When a framing contractor discovers their $180,000 wall collapse claim was denied because of a coverage exclusion they didn't know existed, it's already too late. Unfortunately, this scenario plays out more often than most framers realize. Many contractors believe their general liability insurance provides comprehensive protection, only to discover critical gaps when filing a claim.
⚠️ Critical Gap Alert
General liability insurance does NOT cover employee injuries, your tools, your vehicles, or the cost to fix your own faulty work. These gaps can bankrupt an unprepared contractor.
General liability insurance framers is essential coverage—but it's far from comprehensive. Understanding what general liability insurance for framers does NOT cover could save your business from financial disaster. This guide reveals the 10 major exclusions in general liability policies and what additional coverage framing contractors actually need in 2025.
The current insurance market shows increased underwriting scrutiny for wood-frame projects, with premiums rising 10-25% and coverage becoming more restrictive. Knowing these coverage gaps isn't just smart—it's essential for protecting your framing business.
Understanding General Liability for Framers (What It DOES Cover First)
Before diving into exclusions, let's establish what general liability insurance for framers actually provides.
✓ What GL Insurance DOES Cover
- Third-Party Bodily Injury: Client or visitor trips over lumber on your job site - medical expenses, legal defense, settlements
- Third-Party Property Damage: Falling framing materials damage neighbor's vehicle or client's window
- Legal Defense Costs: Attorney fees, court costs, settlements - even for frivolous lawsuits
- Products-Completed Operations: Claims after you leave the job site - structural issues discovered months/years later
🎯 Critical Distinction
General liability covers only third-party liability—harm your business causes to others. It does NOT protect your employees, your property, or the cost to fix your own work.
Many framers mistakenly believe GL is comprehensive coverage when it's actually narrow protection against specific, accidental third-party claims. Contract requirements from GCs mandate GL but rarely explain what's excluded.
Employee Injuries & Workers Compensation (The #1 Exclusion)
❌ #1 Misconception
General liability does NOT cover employee injuries. This exclusion (Exclusion E in ISO CGL form) is absolute. Falls, nail gun injuries, back strains - all require separate workers' compensation insurance.
Workers' Compensation vs General Liability Comparison
| Aspect | Workers' Compensation | General Liability |
|---|---|---|
| Who It Covers | Your employees | Third parties (clients, visitors, property owners) |
| What It Covers | Employee injuries, lost wages, medical costs | Third-party injury and property damage |
| Legal Requirement | Required in most states | Optional (contractually required) |
| When It Pays | Work-related injuries during employment | Accidents caused by your operations |
| Example Claim | Framer falls from ladder and breaks leg | Client trips over framing materials |
According to state licensing requirements, many jurisdictions mandate workers' compensation coverage regardless of the number of employees. California, for example, requires certain contractor classifications to maintain workers' comp even as sole proprietors.
Real Framing Scenarios
Scaffold Fall:
Your framer is working on second-story wall framing when scaffolding collapses, causing serious injuries. General liability won't pay medical bills, lost wages, or rehabilitation costs—workers' compensation covers these.
Nail Gun Injury:
A crew member suffers a penetrating injury from a pneumatic framing nailer. GL excludes employee injuries entirely. Workers' comp handles medical treatment and disability payments.
Repetitive Strain Injury:
Years of lifting heavy lumber lead to a back injury requiring surgery. This gradual injury to an employee falls under workers' comp, not general liability.
Why Framers MUST Have Separate Workers' Compensation
Beyond the obvious moral obligation to protect your team, workers' compensation is legally mandated in most states.
⚠️ Penalties for Non-Compliance
- Civil penalties: Fines of $10,000+ per violation
- Criminal penalties: Misdemeanor or felony charges in some states
- Stop-work orders: State authorities can shut down job sites
- Personal liability: Without workers' comp, injured employees can sue you personally
Workers' compensation costs significantly more than many trades due to the physical nature and injury risk of framing work. While expensive, it's non-negotiable coverage that general liability simply doesn't provide.
According to OSHA construction safety standards, contractors are responsible for worker safety programs, but compliance doesn't eliminate the need for workers' comp insurance. Safety reduces claims; insurance handles claims that occur despite precautions.
Does General Liability Cover Employee Injuries?
No, general liability insurance does not cover workers' compensation. General liability protects against third-party bodily injury and property damage claims, while workers' compensation is a separate policy required by most states that covers employee injuries and illnesses sustained on the job. Framers need both types of coverage for complete protection.
