Texas Contractor Resources

What Does GL Actually Cover?

General liability is the most common policy contractors carry — and the most misunderstood. Here’s a plain-English breakdown.

GL covers third-party claims — meaning claims made against you by someone else. It does not cover your own injuries, your own tools, or your own mistakes if no third party is harmed. Understanding this distinction saves a lot of confusion at claim time.

The 3 Core Coverages

Bodily Injury

Someone is injured on your job site or as a result of your work. GL pays their medical costs, lost wages, and legal defense if they sue.

Property Damage

You or your crew damages someone else’s property while working. GL pays to repair or replace it — and covers legal costs if they sue.

Personal & Advertising Injury

Covers claims of libel, slander, copyright infringement, or false advertising. Less common for contractors but included in most GL policies.

Products & Completed Operations

Covers claims that arise after your work is finished — if someone is injured or property is damaged because of something you built or installed.

What GL Covers — Real Contractor Scenarios

✅ Covered

A visitor trips over your tools and breaks their wrist — GL covers their medical bills and your defense costs
Your crew accidentally breaks a client’s window while working — GL covers the repair
A homeowner sues you 18 months after job completion claiming your work caused water damage — GL (completed ops) responds
A passerby is hit by debris from your job site — GL covers the injury claim

What GL Does NOT Cover

🚫 Not Covered

Your own injuries — that’s Workers’ Comp or a health policy
Your tools and equipment — that’s Inland Marine / Tools & Equipment coverage
Your work trucks — that’s Commercial Auto
Faulty workmanship on the work itself — GL covers damage your work causes, not the cost to redo the work
Professional errors and advice — that’s E&O / Professional Liability
Intentional acts — no coverage for deliberate damage or harm
Pollution / chemical exposure — requires a separate pollution liability endorsement
Employee injuries — covered under WC, not GL

The faulty workmanship trap: GL will not pay to redo your work if it’s done wrong. It will pay for damage that bad work causes to other property. Example: bad plumbing that floods a customer’s hardwood floors — GL covers the floors, not the replumbing.

Standard GL Limits for Texas Contractors

Most contractor GL policies are written at $1M per occurrence / $2M aggregate. This means:

$1M per occurrence — maximum the policy pays for any single claim
$2M aggregate — maximum total paid across all claims in the policy year

Many GCs and project owners require a minimum of $1M/$2M. For larger projects or higher-risk trades, $2M/$4M is common. If your contract requires higher limits, ask about an umbrella policy.

Products & Completed Operations matters more than most contractors realize. This is the coverage that protects you after a job is done. A claim can come in months or years later — make sure your policy renews continuously and doesn’t lapse between jobs.

What You Probably Also Need

GL is the foundation — but most contractors need at least a few more coverage lines:

Workers’ Comp — if you have employees (and sometimes even if you don’t)
Commercial Auto — if you drive a vehicle for work, personal auto won’t cover a work-related accident
Tools & Equipment — GL won’t replace your stolen or damaged gear
Umbrella — adds excess limits above GL and Auto for larger claims

Ready to get your GL in place?

Check eligibility for an online quote or talk to a specialist about your full coverage picture.

Check Online Quote Eligibility Call 210-640-7050