Contractor General Liability in Washington (2025): Cost & COI Guide
For Washington contractors in 2025, understanding general liability insurance is essential. This coverage protects against third-party bodily injury, property damage, and legal defense costs. Most clients will require a valid certificate of insurance (COI) showing limits such as $1 million per occurrence / $2 million aggregate.
This guide explains average costs by trade, state limits, COI requirements, additional insured endorsements, and how to reduce your premium through safety discounts.
Cost by Trade
General liability insurance rates in Washington vary by trade risk, payroll size, and claims history. Here’s what contractors can expect in 2025:
| Trade | Estimated Annual Premium (2025) | Typical Policy Limits |
|---|---|---|
| Painter / Handyman (low risk) | $800 – $1,500 | $1M / $2M |
| Carpenter / Remodeler (medium risk) | $1,500 – $3,500 | $1M / $2M or higher |
| Roofing / Demolition (high risk) | $3,500 + | $2M / $4M + umbrella |
Small contractors in Washington pay an average of $1,100 – $1,400 per year for basic general liability coverage.
Policy Limits & State Minimums
- The Washington Department of Labor & Industries (L&I) requires contractors to carry at least $200,000 public liability + $50,000 property damage, or a $250,000 combined single limit (CSL) to maintain registration.
- Many private contracts, municipalities, and commercial clients require higher coverage — typically $1M/$2M or above.
- General liability typically covers bodily injury, property damage, completed operations, and defense costs.
Additional Insured & COIs (Certificates of Insurance)
- Clients often require being listed as Additional Insured on your GL policy to be covered for your operations.
- A COI must include policy limits, policy dates, carrier name, and endorsement details like “primary & non-contributory” or “waiver of subrogation.”
- L&I must be listed as the certificate holder for contractor registration in Washington.
- Keep your COI current — expired certificates can suspend your registration or delay payment.
Safety Discounts & Cost Reduction Tips
- Implement a documented safety program and maintain a clean claims record.
- Bundle multiple policies (e.g., GL + tools + commercial auto) for 10–25 % multi-policy discounts.
- Consider higher deductibles to reduce annual premiums if your cash flow allows.
- Choose projects and subcontractors that match your risk level — avoid hazardous work outside your specialization.
FAQs
Is $1M/$2M general liability enough in Washington?
$1 million per occurrence and $2 million aggregate is standard and accepted for most small projects. However, public or commercial contracts may require higher limits or umbrella coverage.
Does general liability cover my tools and equipment?
No. GL only covers third-party injury and property damage. You’ll need a separate tools & equipment (inland marine) policy for gear protection.
Do claims affect my premium?
Yes. Prior claims can increase your risk rating and raise premiums. Keeping a clean loss history and improving jobsite safety helps lower future rates.
Is general liability insurance mandatory for Washington contractors?
Yes. L&I requires all registered contractors to maintain at least $200,000 public liability and $50,000 property damage coverage, or $250,000 CSL.
How can I reduce my general liability premium?
Compare quotes annually, maintain safety compliance, reduce claims, and bundle coverages. Discounts up to 25 % are possible with strong safety records.
Key Takeaways
- General liability insurance is required for Washington contractor registration.
- Typical cost ranges between $800–$3,500 annually depending on risk level.
- Clients usually require $1M/$2M coverage plus Additional Insured endorsements.
- Keep COIs updated and align your coverage with contract requirements.
- Investing in safety programs can lower your premiums and increase client trust.