Cleveland Contractors: Is Your General Liability Insurance Actually Protecting You?

You might think that having general liability insurance means you’re fully protected when you’re out on a job site in Cleveland. After all, you paid for the policy, you’ve got the certificate, and your clients are happy. But here’s the uncomfortable truth: many contractors in Cuyahoga County are walking around with coverage gaps they don’t even know exist: gaps that could cost them everything if the wrong claim hits.

The question isn’t whether you have general liability insurance. It’s whether that policy is actually doing what you think it’s doing.

What General Liability Insurance Actually Covers (And What It Doesn’t)

Let’s start with the basics. General liability insurance is designed to protect you against bodily injury and property damage claims that happen during the course of your work. If someone gets hurt on your job site, your policy covers their medical care and your legal defense. If you accidentally damage a client’s property: or even a neighbor’s property while working: you’re covered for that too.

Your policy also extends to completed operations, which means if a problem is discovered after you’ve finished the job, you’re still protected. And there’s coverage for advertising injury claims, like slander or copyright infringement, though these are less common for most contractors.

Sounds comprehensive, right? It is: but only within those specific boundaries. The problem is that many contractors assume general liability covers everything that could go wrong on a job. In reality, it’s just one piece of a much larger puzzle.

Cleveland’s Minimum Requirements: The Starting Line, Not the Finish Line

To legally operate in Cleveland, you need to meet the city’s baseline requirements. That means carrying a minimum of $200,000 in liability coverage per person, along with a certificate naming the City of Cleveland. You’ll also need to pay a $150 registration fee and post a $25,000 surety bond with the Building and Housing Department.

These aren’t suggestions: they’re legal requirements. But here’s what you need to understand: these minimums represent the starting line, not adequate protection for most contractors. A single serious injury or significant property damage claim can easily exceed $200,000, and if you’re only carrying the minimum, you could be personally liable for the difference.

Think about what you’re actually risking. Your business, your equipment, your home, your savings: all of it could be on the line if a claim exceeds your coverage limits. The city’s requirements ensure you meet a legal threshold, but they don’t ensure you’re properly protected.

The Coverage Gaps That Could Sink Your Business

This is where things get serious. Even if you’re carrying more than the minimum required general liability coverage, there are several critical gaps that standard policies don’t automatically fill.

Workers’ Compensation: Separate and Mandatory

If you have employees: even just one: you’re legally required to carry workers’ compensation insurance in Ohio. This is not included in your general liability policy. Workers’ comp covers medical expenses and lost wages if an employee gets injured on the job. Without it, you’re not just underinsured: you’re breaking the law. And if an employee gets hurt and you don’t have coverage, you’re looking at potentially devastating financial and legal consequences.

Professional Liability: When Mistakes Cost Money

Let’s say you specify the wrong materials for a roofing job, and six months later, the client discovers water damage because of it. Your general liability policy may not cover this. Professional liability insurance (also called errors and omissions insurance) is designed specifically for these kinds of mistakes: errors in professional judgment, design flaws, or faulty workmanship that don’t involve immediate bodily injury or property damage.

This is especially important for contractors who provide design services, consulting, or specialized technical work. One specification error can lead to tens of thousands of dollars in damages, and if your general liability policy excludes it, you’re paying out of pocket.

Commercial Auto Insurance: Your Work Vehicles Need Their Own Coverage

Are you using trucks, vans, or trailers to transport equipment and materials to job sites? Your personal auto insurance won’t cover business use, and your general liability policy doesn’t cover vehicle accidents. You need commercial auto insurance as a separate policy. If one of your employees gets into an accident while driving to a job site and someone is seriously injured, you could face claims that far exceed standard auto policy limits.

Contract Liability: Read the Fine Print

Many general liability policies don’t automatically include contract liability coverage, or they limit what types of contractual obligations are covered. If you’re signing contracts with clients that include indemnification clauses: and most do: you need to verify that your policy will actually respond if you’re held liable under those contract terms. This is one of those details that seems minor until you need it.

Commercial Umbrella Insurance: Extra Protection When You Need It Most

Even if you’ve checked all the boxes above, there’s one more layer to consider: a commercial umbrella policy. This kicks in when claims exceed the limits of your underlying policies: general liability, commercial auto, or employer’s liability. If you’re working on larger projects or have significant assets to protect, an umbrella policy can provide an additional $1 million to $5 million (or more) in coverage.

Think of it as your safety net above the safety net. The cost is relatively low compared to the protection it provides, and it can be the difference between a claim being an inconvenience and a claim ending your business.

Why Independent Agencies Make the Difference

Here’s where working with an independent insurance agency like Hoyas Insurance Group changes the game. When you work with a captive agent who represents just one insurance company, you get one solution: their company’s product. That’s it.

At Hoyas, we shop top-rated carriers like Hiscox, Next Insurance, and Berkshire Hathaway to find the coverage that actually fits your business. We’re not trying to shoehorn you into a one-size-fits-all policy. We’re looking at your specific operations, your contracts, your equipment, your employees, and your risk exposure: and then we’re finding the combination of policies that closes those gaps.

We’ve worked with contractors throughout Cleveland and Cuyahoga County, and we’ve seen what happens when coverage is done right and when it’s done wrong. The contractors who come to us after a claim denial or a coverage gap discovery always say the same thing: “I wish I’d known about this sooner.”

You don’t have to be one of those contractors.

What You Should Do Next

If you’re a contractor in Cleveland, here’s what we recommend:

Pull out your current general liability policy and actually read it. Look for what’s excluded, not just what’s covered. Check your limits. Make sure you understand what “occurrence” versus “claims-made” means for your specific policy.

Make a list of everything you do that could potentially cause injury, property damage, or financial loss. Do you do design work? Do you have employees? Do you use vehicles for business? Do you sign contracts with indemnification clauses? Write it all down.

Talk to someone who knows commercial insurance inside and out. That’s where we come in. We’ll review your current coverage, identify the gaps, and show you what true protection looks like: without the sales pressure, without the jargon, and without trying to sell you coverage you don’t need.

The reality is that general liability insurance is essential for contractors, but it’s just the foundation. To be truly protected in Cleveland’s competitive contracting market, you need a comprehensive insurance strategy that addresses all the risks you face: not just the obvious ones.

We’re here to help you build that strategy. Reach out to Hoyas Insurance Group today, and let’s make sure your business is protected the right way: because when you’re on a ladder, on a roof, or operating heavy equipment, the last thing you should be worrying about is whether your insurance will actually be there when you need it.