Business Insurance for California Contractors & Construction

Operational exposures

• Third-party injury at active job sites
• Property damage caused by your work to a client's property
• Theft or loss of tools and equipment off-premises
• Employee injury from lifting, tools, and falls
• Completed-operations claims after a project is finished

Relevant coverage options

These coverages are commonly considered for this industry. Coverage depends on policy wording, exclusions, limits, and underwriting — no policy automatically covers every example below.

• General Liability — Third-party bodily injury, property damage, and advertising injury.
• Workers' Compensation — Statutory coverage for employees' on-the-job injuries and certain occupational disease.
• Inland Marine — Tools, equipment, and goods in transit or off-premises.
• Commercial Auto — Liability, physical damage, and coverage for business-use vehicles.
• Builders Risk — Property in the course of construction or renovation.
• Surety Bonds — Contract, license, and commercial surety bonds.

Common policy limitations

• General liability typically excludes damage to your own completed work, subject to a completed-operations exception period
• Inland marine covers only scheduled equipment; unscheduled tools may be uninsured
• Workers' compensation excludes independent contractors and non-work injuries

Information typically needed for a quote

• Type of contractor license and trades performed
• Annual payroll and subcontractor costs
• Equipment schedule and values
• Project sizes and contract requirements

A practical claim scenario

Situation: A subcontractor's tool causes a fire that damages the structure under construction.

How coverage may respond: General liability may address the property damage while builders risk may address the structure, but which policy responds depends on the contract and each policy's terms — coverage is never automatic.