🛡️ Why You Need General Liability Insurance in Construction
🧱 Introduction
In the construction industry, risk is part of the job — but financial loss doesn’t have to be.
Whether it’s a cracked window, property damage, or a client injury, one unexpected incident can turn into a costly claim. That’s why General Liability Insurance (GLI) is one of the most important protections for both contractors and homeowners.
At Nail & Hammer Construction Corp, we carry comprehensive liability coverage to safeguard our clients, our crews, and every project we take on.
Here’s what every contractor — and homeowner — should know about this essential form of protection.
🧾 Coverage Overview and Real-Life Examples
General liability insurance covers property damage, bodily injury, and legal defense costs resulting from accidents or negligence on the jobsite.
🔹 What It Covers
Property Damage: If a worker accidentally breaks a window, floods a room, or damages an adjacent property.
Bodily Injury: If a client or visitor slips, trips, or is injured during construction.
Completed Operations: Covers issues arising after a project is finished, such as a leak from improper installation.
Legal Defense Costs: Even if a claim is dismissed, legal representation fees are covered.
🔹 Real-Life Examples
A subcontractor accidentally cuts into a water main — flooding the client’s garage.
A visitor walks onto the jobsite, trips over loose debris, and gets injured.
Months after a remodel, a faulty pipe connection causes ceiling damage.
Without liability coverage, each of these situations could result in thousands in out-of-pocket costs or lawsuits.
💡 Pro Tip: Even small contractors and handymen are legally exposed — many homeowner policies exclude damage caused by unlicensed or uninsured workers.
🤝 How It Protects Clients and Contractors
General liability insurance doesn’t just protect the contractor — it builds trust and peace of mind for the client.
🔹 For Contractors
Protects business assets from lawsuits or claims.
Makes your company eligible for larger contracts.
Required for most city permits and commercial projects.
Covers incidents involving subcontractors or third parties.
🔹 For Homeowners and Clients
Ensures financial protection if something goes wrong on-site.
Verifies the contractor’s professionalism and responsibility.
Prevents disputes from escalating into costly litigation.
💡 Pro Tip: Always request a Certificate of Insurance (COI) before work begins — it confirms that the contractor’s coverage is current and active.
⚖️ What Limits Are Required by Law
In California, the Contractors State License Board (CSLB) requires licensed contractors to carry a $25,000 bond, but general liability insurance is not technically mandatory — it’s just smart business.
However, many municipalities, developers, and commercial clients require proof of liability coverage before issuing permits or approving bids.
🔹 Typical Coverage Requirements
Residential Projects: $1 million per occurrence / $2 million aggregate
Commercial Projects: $2 million per occurrence / $4 million aggregate
Government or Public Works: May require higher limits or umbrella policies
💡 Pro Tip: Even if not legally required, maintaining $1–2 million in coverage is standard in the Los Angeles market — protecting both your company and your reputation.
🧰 Nail & Hammer’s Commitment to Client Protection
At Nail & Hammer Construction Corp, we maintain full general liability coverage along with worker’s compensation and bonding — ensuring that every client, property, and project is protected.
Our commitment goes beyond compliance — it’s about accountability, transparency, and professionalism on every jobsite.
We’re proud to provide clients with proof of insurance, clear documentation, and peace of mind before any work begins.
âś… Conclusion
Construction comes with risks, but with proper coverage, you can build confidently.
General liability insurance protects both contractors and clients from unexpected losses — keeping projects on track and relationships secure.
At Nail & Hammer Construction Corp, we believe safety and professionalism go hand in hand. From insurance to craftsmanship, we build every project with integrity and protection at its core.
đź“ž Call 424-800-3704 today to learn more about our licensed, bonded, and insured construction services across Los Angeles.
