02 / Coverages
The coverage reference sheet
Twelve lines of commercial coverage in plain English: what each one pays for, who needs it and what contracts usually require.
| Coverage | What it pays for | Who needs it | Typical contract ask |
|---|---|---|---|
| General liabilityCGL | Injuries and property damage you cause to others, including after the job is finished. | Everyone | $1M / $2M aggregate |
| Workers' compWC and EL | Medical bills and lost wages for injured employees, plus employer's liability for related lawsuits. | Any employer | Statutory / $1M EL |
| Commercial autoCA | Accidents in vehicles the company owns, leases, hires or borrows. | FleetsContractors | $1M combined single limit |
| Umbrella and excessXS | Extra limits that sit above general liability, auto and employer's liability. | GCsFleetsDevelopers | $5M to $25M |
| Builder's riskBR | The structure and materials during construction: fire, storm, theft and vandalism. | DevelopersGCs | Full completed value |
| Tools and equipmentInland marine | Tools, machinery and equipment that move between job sites or sit on a trailer. | TradesGCs | Scheduled value |
| Professional liabilityE&O | Financial losses from design, engineering or consulting mistakes. | Design-buildEngineers | $1M to $5M |
| Pollution liabilityCPL | Cleanup and injury claims from mold, fuel, asbestos and dust. General liability excludes most of these. | TradesDevelopers | $1M to $5M |
| Product liabilityProducts and recall | Injuries and damage from products after they ship, plus recall costs when added. | Manufacturers | $2M products aggregate |
| Motor truck cargoMTC | Freight you haul for others, while it is loaded and in transit. | Haulers | $100K to $250K |
| Cyber and wire fraudCyber | Ransomware, data breach costs and payments sent to fake bank instructions. | Everyone | $1M, rising |
| Surety bondsBid, P&P | A guarantee to the owner that you will finish the job and pay your subs and suppliers. | Public workGCs | 100% of contract value |
General descriptions only. Each policy's terms, conditions and exclusions control the coverage. Contract requirements vary by owner and project.
B / Liability tower
How your liability limits stack
A $10 million requirement is rarely one policy. It is a tower: primary policies at the bottom, an umbrella above them and excess layers on top.
- Primary layer. General liability, auto and employer's liability each pay first, up to their own limits.
- Umbrella. Picks up where any primary policy stops, and often covers some claims the primary policies exclude.
- Excess layers. Add more limit in blocks. Each layer follows the terms of the policy beneath it.
C / Gap check
Which of these lines does your company need?
The gap check compares what you carry with what companies in your industry usually need. It takes about two minutes.