As a contractor in Round Rock, Pflugerville, Hutto, or anywhere in Central Texas, your work involves risk—from jobsite injuries and property damage to legal claims and unhappy clients. That’s where general liability insurance comes in.
It’s not just a good idea—it’s often a requirement. Cities, commercial clients, and even homeowners often won’t hire a contractor who isn’t insured.
But what does general liability insurance actually cover? And how does it protect your business?
In this guide, Safe Beacon Insurance walks you through everything contractors need to know.
What Is General Liability Insurance?
General liability insurance (GL) is a foundational business policy that protects you from third-party claims of:
- Bodily injury
- Property damage
- Personal and advertising injury
It’s designed to cover legal fees, settlements, judgments, and medical expenses resulting from claims against your business.
If you:
- Knock over a client’s fence
- A customer trips over your tools
- Someone sues for false advertising or defamation
—GL coverage steps in.
What Does General Liability Cover for Contractors?
1. Bodily Injury to Others
If a third party (not an employee) gets hurt on a jobsite or due to your work, your policy helps cover medical bills, legal costs, and settlements.
Example: A homeowner trips on loose materials left on a sidewalk while your crew is remodeling their kitchen.
2. Property Damage to Others
Accidents happen. If your work damages someone else’s property, your policy can pay for repairs or replacement.
Example: You’re installing kitchen cabinets and drill into a water pipe, flooding the client’s home.
3. Personal and Advertising Injury
Covers claims like libel, slander, false advertising, copyright infringement, or wrongful eviction.
Example: A competitor claims your Google Ads falsely accuse them of poor workmanship.
4. Legal Fees and Defense Costs
Even if you’re not at fault, defending yourself in court can get expensive. GL helps cover attorney fees and court costs.
Example: A client sues you over an accident that wasn’t your fault, but you still need a lawyer to defend the case.
5. Medical Payments (Without Lawsuit)
Some GL policies include a smaller coverage for minor injuries that happen to third parties, regardless of fault.
Example: A delivery person slips on your freshly mopped job trailer floor and sprains an ankle.
What General Liability Does NOT Cover
Knowing what’s excluded is just as important. Here are common gaps that require separate policies:
1. Damage to Your Own Work or Tools
GL doesn’t cover poor workmanship or your tools/equipment. That’s where contractor’s equipment coverage or builder’s risk comes in.
2. Injuries to Employees
Employee injuries fall under workers’ compensation, not general liability.
3. Professional Mistakes
If you provide plans, consulting, or design advice, GL won’t cover errors in judgment. You’ll need professional liability (E&O).
4. Auto Accidents
Driving to jobsites? Accidents involving company vehicles are covered under commercial auto insurance, not GL.
5. Intentional Damage or Fraud
No policy will protect you if you or your team intentionally damage something or act dishonestly.
Local Requirements in Round Rock and Surrounding Areas
Many Central Texas cities require proof of general liability insurance before you can:
- Pull a permit
- Bid on city work
- Renew or apply for a contractor license
For example, Round Rock and Austin may require:
- Minimum coverage limits (e.g., $500,000–$1,000,000 per occurrence)
- A certificate of insurance naming the city as additional insured
Having proper GL coverage not only protects your business—it keeps you eligible for the jobs that grow your business.
How Much Does General Liability Cost in Texas?
Rates vary based on:
- Trade (electricians usually pay less than roofers)
- Payroll and revenue
- Number of employees
- Claims history
- Desired coverage limits
Average Costs:
- Handyman: $400–$700/year
- Electrician: $600–$900/year
- Roofer: $2,000–$5,000/year
Ask us for a personalized quote—many Round Rock contractors are surprised how affordable good coverage can be.
Why Contractors Can’t Afford to Skip General Liability
Aside from legal and client requirements, having GL protects your business from unexpected events that could bankrupt it.
Real Scenarios We’ve Seen:
- A fence contractor drills into a buried electrical line: $12,000 claim
- A remodeler leaves a door open—client’s dog runs out and is hit by a car: $7,500 claim
- An HVAC installer drops a tool from a ladder, injuring a bystander: $18,000 claim
One incident can wipe out your savings—or worse, your business.
Tips to Lower Your Risk and Premium
Want to keep your rates low? Here’s how:
1. Train Your Crew
Toolbox talks, safety briefings, and clear jobsite rules reduce accidents.
2. Document Everything
Take photos, get sign-offs, and keep detailed contracts. If a claim arises, documentation helps your case.
3. Bundle Your Policies
Combining GL with workers’ comp, commercial auto, or inland marine can get you discounts.
4. Work With Local Experts
We know what cities like Round Rock, Hutto, and Georgetown require—so we get it right the first time.
How to Get General Liability Insurance in Round Rock, TX
At Safe Beacon Insurance, we make it easy:
- Quick call or email to gather your info
- We shop multiple A-rated carriers
- You get quotes in plain language—no jargon
- We issue your Certificate of Insurance (COI) fast
We know time is money, especially in construction. That’s why we keep things simple and efficient.
Final Thoughts: Protect Your Business and Grow with Confidence
Contractors are builders, problem-solvers, and risk-takers. But no matter how careful you are, things can go wrong.
Having the right general liability coverage gives you peace of mind to:
- Bid bigger jobs
- Work with confidence
- Sleep better at night
At Safe Beacon Insurance in Round Rock, TX, we’re proud to help local contractors stay protected, competitive, and ready for whatever the next job brings.
Let’s get your business covered the right way.
Call Safe Beacon Insurance in Round Rock, TX today.
Phone: (512) 535-1918
Email: info@safebeaconinsurance.com
Website: https://www.safebeaconinsurance.com