5 high-risk trades where one accident could mean financial ruin

For many skilled tradespeople, business can run smoothly day after day until one single accident changes everything. All it takes is one slip, one dropped tool, one big spill to trigger a lawsuit large enough to wipe out years of hard work. An established business can vanish with one claim.

Most small business owners operate with tight margins, but many general liability claims can easily reach six figures. According to the U.S. Bureau fo Labor Statistics, there are several trades whose injury and illness rates were well above the industry-average of 2.3 per 100 full-time workers (meaning the odds of something going wrong for these trades are much higher).

General liability insurance doesn’t prevent accidents from happening; but it does play a big role in whether a small business can recover. Having the right coverage (and right policy) is often the difference between a bump in the road and financial ruin.

Take a look at these five high-risk trades backed by real occupational data with real-world examples of claims that can occur for each, revealing how important coverage can be for these popular professionals.

Why general liability insurance matters for trade workers

Insurance is a need because business inherently comes with risks, usually referred to as exposures in the insurance world. Every profession has a different risk exposure profile because of the activities they perform, where they perform them, and more.

The National Safety Council’s summary shows that certain fields experience more non-fatal (and fatal) injuries and accidents than others. Because claims come from these injuries and accidents, these numbers reflect the physical, on-site nature of trade work and the real risks associated with them.

Since general liability coverage helps protect businesses from claims that arise from third-party bodily injury, property damage, and their associated legal costs, it could prevent you from paying a claim out of pocket.

1. Residential roofing

Driven by falls from heights, falling tools and debris, as well as property damage risk, residential roofers and roofing contractors record a nonfatal injury and illness rate of 2.4 per 100 full-time workers according to the BLS.

Consider a residential roofing crew replacing shingles on a home. If a piece of old decking slides off the roof and strikes the homeowner walking around below, and causes bodily injury requiring surgery (and missing work for a few months), the homeowner can sue the contractor for medical costs incurred, lost income, and pain and suffering. The case settles for $1.8M, which is more than most small roofing businesses carry in cash reserves, but a $2M general liability policy could cover the business.

2. Handyman services

Handy work can span a very wide range of activities, from electrical to plumbing, to structural or finishing tasks, making it difficult to classify neatly into a dataset. According to BLS data, occupations that perform installations, maintenance and repair (like handy people) accounted for 9% of the national total occupational fatalities in 2024. Handy people’s exposure multiplies when they take on a wide range of tasks across different client properties – plus a repair can go wrong or cause damage that isn’t discovered until days or week later, and by then, it can be more severe. While part of the job security for handy people is the versatility of the work they can perform, this also means the list of things that can go wrong can be longer.

Consider an example where a handy person is hired to fix some cabinets in a residential kitchen, but in the process of bringing in his equipment, he damages the property (like hardwood floors, windows, or even valuable possessions like antiques) that he was not hired to work on. He can be held liable for the damages – but if he has a general liability policy, the policy could potentially cover the claim and associated investigation or defense costs.

3. Landscapers

According to the BLS, landscaping services record a nonfatal injury and illness rate of 3.0 per 100 full-time workers (higher than the industry average of 2.3 per 100). This figure is high enough that it spurred OHSA to launch a regional emphasis program targeting tree and landscape services, who experience worker fatalities due to falls, striking incidents, and even electrocution. Beyond worker safety, landscaping crews work on third-party property which can be easily damaged while operating heavy mowers, trimmers, blowers, and even excavators. Debris can be unpredictable, utility lines could be struck, or property can be damaged without warning.

Consider a landscaper mowing along a property boundary when a mower blade launches a rock into a neighbor’s yard, striking a child playing nearby. If the child suffers an injury, the family can sue the landscaping company for medical costs, long-term care expenses, and other damages. The claim could be costly, even in the millions, depending on the severity of the bodily injury or property damage.

4. Janitorial and cleaning services

Just above the private-industry average of 2.3, janitorial and cleaning services record a nonfatal injury and illness rate of 2.5 per 100 full-time workers, and 7% of fatalities annually. A freshly mopped floor without proper signage, a cleaning chemical that damages clothing or flesh, or breaking property during the process of cleaning can all generate significant claims. Low margins and high foot traffic in environments where injuries are more likely make janitorial and cleaning crews especially vulnerable to one bad claim turning into a business-ending lawsuit.

Consider a janitorial crew that just finished mopping a hallway in a medical office building and places a wet floor sign – but it falls over. Minutes later, a patient slips and breaks their hip, requiring surgery and weeks of rehabilitation and care. She sues the cleaning company for $1M, citing medical expenses, rehab costs, and loss of a quality of life. Most cleaning companies do not have that kind of cash and end up folding in a scenario like this.

5. Painters

Because painters work at heights, in occupied homes and businesses, and near expensive surfaces and furnishings, it can create meaningful third-party property damage and bodily injury exposure. While the fatality rate for painters is not as high as the other professions listed (1.3 vs 2.3 or higher), the injury rate alone doesn’t tell the whole story. Painters use ladders, scaffolding, ladders, chemicals, and many more documented sources of general liability claims.

Consider a two-person painting crew spraying exterior paint on a home when wind carries overspray onto the neighbor’s new car and outdoor furniture. It can cause costly damage to property. Meanwhile, the neighbor is also claiming the paint fumes caused an aggravated respiratory response, and the bodily injury claim gets added. A standard general liability policy could cover this.

What these professionals and examples have in common

Accidents are unpredictable, this is certain, but the financial outcome of these accidents depend almost entirely on whether the business is prepared (i.e. insured).

Broad trade categories like construction, installation and repair account for more than a third of all occupational deaths in the US. But those aren’t the only trades that experience significant risk and therefore severe financial consequences. Size of a business does not equal exposure (nor ability to survive a claim).

Because insurance can’t prevent accidents and injuries, it’s best to focus on what it’s protecting and how to survive post-incident. Consider the risks your profession or trade expose you to, and what limits you need to adequately protect your business.