Your Work & Faulty Workmanship (The "Your Work" Exclusion)
❌ #2 Major Exclusion
GL won't pay to fix your defective framing. Exclusion L separates business risk from insurable risk. Insurance covers harm your work causes to others—NOT the cost to repair your own mistakes.
What the "Your Work" Exclusion Means
✗ NOT Covered Under "Your Work" Exclusion
- Cost to replace incorrect framing: Miscalculated load-bearing walls must be rebuilt at YOUR expense
- Labor to redo work: Inspectors flag code violations - you pay to correct
- Wasted materials: Lumber ruined by improper installation
- Contract spec failures: Not following plans is YOUR business risk
Structural Failure Scenarios
Wall Collapse During Construction:
You frame interior walls but miscalculate bearing loads. During drywall installation, walls begin to sag. General liability likely excludes the cost to reframe the walls correctly, though it may cover damage to other contractors' completed work.
Roof Sag from Inadequate Framing:
Roof trusses installed without proper engineering analysis begin to bow under load. GL won't pay to replace the trusses, but may cover resulting damage to roofing, insulation, or ceilings.
Foundation Damage from Improper Framing:
Your wall framing transfers loads incorrectly, causing foundation cracks. The cost to correct your framing isn't covered, but foundation damage caused by your error may be.
What IS Covered vs. NOT Covered
According to construction defect coverage analysis, here's the critical distinction:
✗ NOT COVERED
- Cost to replace incorrectly installed framing
- Labor to redo work not done to code
- Materials wasted due to installation errors
- Work that doesn't meet contract specifications
✓ MAY BE COVERED
- Property damage CAUSED by your faulty work
- Injury to third parties from construction defects
- Damage to other contractors' work caused by your errors
- Consequential damages beyond just your framing
Real Example: The Wall Bowing Scenario
A framing contractor installs load-bearing walls using improper stud spacing. Six months after project completion, walls bow and crack drywall throughout the home. The general liability claim decision:
Denied: Cost to tear out and reframe walls correctly ($45,000)
Covered: Damaged drywall, paint, flooring affected by wall movement ($28,000)
Result: Contractor pays $45,000 out of pocket while insurance covers consequential damage
Solutions: How to Address the Faulty Workmanship Gap
💡 Coverage Solutions
- Completed Operations Coverage: Standard in most GL policies, extends protection after you leave. Doesn't eliminate "your work" exclusion but covers resulting damage.
- Faulty Workmanship Endorsement: Adds affirmative coverage for defective work. $500-$1,500/year
- Professional Liability (E&O): Covers design-build services, engineering input, or framing design errors.
Research from the National Association of Home Builders confirms that many construction defect claims are wrongfully denied under the "your work" exclusion. Contractors facing denials should never accept "no" without consulting experienced construction coverage attorneys.
Does GL Cover Faulty Workmanship?
General liability policies typically exclude coverage for faulty workmanship through the "your work" exclusion. GL won't pay to fix your defective framing, but may cover property damage caused by your work. NOT covered: cost to redo work, labor, wasted materials. MAY be covered: damage to other property caused by your defective work, third-party injuries.
Tools, Equipment & Property (Inland Marine Insurance Needed)
❌ #3 Major Exclusion
GL does NOT cover stolen tools or equipment. The "care, custody, and control" exclusion means your business assets require separate inland marine coverage. GL only protects third-party property.
Equipment Damage and Theft Scenarios
$20,000 in Tools Stolen from Job Site:
Your truck is broken into overnight, and all framing tools are stolen—pneumatic nailers, saws, laser levels, air compressor, and hand tools. General liability provides zero coverage because it's your property, not a third party's.
Nail Guns Stolen from Truck:
Three pneumatic framing nailers worth $1,500 each vanish from your locked work truck. GL won't pay to replace them.
Laser Level Damaged on Site:
A $2,000 rotary laser level is dropped and destroyed. If you dropped it, GL doesn't cover damage to your own equipment.
Real Scenario: A lumber package worth $75,000 was stolen from a framing contractor's job site. The general liability policy excluded theft of the contractor's materials. The builder's risk policy had lapsed between projects. Result: No coverage, $75,000 loss paid out of pocket.
Solutions: Inland Marine Insurance
According to framing contractor insurance guidance, inland marine insurance specifically protects contractor tools and equipment anywhere they're used:
🛠️ What Inland Marine Covers
- Tools in transit (in your truck between jobs)
- Equipment on job sites (even overnight)
- Tools in storage (shop, warehouse, or rented storage)
- Coverage for theft, vandalism, and damage
Alternative Coverage Options
Commercial Property Insurance: Covers tools and equipment at your business location (not in transit or on job sites). This works for contractors with permanent shops but not for tools traveling to multiple sites.
