What is the maximum amount typically covered under contractor insurance policies for general liability?

The maximum amount typically covered under contractor insurance policies for general liability is often around $1,000,000. This coverage is designed to protect contractors from claims related to bodily injury, property damage, and other liabilities that can arise during the execution of construction work. The figure of $1,000,000 is standard in many instances because it strikes a balance between providing adequate coverage and maintaining affordable premiums for contractors.

Additionally, this amount is generally accepted within the industry, making it a practical choice for most contractors. While higher coverage limits, such as $2,000,000, may be available or required for specific projects, $1,000,000 remains the baseline for many general liability policies to ensure adequate coverage against the most common risks faced by contractors. Coverage limitations can vary significantly depending on various factors, including the specific needs of a contractor and the nature of their projects, which may lead some to opt for customized or higher coverage amounts. However, the standard practice aligns closely with the $1,000,000 figure.