Contractor Insurance Questions, Answered

General liability covers third-party bodily injury (someone is hurt by your work or on your jobsite), third-party property damage (you damage a client's property), and products-completed operations (a claim arising after a job is finished). It also typically covers personal and advertising injury. It does not cover your own employees' injuries (that's workers' comp) or damage to your own tools (that's inland marine).

In nearly every state, yes — if you have employees, workers' comp is legally required, and the rules and penalties for going without it are strict. Some states require it even for certain owners or subcontractors. Even where a sole proprietor with no employees may be exempt, many general contractors require their subs to carry it before they'll let them on a jobsite.

Inland marine coverage protects the movable property your business depends on — hand tools, power tools, and equipment — against theft, loss, and damage whether it's on the jobsite, in transit in your truck, or in storage. Standard general liability and commercial property policies don't cover your tools the way a proper inland marine policy does.

Builders risk (also called course-of-construction insurance) covers a structure while it's being built or renovated, along with the materials and supplies for the project, against risks like fire, wind, theft, and vandalism. It typically runs for the length of the project and ends when the work is complete and the building is occupied or handed over.

Contractors pollution liability covers environmental exposures that standard general liability policies exclude — claims arising from pollution conditions your work creates or disturbs, such as spills, fuel or chemical releases, silt runoff, mold, and contamination. It's increasingly important for trades that dig, demolish, apply coatings, or work around fuels and chemicals.

The biggest drivers are your trade and its risk level, your payroll and annual revenue, the number of employees, your location and the states you work in, your claims and safety history, the coverage limits and deductibles you choose, and the specific work you do (residential vs. commercial, height, excavation, etc.). Bundling multiple coverages through one agency can also improve your overall pricing.

Workers' comp premium is based primarily on your payroll and the class codes assigned to the work your employees perform — riskier trades carry higher rates per $100 of payroll. Your experience modification factor (based on past claims) then adjusts the premium up or down. Correct class-code assignment matters a lot, and getting it wrong can cost you; we help make sure it's right.

Maintain a clean claims history and a strong safety program, classify payroll and work correctly, choose sensible limits and deductibles, bundle coverages through one agency, and keep accurate records for audits. Being properly documented and presenting your business well to underwriters — which a good agency helps you do — often makes a real difference in pricing.

Not necessarily. Many contractor policies offer monthly or quarterly payment options, and some workers' comp programs are pay-as-you-go, tied to your actual payroll. We'll walk you through the payment structures available for your program so cash flow isn't a barrier to being properly covered.

Insurance is a two-party contract that protects your business from covered losses; if you have a claim, the insurer pays you (or a third party) with no expectation of repayment. A surety bond is a three-party agreement guaranteeing you'll fulfill an obligation; if you fail, the surety pays the claim and you repay the surety. Insurance protects you; a bond protects the party requiring it.

The common ones are license/permit bonds (required to get or keep your contractor license), bid bonds (guaranteeing you'll honor a bid if awarded), and performance and payment bonds (guaranteeing you'll complete a project and pay your subs and suppliers). Which you need depends on your state's licensing rules and the projects you pursue.

Quickly — often the same day once your policy is in place. COIs are a routine, constant need in construction, and we prioritize fast turnaround so a certificate is never what's holding up your start on a job.

An additional insured endorsement extends certain protections of your policy to another party — typically a general contractor or property owner — for liability arising from your work. GCs require it so that if your work causes a claim, they have coverage under your policy too. It's a standard contract requirement, and we add additional insureds routinely.

Yes — send us the contract's insurance requirements (limits, endorsements, additional insured language, waivers of subrogation, and so on) and we'll structure your coverage to satisfy them. Meeting exact contract requirements is one of the most common things we do for contractors bidding larger jobs.

Because it's simpler, faster, and usually better. One agency that knows your whole business can spot gaps between policies, avoid overlaps, keep your COIs and renewals coordinated, and give you a single point of contact when you need something. Piecing coverage together from multiple sources tends to create both gaps and duplication — the opposite of what you want.

We serve contractors nationwide and place coverage across the United States. Requirements vary by state — licensing, workers' comp rules, and bond forms differ — and we work within each state's rules to get your program right wherever you operate.

Tell us about your business — your trade, size, coverages needed, and the state(s) you work in — through our quote form or by phone, and we'll get to work. We gather what we need, shop it appropriately, and come back with options. It's fast and there's no obligation.

Contractors Choice Agency is the licensed insurance agency behind Buy Contractor Insurance. We focus specifically on the construction industry, which means we understand contractor risks, contract requirements, and the coverages your trade actually needs — and we place your policies with that expertise.