Equipment Floater: Specialized coverage for expensive individual items like boom lifts, laser equipment, or high-value machinery. Often purchased as a supplement to inland marine.
Does General Liability Cover Stolen Tools?
No, general liability insurance does not cover stolen contractor tools or equipment. To protect your tools from theft, you need:
- Inland marine insurance (tools anywhere)
- Commercial property insurance (tools at business location)
- Equipment floater coverage (tools in transit)
General liability only covers third-party property, not your business assets.
Vehicles & Auto Liability (Commercial Auto Required)
❌ #4 Major Exclusion
Auto liability is ABSOLUTELY excluded from GL. Exclusion G covers all aircraft, auto, or watercraft liability. Even job site vehicle accidents require separate commercial auto insurance.
Auto Liability Exclusion Explained
✗ Auto Exclusion Applies To:
- Vehicles licensed for road use (pickup trucks, vans, trailers)
- Accidents driving to job sites
- Incidents in parking lots or while maneuvering
- Collisions involving trailers hauling materials
Work Truck and Vehicle Scenarios
Truck Backing into Client's Garage:
Your work truck backs into a client's garage door while loading equipment after finishing a job. General liability excludes this because it involves a vehicle. Commercial auto insurance covers the property damage.
Accident Driving to Job Site:
Your crew's truck runs a red light traveling to a framing job, causing an accident that injures a third party. GL policy doesn't apply—commercial auto must respond.
Collision with Trailer Hauling Materials:
While pulling a trailer loaded with lumber, you jackknife and cause a multi-vehicle accident. General liability provides zero coverage for vehicle-related incidents.
Real Scenario: A framing crew's truck ran a red light going to a job site, causing an accident that injured a third party. The general liability policy excluded auto liability. The commercial auto policy covered only property damage, not the $850,000 injury claim because the contractor had minimum liability limits. Lesson: Coordinate GL and auto coverage limits.
Solutions: Commercial Auto Insurance
🚗 Commercial Auto Coverage Options
- Commercial Auto Policy (BAP): Required for vehicles owned by or titled to your business. Covers liability, collision, and comprehensive damage.
- Hired and Non-Owned Auto: Protects when employees use personal vehicles for business.
- Coordinated Limits: Match auto limits to GL limits to avoid coverage gaps.
Professional Services & Design (E&O Insurance Gap)
General liability excludes professional services, design errors, and consulting work. As framers increasingly provide design-build services, BIM coordination, and value engineering input, this exclusion creates significant exposure.
The professional liability exclusion (often via endorsement CG 22 43) eliminates coverage for errors in architectural, engineering, surveying, or consulting services—even when these services are incidental to your framing work.
When Framers Need Professional Liability
According to professional liability experts, framers should consider professional liability (E&O) insurance when:
📐 You Need E&O Insurance If You Do:
- Design-Build Projects: Providing both framing design and installation
- BIM Coordination: Using building information modeling with other trades
- Value Engineering: Suggesting design changes to reduce costs
- Engineered Framing: Designing custom truss layouts or structural framing
What's Excluded from GL
Design Errors Causing Financial Loss: If your framing design creates cost overruns or requires redesign, general liability excludes these financial damages.
Engineering Mistakes in Framing Calculations: Errors in load calculations, span tables, or structural analysis aren't covered by GL.
Faulty Specifications You Provide: When you provide framing specifications and those specs are wrong, the professional services exclusion applies.
Real Example: A framing contractor provides design input on structural framing for a commercial project. A design error leads to a structural issue discovered before construction completion. The client sues for $200,000 in redesign costs and project delays. General liability denies the claim under the professional services exclusion. Professional liability insurance would have covered this claim.
Solutions: Professional Liability (E&O) Insurance
According to contractor professional liability resources, professional and pollution liability coverage fills critical gaps in standard GL policies for contractors performing design-build work.
Pollution, Cyber & Other Exclusions
Modern general liability policies exclude numerous risks that framers face but often don't anticipate. Understanding these exclusions prevents unpleasant surprises.
Pollution and Environmental Exclusions
According to pollution exclusion guidance, most CGL policies contain absolute pollution exclusions.
☢️ GL Does NOT Cover These Pollution Events
- Asbestos Disturbance: Working on older buildings where you disturb asbestos materials
- Silica Dust: Concrete cutting generates dust that can constitute pollution
- Mold from Water Intrusion: If improper framing creates mold conditions
- Chemical Spills: Adhesives, preservatives, sealants can trigger exclusion
💡 Solution: Contractors Pollution Liability (CPL)
CPL insurance covers pollution events that standard GL excludes. Cost: $1,000-$3,000/year depending on operations.
