Renovation work may not come with cranes and skyscraper scaffolding, but make no mistake — remodeling contractors face their fair share of liability landmines. From a misstep that cracks a marble floor to a client’s toddler tripping over a toolbag, the risks are real and often underestimated. That’s why securing proper contractor general liability insurance is a must. For brokers advising contractor clients, understanding and explaining these risks can be the difference between a claim denied and a client protected.
Why Liability Exposure Is So High in Remodeling
Residential remodeling brings contractors face-to-face with tight spaces, delicate finishes, and even homeowners, who often continue living on-site during a renovation. Unlike new builds, remodels typically take place in occupied homes where any mishap can turn into a costly claim.
- Lived-in job sites mean obstacles: With homeowners present, there’s a greater chance of someone getting hurt. Picture a client stepping over paint cans in socks — it doesn’t take much for a twisted ankle to become a lawsuit.
- Expensive finishes and fixtures: A dropped drill that scratches hardwood floors or a busted pipe that ruins a new vanity can trigger thousands in property damage claims.
- Environmental concerns: Dust infiltration, mold from water leaks, or poor containment practices can lead to both health complaints and remediation demands.
- Higher costs: The higher cost of today’s remodeling materials further complicates matters. Whether restoring hardwood flooring in a home office or installing custom cabinetry in a partitioned kitchen, remodelers face environments where one slip-up can be costly.
What General Liability Insurance Covers
General liability insurance is the financial safety net that covers the most common (and most expensive) pitfalls of remodeling projects. The right coverage may handle:
- Third-party bodily injury claims, like when a client slips on a tarp or a visitor trips over lumber
- Property damage, including accidental harm to the home, its contents, or neighboring units
- Legal defense costs — because even baseless claims cost money to fight
A common question brokers hear is, “Does general liability cover workmanship?” The short answer is no. Faulty workmanship typically falls under warranty or requires separate endorsements, such as contractors errors and omissions (E&O) insurance. General liability is designed to cover accidents, not craftsmanship failures.
Common Claims Brokers Should Warn Contractors About
Remodelers can face serious liability risks without knowing it. Here are some real-world examples brokers should be ready to discuss:
- Trip-and-fall incidents from tools or cords left in walking paths
- Water damage caused by improper sink or toilet installations
- Damage to finishes like countertops, flooring, or cabinetry during demolition or install
- Neighboring unit claims in townhomes or condos, where a mishap can affect adjacent properties
Being proactive about these scenarios helps contractors better appreciate the role of general liability coverage and reinforces your expertise as their broker.
Helping Contractors Understand the Value of Liability Coverage
Some contractors still view general liability coverage as just another line item on a bid sheet. Brokers can help shift that perspective by highlighting:
- Client-mandated insurance requirements, especially for larger jobs or those involving property managers
- Proof of professionalism, with certificates of insurance that position them as reliable and prepared
- Better risk conversations, giving brokers a competitive advantage by educating clients, not just quoting them
For more insights into current market shifts, read Commodore’s analysis of contractor insurance trends for 2025.
Get in Touch With Commodore
Commodore Insurance specializes in providing contractor general liability insurance tailored to the needs of remodeling professionals. Our expertise helps brokers simplify complex exposures and deliver reliable solutions.
Contact us today to learn how we can support your clients and your book of business.
About Commodore
Commodore Insurance Services, Inc. (Commodore) is a California corporation that operates as a Managing General Agency and Program Manager. Since incorporating in 1990, Commodore has developed an expertise in the production and underwriting of insurance products for businesses across the West Coast. Our focus is on providing top-level insurance products to our clients while striving to make it easy to do business for our brokers. Try us and find out why we have continued to be successful for more than 27 years and are recognized as the trusted leader in small business insurance.
