Commercial General Liability Insurance for Contractors
                     Commercial General Liability Insurance for Contractors: 
How to Protect Your Business Before Your Next Job
 Running a contracting business in the United States isn’t 
just about doing quality work—it’s about protecting 
everything you’ve built. One accident, one claim, or one 
lawsuit can derail years of hard work. That’s where 
Commercial General Liability (CGL) insurance 
becomes not just helpful, but essential.
 Whether you’re a general contractor, roofer, electrician, 
plumber, or subcontractor, understanding how CGL 
insurance works—and why it matters before your next job
—can mean the difference between staying in business 
and shutting your doors.
What Is Commercial General Liability Insurance?
Commercial General Liability insurance is designed to protect 
contractors from third-party claims involving:
• Bodily injury
• Property damage
• Personal and advertising injury
In plain terms, it covers situations where someone claims your 
business caused them harm or damage. If a client trips over 
materials at a job site or you accidentally damage a customer’s 
property, CGL insurance helps cover legal fees, medical costs, and 
settlements.
In today’s litigious environment, especially in the U.S., these claims 
can add up fast—often reaching tens or even hundreds of 
thousands of dollars.
Why Contractors Are Especially at Risk
Contracting is hands-on, physical, and often unpredictable. You’re 
working with tools, equipment, materials, and job sites that expose 
you to risk every single day.
Here are a few real-world scenarios contractors face regularly:
• A ladder falls and damages a homeowner’s vehicle
• A client slips and gets injured on a wet surface
• A subcontractor causes damage, but you’re held responsible
• A customer claims your work caused property damage weeks later
Without proper coverage, these claims come straight out of your 
pocket.
Why You Need Coverage Before Your Next Job
Many contractors assume insurance is something they can 
“handle later.” That’s a costly mistake.
Most jobs require proof of insurance
• General contractors often won’t hire uninsured subs
• Commercial clients typically require certificates of 
insurance
• Many contracts legally mandate CGL coverage
Claims don’t wait
Accidents don’t give warnings. If something happens before 
your policy is active, you’re exposed—no exceptions.
One claim can wipe out profits
Even a minor lawsuit can drain your cash flow, stall projects, 
and damage your reputation.
How Commercial General Liability Insurance Protects Your Business
CGL insurance does more than check a box—it gives you peace of 
mind.
It helps you:
• Cover legal defense costs
• Pay settlements or court judgments
• Protect business assets and personal finances
• Win better contracts and larger jobs
• Build trust with clients
Most importantly, it allows you to focus on your work instead of 
worrying about “what if.”
How Much Coverage Do Contractors Typically Need?
While coverage needs vary, many U.S. contractors carry:
• $1 million per occurrence
• $2 million aggregate
The right limits depend on:
• Your trade
• Job size
• Contract requirements
• State regulations
This is where working with an experienced insurance agency matters.
Don’t Start Your Next Job Unprotected
If you’re bidding on work, signing a new contract, or stepping 
onto a job site, now is the time to make sure your business is 
properly covered.
Commercial General Liability insurance isn’t optional—it’s 
essential.
Contact Bonano Insurance today to get a fast, no-obligation 
quote and make sure your business is protected before your 
next job begins.
Your business deserves protection. Let Bonano Insurance help 
you build with confidence.