What does general liability insurance cover for contractors?

What Is Contractors Insurance?

Contractors insurance is a package of policies designed to protect construction and trade professionals from lawsuits, job site accidents, property damage, and financial losses.

Whether you’re a general contractor, electrician, plumber, roofer, or specialty trade, the right coverage ensures you meet contract requirements and protect your business assets.

Key Coverages for Contractors

General Liability Insurance

Covers third-party bodily injury, property damage, and legal defense costs arising from your operations. This is typically required by project owners and general contractors.

Workers’ Compensation Insurance

Required in Arizona if you have employees. Covers medical costs and lost wages if an employee is injured on the job.

Commercial Auto Insurance

Protects vehicles used to transport tools, materials, or employees to job sites.

Tools & Equipment Coverage

Covers theft, loss, or damage to tools and equipment whether on-site or in transit.

Professional Liability Insurance

Protects against claims related to design errors, advice, or alleged faulty workmanship.

Umbrella Liability

Adds additional protection above your primary policies for large claims.

How Much Does Contractors Insurance Cost in Arizona?

Premiums vary based on several factors, including your trade, payroll, revenue, and risk level.

Typical general liability ranges in Arizona often fall between:

• Handyman: ~$650–$1,000 annually

• Electricians: ~$850–$1,400

• General contractors: ~$2,000–$4,000+

• Roofing contractors: ~$3,500–$5,000+

Higher-risk trades or larger operations may require additional coverage and higher limits.

Who Needs Contractors Insurance?

We work with a wide range of construction professionals, including:

• General contractors

• Remodeling contractors

• Electricians

• Plumbers

• HVAC contractors

• Roofing contractors

• Drywall and framing contractors

• Specialty trades

Common Risks Contractors Face

Construction sites present many exposures, such as:

• Job site injuries

• Property damage to client locations

• Faulty workmanship allegations

• Equipment theft

• Vehicle accidents

• Contractual liability

Having the right coverage structure helps protect your business and maintain compliance with project requirements.

Why Contractors Choose Professional Insurance Strategies

As a Phoenix-based independent agency serving Arizona contractors since 2006, we understand the insurance requirements and challenges contractors face.

What makes us different:

• Access to 50+ insurance carriers

• Local expertise in Arizona construction risks

• Fast certificate turnaround

• Coverage tailored to your trade

• Competitive pricing through carrier comparison

Our goal is to help you protect your business while keeping insurance costs manageable.

Frequently Asked Questions

Do contractors need insurance in Arizona?

Most project owners and the Arizona Registrar of Contractors require proof of liability coverage, and workers comp is required if you have employees.

What limits should contractors carry?

Many contractors carry at least $1M per occurrence / $2M aggregate, often with an umbrella for larger projects.

Can subcontractors be covered?

Yes, but they typically must carry their own insurance and provide certificates to reduce your exposure.

Can policies be bundled?

Yes — bundling liability, auto, and equipment coverage often lowers premiums.

Get a Contractors Insurance Quote

If you’re a contractor in Phoenix, Glendale, Mesa, or anywhere in Arizona, our team can help you compare coverage options and design a program that fits your business.

Call 623-463-9000
 Request a quote online

Protect your business, win more bids, and meet contract requirements with confidence.