Public Works & Government

How Much General Liability Do I Need for a Government Contract?

Most government and public-works contracts require $1M per occurrence / $2M aggregate as a baseline, with larger projects demanding $2M/$4M plus a $5M umbrella and specific endorsements.

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Typical GL Limits Required for Government Contracts

Government contracts — federal, state, county, municipal, school district — almost always specify general liability minimums in the bid documents. The exact numbers vary by contracting authority and project size, but the patterns are predictable. Learn more about general liability insurance for contractors or scroll down for the details on this question.

Here are the GL limits most contractors will see by contract type:

• Small municipal jobs ($25K–$250K): $1M per occurrence / $2M aggregate — sometimes lower for very small purchase orders.
• Standard public-works (street, sewer, parks, $250K–$2M): $1M/$2M with additional insured and waiver of subrogation in favor of the public entity.
• Ohio school district / state university construction: $1M/$2M GL plus $5M umbrella, with per-project aggregate and primary & non-contributory wording.
• Federal construction (GSA, VA, DOD, $1M+): $1M/$2M GL plus $5M–$10M umbrella, plus per-project aggregate, plus completed-operations additional insured.
• Large infrastructure / hospital / federal courthouse work: $2M/$4M GL plus $10M+ umbrella, plus pollution liability and (often) project-specific OCIP/CCIP wrap-up coverage.

Beyond limits, government contracts almost always require a specific set of endorsements you have to attach to your COI:

• Additional insured for ongoing AND completed operations (CG 20 10 + CG 20 37).
• Waiver of subrogation in favor of the public entity (CG 24 04).
• Primary and non-contributory wording — your policy pays before the government’s.
• Per-project aggregate — resets your $2M for each separate project.
• 30-day notice of cancellation — written notice if your policy lapses.
• Specific language for indemnification, defense, and hold-harmless — spelled out in the contract.

Surety bonds (performance, payment, and bid bonds) are also typically required for government work. The surety will not write the bond without confirming your GL is in place at the required limits with the required endorsements, so these all move together.

What Government Contract Insurance Actually Costs

Adding the endorsements and limits required for government work typically adds 10–30% to your annual premium, but the contract margins on public works also tend to be more predictable than competitive private work. Here’s a realistic budget for a mid-sized contractor stepping up to government bidding:

• Upgrade from $1M/$2M to $2M/$4M: +10–20% on GL premium.
• Add $5M commercial umbrella: $800–$2,400/year depending on trade and revenue.
• Add per-project aggregate endorsement: +5–10% on GL premium.
• Add primary/non-contributory + waiver of subrogation: usually free with a competent agent and carrier.
• Surety bond premium (performance + payment): 1–3% of contract value, paid per project.
• Builder’s risk (if required): 0.1–0.5% of project value.

Trade Safe maintains relationships with surety brokers and specialty carriers who routinely write contractors entering public-works markets. We coordinate the GL, umbrella, bonds, and project-specific endorsements as a single package so you can bid with confidence.

Common Endorsements Required on Public Works COIs

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You Might Also Find Helpful

• → General Liability Coverage Limits Explained
• → What Is a $1 Million GL Policy?
• → Additional Insured Endorsements for Contractors

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