What general liability insurance does not cover for contractors

What general liability is built for

General liability, often called GL or CGL, generally covers third-party bodily injury and property damage that comes from your work and operations. A homeowner trips over your cord and breaks a wrist. Your crew cracks a neighbor's window. A pipe you installed leaks after the job and ruins a floor. Those are the kinds of claims GL is for.

Completed operations coverage, when the policy includes it, extends that protection to claims that show up after you finish the job. Many GCs require it.

The key word is third party. GL pays for harm to other people and their property. It is not built to pay for your own people, your own gear, or the cost of fixing your own work.

Four things GL does not cover

• Your own workers. If an employee gets hurt on the job, that is workers' comp, not GL. California requires every licensee to file a workers' comp certificate or an exemption with CSLB, and some classes must carry it even with no employees. See the California contractor workers' comp guide.
• Your tools and equipment. A stolen compressor or a ladder that falls off the truck is not a GL claim. Tools and equipment are insured separately.
• Your vehicles. Accidents in your work truck or van fall under commercial auto. Personal auto policies often exclude business use, so check yours.
• Faulty workmanship itself. If you install something wrong, GL does not pay to tear it out and redo it. It may respond to damage your bad work causes to other property, such as water damage from a leak, within the policy terms.

Workers' comp, commercial auto, umbrella and bonds are handled by phone with a licensed agent at (877) 940-4313.

Common contractor exclusions to read for in a quote

Beyond the basics, contractor GL policies can carry exclusions or limits that depend on the program and the trade. These are general things to read for, not a list of what any one policy says:

• Prior work. Some policies exclude claims from work you did before the policy started.
• Earth movement and subsidence. Settling, sinking or shifting soil. Watch for this in concrete, foundation and grading work.
• Height limits. Some policies exclude work above a set number of stories or feet. Roofers and framers should read this closely.
• Tract and new residential. Work on new homes, tract housing or condos can be limited or excluded.
• Uninsured subcontractors. Many policies require your subs to carry their own GL and name you as additional insured. If they do not, claims from their work may not be covered.
• Mold and water. Mold, fungi and some water damage are often excluded or limited.
• Pollution. Fumes, dust, chemicals and other pollutants are usually excluded unless the policy adds them back.
• Contractual liability limits. If your contract makes you responsible for someone else's liability, the policy may only cover part of what you agreed to.

None of these are automatic. They vary by program, and the only way to know is to read the quote.

Why exclusions matter to your GC and your contracts

Your contract may require coverage that an exclusion takes away. A GC who builds new homes needs a sub whose policy does not exclude new residential work. A GC who asks for additional insured status on completed operations needs a policy that includes it.

When an exclusion lines up with your real work, a claim can come back denied even though you had a policy and a certificate. That is why it pays to match the exclusions to the jobs you actually do, not just the limits.

Read more on what GCs ask for on the certificate of insurance guide.

See included and excluded items before you pick

Aster's quote board shows each quote's included and excluded items side by side, along with the deductible and limits. You see what each A-rated program leaves out before you choose one.

1. Enter your CSLB license number and answer about a minute of questions about your trade, your work and your crew.
2. Quotes from multiple A-rated programs arrive one by one on your board.
3. Compare what each one includes and excludes, then tap "Submit for approval" on the one that fits.
4. A licensed agent handles it and emails you the final quote to sign. Nothing is bound until you sign.

Exclusions also affect price. See what drives your GL price, or find your trade on the insurance by trade page, including roofing and concrete.