Cyber Liability Exclusions
According to cyber coverage analysis, general liability policies explicitly exclude cyber incidents:
💻 Cyber Risks NOT Covered by GL
- Data Breaches: Client information stolen from your computers
- Ransomware Attacks: Hackers locking your business computers
- Electronic Data Loss: Project files lost due to computer failure
- Notification Costs: State-required breach notifications
As contractors adopt digital project management tools, store client data, and rely on technology, cyber risks increase dramatically. Separate cyber liability insurance is essential.
Intentional Acts and Expected or Intended Injury
There's no "intentional acts exclusion" in general liability policies—the actual exclusion is for "expected or intended injury." This critical distinction:
Deliberate Actions with Unintended Harm ARE Covered: You intentionally drill a screw (deliberate action) but accidentally hit a water pipe (unintended damage). This is covered because the damage wasn't expected or intended.
Intended Injury NOT Covered: If you deliberately damage property or intend to cause harm, coverage is excluded.
Other Common Exclusions
- Aircraft and Watercraft: Complete exclusion for aviation and marine activities
- Employment Practices: Wrongful termination, discrimination, harassment require separate EPLI coverage
- Contractual Liability Limitations: Broad-form hold harmless agreements may not be insured
- War and Terrorism: Many policies exclude acts of war or terrorism
- Nuclear Hazards: Absolute exclusion for nuclear incidents
What You Need Instead: Complete Coverage for Framers
General liability is essential but insufficient. Framers need a comprehensive insurance portfolio covering all major risks.
Summary of Coverage Types Framers Need
1. General Liability
Covers: Third-party injury and property damage
$2,500-$4,500/year
Required by general contractors
2. Workers' Compensation
Covers: Employee injuries and illnesses
15-25% of payroll
Required by law in most states
3. Inland Marine
Covers: Tools and equipment theft/damage
$300-$800/year
Essential for protecting assets
4. Commercial Auto
Covers: Vehicle accidents and liability
$1,200-$2,500/year
Required for business vehicles
5. Umbrella Liability
Covers: Excess liability over primary policies
$750-$1,500/year
Required for large projects
6. Professional Liability
Covers: Design errors and professional services
$800-$2,000/year
If providing design services
7. Pollution Liability
Covers: Environmental risks and contamination
$1,000-$3,000/year
For renovation work
8. Cyber Liability
Covers: Data breaches and ransomware
$500-$1,200/year
Increasingly important
Total Estimated Insurance Costs
Costs vary based on payroll, project types, location, claims history, and coverage limits.
How to Get Proper Coverage
According to industry best practices, framers should:
✓ Best Practices Checklist
- Work with Specialized Brokers: Seek brokers specializing in contractor insurance, not retail agents
- Review Actual Policies: Certificates don't disclose exclusions - read the full policy
- Coordinate Coverage Limits: Match limits on GL, auto, and umbrella to avoid gaps
- Annual Policy Review: Review 60 days before renewal to allow time for changes
- Shop Every 2-3 Years: Insurance markets fluctuate - compare periodically
According to small business insurance guidance, comprehensive insurance portfolios protect businesses from catastrophic losses that could otherwise force closure.
Frequently Asked Questions
Does general liability insurance cover workers' compensation for framers?
No, general liability insurance does not cover workers' compensation. General liability protects your business from third-party bodily injury and property damage claims (like a client slipping on your job site). Workers' compensation is a separate policy that covers your employees' medical expenses and lost wages from work-related injuries. Most states require framers to carry workers' comp if they have employees.
What's the difference between workers' comp and general liability?
| Aspect | Workers' Compensation | General Liability |
|---|---|---|
| Covers | Your employees | Third parties |
| Injuries | Work-related employee injuries | Non-employee injuries from your work |
| Property Damage | Not covered | Third-party property damage |
| Legal Requirement | Required in most states | Contractually required |
| Example | Framer falls from ladder | Client trips over lumber |
Both policies are essential for framers but serve different purposes. Workers' comp protects your team, while general liability protects your business from third-party claims.
Does general liability cover stolen tools and equipment?
No, general liability insurance does not cover stolen contractor tools or equipment. General liability only protects third-party property, not your business assets. To protect your tools from theft, damage, or loss, you need inland marine insurance (also called contractor's tools and equipment insurance). This specialized coverage protects your tools whether they're in your truck, on a job site, or in storage, and typically costs $300-$800 annually depending on tool value.
Does general liability cover vehicle accidents?
