What Are the Insurance Requirements for General Contractors in Georgia?

Navigating the insurance landscape is crucial for general contractors in Georgia. Understanding the state's specific insurance requirements ensures compliance and safeguards your business against potential risks. In this blog, we'll outline the essential insurance policies you need to operate legally and protect your contracting business in Georgia.

General Liability Insurance

General contractors in Georgia are required to carry general liability insurance with minimum coverage limits based on their license type:

• Residential Basic: $300,000 per occurrence
• Residential Light Commercial: $500,000 per occurrence
• Commercial General Contractor: $500,000 per occurrence
• Commercial General Contractor Limited Tier: $500,000 per occurrence

This coverage protects against claims of property damage or bodily injury arising from your business operations. Without it, a single claim could pose a severe financial burden on your company.

Workers’ Compensation Insurance

Georgia law mandates that businesses with three or more employees carry workers’ compensation insurance. This policy covers medical expenses and lost wages for employees who suffer job-related injuries or illnesses. Even if you have fewer than three employees, obtaining this coverage is advisable to protect both your workers and your business. To estimate your costs, use our Workers' Compensation Insurance Calculator.

For more information on workers’ comp exemptions, check out An Employer’s Guide to Workers Comp Exemptions.

Surety Bond Requirements

General contractors in Georgia must also obtain a surety bond, particularly if they work on public projects. This bond ensures that the contractor fulfills contractual obligations and provides financial protection to clients in case of default or poor workmanship.

Commercial Auto Insurance

If your business uses vehicles for transporting tools, equipment, or employees to job sites, commercial auto insurance is essential. Personal auto policies typically do not cover business-related incidents, so having proper commercial coverage ensures that your company vehicles are protected against accidents and liabilities.

Additional Coverage Options

While not always required, general contractors should consider the following additional insurance policies:

• Professional Liability Insurance: Protects against claims of errors or negligence in your professional services.
• Builder’s Risk Insurance: Covers damages to a construction site while a project is underway.
• Equipment and Tool Insurance: Protects valuable tools and machinery from theft or damage.
• Umbrella Insurance: Provides additional liability protection beyond standard policy limits.

Why You Need an Experienced Insurance Broker

Navigating the complexities of contractor insurance can be overwhelming. Working with an experienced insurance broker who specializes in general contractors' insurance ensures that your coverage is tailored to your business needs. If you're considering switching brokers, check out our guide on How to Change Insurance Brokers.

Get a Free Policy Review

If you haven't reviewed your insurance policy in the past year, now is the time. A single oversight could leave your business vulnerable to financial risk. BIS Benefits offers comprehensive policy reviews for general contractors to ensure you have the right coverage at the best possible rates.

Contact us today to discuss your general contractor insurance requirements in Georgia and protect your business from potential liabilities.