Top 5 Contractors Insurance Questions

1. Are subcontractors covered under Contractors Insurance?
If the subcontractor has no insurance, the general contractors insurance will have to cover the subcontractors work. If the subcontractor has insurance, a certificate of insurance needs to be kept to avoid having to cover the subcontractors work. You should also check with your agent to make sure you understand how subcontractors will be treated on your policy.

2. Do I need insurance if I am a subcontractor?
Yes. Most general contractors will ask for proof of insurance to show you have insurance in place. If you don’t have insurance, you may not “win” the job and the general contractor may go with an insured subcontractor.

3. What does it mean to be a licensed and bonded contractor?
Being bonded is different than being licensed. Both are typically regulated by the state the business is in. Bonded means the contractor has purchased a surety bond and this offers protection for the property owner that the contractor is doing work for. The license just means that contractor is licensed with the state to do business there.

4. What are the main insurance coverages for contractors? General Liability, Workers Compensation, Commercial auto insurance, Builders Risk, Installation Coverage, and Tools and Equipment are the main coverages for contractors. There are many other coverage needs for contractors though.

5. What are good contractor insurance companies?
Our agency has our standard carriers that will insure many contractor risks. We also have standard carriers that specialize in just contractors or builders and will be very competitive on contractors insurance.