No, general liability insurance does not cover auto accidents, even if they occur during work. Vehicle accidents are excluded from general liability policies. Framers need commercial auto insurance to cover work vehicles, or hired and non-owned auto coverage if you use personal vehicles for business. Even accidents in company parking lots may not be covered by general liability alone.
Does general liability cover faulty workmanship or construction defects?
General liability policies typically exclude or severely limit coverage for faulty workmanship through the "your work" exclusion. This means if you improperly install framing that needs to be corrected, your general liability won't pay to redo the work. However, if your faulty workmanship causes additional damage (like improper framing causing a roof to collapse), general liability may cover the resulting property damage. For full faulty workmanship protection, framers can purchase a Contractors Faulty Workmanship endorsement.
Does general liability cover damage to my own work or property?
No, general liability insurance does not cover damage to property you own, rent, control, or are working on. This is called the "care, custody, and control" exclusion. If you damage your own framing work, stored materials, or rented equipment, general liability won't pay. You need builder's risk insurance for work in progress and inland marine insurance for your tools and materials.
What is the "your work" exclusion in general liability policies?
The "your work" exclusion prevents your general liability insurance from covering damage to work you've already completed. For example, if framing you installed six months ago fails due to a mistake, your GL policy won't pay to repair or replace that framing. However, there's typically an exception: if a subcontractor you hired did the defective work, your general liability may cover it. This exception is why general contractors often require subcontractors to carry their own insurance.
Does general liability cover subcontractors working for me?
General liability policies typically exclude coverage for subcontractors, meaning if a subcontractor you hire causes damage or injury, your policy likely won't cover it. Most insurance companies require subcontractors to carry their own general liability insurance and add you as an additional insured on their policy. Some policies include a subcontractor exception to the "your work" exclusion, but the CG 2294 endorsement (increasingly common) eliminates this exception, creating a significant coverage gap.
Does general liability cover pollution or environmental damage?
Most general liability policies exclude pollution and environmental damage. For framers, this could include chemical spills from adhesives, preservatives, or equipment fluids that contaminate soil or water. If you use treated lumber, adhesives, sealants, or other chemicals in your framing work, you may need separate pollution liability insurance. Some policies offer limited pollution coverage for sudden and accidental spills, but ongoing or gradual pollution is typically excluded.
Does general liability cover cyber attacks or data breaches?
No, general liability policies specifically exclude cyber-related risks, including data breaches, ransomware attacks, and loss of electronic data. While framers may think cyber insurance isn't relevant, consider this: if your business computer is hacked and client information (contact details, project specifications, payment information) is stolen, general liability won't cover notification costs, legal fees, or liability claims. You need separate cyber liability insurance.
What is an additional insured, and does it affect my coverage?
An additional insured is someone (usually a general contractor or property owner) who you add to your general liability policy via endorsement, giving them coverage under your policy for claims arising from your work. This is commonly required in framing contracts. While adding additional insureds doesn't reduce your coverage, it does mean your policy will respond to claims against them related to your work, potentially affecting your claims history and premiums.
When do framers need umbrella insurance?
Framers should consider umbrella insurance when working on large projects, operating with high-value assets, using heavy equipment, or when contracts require coverage limits above your primary policy ($1 million or $2 million). Umbrella insurance provides additional liability coverage (typically $1-$5 million) that kicks in when your general liability, auto, or other primary policies are exhausted. It's relatively affordable ($750-$1,500/year) and protects your business from catastrophic claims that exceed standard coverage limits.
Conclusion: Protect Your Framing Business with Complete Coverage
General liability insurance is essential coverage—but understanding what it doesn't cover is equally important. GL provides critical protection against third-party bodily injury and property damage claims, but it leaves significant gaps that could financially devastate your framing business.
⚠️ Critical Exclusions Every Framer Must Know
- ✗ Employee injuries require workers' compensation
- ✗ Stolen tools need inland marine insurance
- ✗ Vehicle accidents demand commercial auto coverage
- ✗ Faulty workmanship may need special endorsements
- ✗ Professional design services require E&O insurance
- ✗ Pollution and cyber risks need separate policies
According to construction financial management experts, many contractors discover these exclusions only after filing claims—when it's too late.
Work with a broker specializing in construction insurance
Based on the exclusions discussed in this guide
Workers' comp, inland marine, commercial auto, umbrella
Ensure consistent protection across all policies
Schedule 60 days before renewal for adequate time
Don't wait until you file a claim to discover your general liability insurance doesn't cover a critical exposure. Contact a construction insurance specialist for a comprehensive coverage review—GL is just one piece of the puzzle.