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.
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