Client Property Damage
Does General Liability Cover Property Damage to a Client’s Home?
Yes — covering accidental damage to a client’s property is one of GL’s core jobs. Flooded basements, broken windows, scratched floors, damaged HVAC, ruined cabinetry — all squarely in the covered column.
Or call (234) 231-8427 — Mon–Fri, 9 AM–5 PM EST
What Client Property Damage GL Covers (and What It Doesn’t)
If you work inside someone else’s home or on someone else’s commercial property, accidental damage is going to happen sooner or later. A drop cloth slips and primer hits the hardwood. A ladder leg punches the drywall. A drill nicks a buried water line. These are exactly the events general liability is designed to cover. Learn more about general liability insurance for contractors or scroll down for the details on this question.
A standard $1M per occurrence policy will respond to client property damage including:
- Water damage — flooded basements, ruined hardwood, soaked carpet, damaged drywall from cut or broken pipes.
- Fire damage — sparks from grinders or welders, electrical faults, hot work gone wrong.
- Impact damage — ladders, scaffolding, dropped tools or materials hitting walls, floors, fixtures, vehicles.
- Finish damage — paint over-spray, dust contamination of finished surfaces, scratched countertops, broken tile.
- HVAC, electrical, or plumbing damage — severed lines, fried circuits, broken vents.
- Landscape and exterior damage — ruined sod, broken irrigation lines, damaged driveways from heavy equipment.
There are three big exclusions worth knowing about:
- Damage to property in your care, custody, or control — if a client hands you their $4,000 chandelier to clean and you drop it, the standard policy excludes it. Add a Care, Custody & Control endorsement to close this gap.
- Damage to your own work — if your bad solder joint floods the kitchen, the policy will not pay to re-solder, but it will pay for the kitchen.
- Intentional damage — no policy covers willful misconduct.
In practice, the typical claim involves a homeowner discovering damage they didn’t know about until after the job — cabinets nicked while a tile floor was installed, a pipe pinhole-leaking inside the wall, an HVAC line cut and patched without disclosure. Cooperate with the homeowner, photograph everything, and report the claim to your carrier promptly. Late notice is one of the few things that can void otherwise valid coverage.
Most Important Takeaway
Yes — client property damage is GL’s day job. The only common gaps are damage to property in your care/custody/control and faulty workmanship to your own work, both of which can be addressed with the right endorsements.
What to Do the Moment You Cause Client Property Damage
Even the best contractors cause property damage occasionally. How you respond in the first hour determines whether your insurance pays smoothly or whether the homeowner’s attorney makes you regret every word you said. Run this checklist every time:
- Stop work and secure the area. Stop the leak, shut the power, isolate the room. Prevent the damage from getting worse.
- Document everything with photos and video. Wide shots, close-ups, timestamps. Five minutes of phone footage is worth a thousand words at claim time.
- Notify the client calmly and honestly. Do not admit legal liability or promise to pay out of pocket. “We’ll get our insurance carrier involved right away” is the right script.
- Call your insurance agent immediately. Same-day notice is critical. Late notice is one of the few things that can void otherwise valid coverage.
- Save physical evidence. The failed valve, the broken fitting, the affected materials — keep them. Carriers and attorneys will want to inspect.
Typical Settlement Ranges for Client Property Damage
| Type of Damage | Typical Claim Range |
|---|---|
| Minor finish damage (paint, scratches, tile chip) | $500–$5,000 |
| Drywall and floor patching after impact damage | $2,000–$10,000 |
| Flooded basement (water heater, supply line) | $15,000–$60,000 |
| Kitchen flood from failed plumbing | $25,000–$80,000 |
| Fire damage from hot work or electrical fault | $50,000–$400,000+ |
| Multi-room water or smoke loss | $75,000–$500,000+ |
Across all of these, the contractor’s out-of-pocket is the deductible — usually $500–$2,500. Without GL, every dollar comes out of the business.
The Trade Safe Difference
Why Contractors Choose Trade Safe
Independent Agency
We shop dozens of A-rated carriers on one application so you get the best price and the right policy form for your trade — not whatever a single carrier wants to sell you.
20+ Years in Contractor Insurance
We do nothing but contractor insurance. We know the trade classifications, the carrier appetites, and the endorsements your GC will demand on every COI.
Same-Day Certificates of Insurance
Need an additional insured added before your Monday morning walk? Text or call. We move at jobsite speed, not corporate call-center hold-music speed.
Get a Contractor GL Quote Today
An independent agent who shops dozens of A-rated carriers — and knows your trade inside and out.
Trade Safe Insurance — — Mon–Fri, 9 AM–5 PM EST