insurance protects your personal assets from third-party claims. Even if you don't have employees, you can still be held liable for damages or injuries caused by your business operations. You should consider carrying General Liability Insurance to protect your personal assets and business reputation. You can often bundle General Liability with other policies, such as professional liability insurance, to provide comprehensive protection for your sole proprietorship.
What's not covered by General Liability?＋
General Liability does not cover workers' compensation claims, professional liability claims, or intentional acts. Workers' compensation claims are handled by a separate policy, while professional liability claims are covered by an Errors and Omissions policy. Intentional acts, such as fraud or intentional damage, are typically excluded from General Liability coverage. You should understand what is not covered by your General Liability policy to ensure you have adequate protection for your business. You may need to purchase additional policies to fill these coverage gaps.
Can I cancel my General Liability policy?＋
Yes. You can cancel your General Liability policy, but you should review your policy terms and conditions before doing so. You may be subject to cancellation fees or penalties, and you should ensure that you have alternative coverage in place to avoid gaps in protection. You should also consider the potential consequences of canceling your policy, such as losing contracts or facing financial devastation. You should discuss your options with your insurance provider to determine the best course of action for your business.
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Other coverages general contractors in Georgia should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Georgia change over time and vary by business. Verify current rules with the Georgia Department of Insurance and a licensed agent before purchasing a policy.