Business Insurance for Contractors: The Complete Checklist
Contractors face a stack of insurance requirements — from GCs, from clients, from the state. Here's what each coverage does and why your contracts will demand most of them.
For contractors, insurance isn't just protection — it's a prerequisite to getting hired. General contractors, project owners, and licensing boards all require specific coverages before you can pick up a tool on their job. Here's the stack, and what each piece actually does.
General liability — the foundation
General liability covers third-party bodily injury and property damage your operations cause — a client's floor you damage, a passerby injured at your site. The market standard is $1M per occurrence / $2M aggregate, and nearly every contract requires at least that. Critically, products-and-completed-operations coverage protects you for claims that surface after the job is done.
Workers' compensation — required by law
Nearly every state requires workers' comp once you hire your first employee, and several construction trades require it even for sole proprietors. Beyond legality, a single serious injury can cost six figures. Watch your class codes and experience modifier (e-mod) — many project owners won't hire contractors with an e-mod above 1.0.
Commercial auto and tools
Personal auto policies exclude most business use — hauling tools to job sites, deliveries. A work truck needs commercial auto, and contracts often require a $1M combined single limit. Your tools and equipment in the truck aren't covered by the auto policy at all; those need an inland marine (contractor's equipment) policy.
Certificates of insurance — your ticket to the job
A certificate of insurance (COI) is the one-page proof of coverage clients and GCs demand before you start. Getting the additional-insured endorsements right is routine for an agency and a frequent compliance headache for contractors who buy coverage online. We issue COIs same-day with the exact wording your contract requires.
Frequently asked questions
What insurance do general contractors require from subs?
Most GCs require subcontractors to carry general liability (commonly $1M/$2M), workers' compensation, and often commercial auto — and to name the GC as additional insured on a certificate of insurance before work begins.
How fast can I get a certificate of insurance?
We issue COIs same-day — usually within the hour during business hours — including additional-insured wording when your contract requires it.