Industries
Insurance for Contractors
Liability, workers' compensation, auto and equipment coverage for general contractors and trades, with endorsements and certificates checked against your contracts.
- General contractors and construction managers
- Roofing contractors
- Electrical contractors
- Plumbing and HVAC contractors
- Carpenters and framers
- Landscaping and snow removal contractors
- Painting and drywall contractors
- Masonry, concrete and paving contractors
- Home improvement and remodeling contractors
- Specialty trades such as flooring, tile and fencing
Contractors carry more risk after the job than many expect. A leak, a failed railing or an electrical fire can surface months after you leave the site. When it does, your contract, the endorsements on each policy and the facts of the loss all play a part in whose insurance responds first.
We help contractors and trades across the U.S. review coverage for their work, crews, subcontractors, vehicles, and equipment. We also look at the insurance section of your contracts, so you know what you're agreeing to.
The details matter. How your work is classified, conditions about subcontractors, additional insured endorsements (which extend your coverage to a customer or general contractor) and exclusions for residential work or work at height can limit what a policy responds to. It's worth reviewing them before you sign a contract, not after a claim.
Common risks
Completed operations claims
Faulty work can cause injury or property damage long after a job is finished: water behind a wall, a collapsed deck, a fire from a bad connection. Products-completed operations coverage on a general liability policy is designed for these claims, subject to the policy's terms and exclusions.
Subcontractor liability
When an uninsured or underinsured subcontractor causes a loss, the claim can end up on your policy. At the year-end premium audit, what you paid uninsured subcontractors may also be added to your general liability and workers' compensation premium.
Job-site equipment theft
Tools, generators and machinery left on job sites or in trucks are frequent theft targets. General liability is built for claims by others, not damage to your own property, so tools and mobile equipment usually need separate contractors equipment or inland marine coverage.
Vehicle use
Pickups, vans and trailers hauling crews and materials create auto liability every day. Vehicles used for the business generally belong on a commercial auto policy, employees running errands in their own cars create non-owned auto exposure, and renting a truck for a job creates hired auto exposure.
Employee injuries
Falls, cuts, lifting injuries and vehicle accidents are common in the trades. Workers' compensation rules vary by state, and a subcontractor without its own coverage can sometimes leave its workers treated as yours for workers' compensation purposes.
Contract indemnity
Many construction contracts include a hold-harmless (indemnity) clause that can shift liability for certain claims to you. Contractual liability coverage in a general liability policy can respond to many of these agreements, but some contracts ask for more than the policy provides.
Coverage to consider
Insurance options depend on your business, location, licensing requirements and carrier availability.
- General Liability InsuranceThird-party injury and property damage from your operations and completed work, plus the additional insured endorsements many contracts require.
- Workers' Compensation InsuranceEmployee injuries on the job. General contractors and project owners commonly require it from every subcontractor, and requirements vary by state.
- Commercial Auto InsuranceTrucks, vans and trailers used for the business, plus hired auto for rented vehicles and non-owned auto for employees' own vehicles used for work.
- Contractors Equipment InsuranceTools, generators and mobile equipment such as skid steers and mini excavators, on the job, in storage or in transit.
- Inland Marine InsuranceBuilders risk and installation floaters for materials and work in progress until the project is accepted.
- Umbrella & Excess Liability InsuranceHigher liability limits over general liability, auto and employers liability, often needed to meet contract minimums.
- Surety BondsLicense, permit, bid, performance and payment bonds that project owners, municipalities and public projects may require.
- Professional Liability (E&O) InsuranceDesign-build, engineering or consulting work, where a design or advice error can lead to a claim general liability may exclude.
How quoting works
- 01
Start with your business
Tell us what you do, where you work and what you want to protect — or send your current policy.
- 02
Explore your options
We approach insurance companies that consider your type of business and explain the available choices.
- 03
Talk it through
A licensed ALP agent reviews coverage, limits, deductibles and price with you before you decide.
Common contract and certificate requirements
- Additional insured for ongoing and completed operations, often citing forms such as CG 20 10 and CG 20 37
- Primary and non-contributory wording, so your policy responds before the certificate holder's own insurance
- Waiver of subrogation on general liability, auto, workers' compensation and umbrella
- Per-project aggregate, so a claim on one job doesn't use up the limit available for others
- Umbrella limits that sit over the required policies and extend to the same additional insureds
- Notice of cancellation to the certificate holder, which typically requires an endorsement on the policy
A certificate is evidence of insurance; the policy and its endorsements provide the coverage. Send us the insurance section of your contract and we'll compare it with your policy.
Certificate Center →Helpful information for a quote
- A description of your work and trades, with the split between residential and commercial jobs
- Annual revenue, payroll by trade and amounts paid to subcontractors
- Current policies and loss runs (claims history reports) for the last 3–5 years, if you've been insured before
- A vehicle list with VINs and a list of drivers
- A tool and equipment list with values
- Insurance requirements from your contracts or largest customers
- The subcontract agreement and certificate requirements you use with your subcontractors
Start with basic business information. If more detailed driver information is needed, we'll arrange an appropriate way to collect it.
Upload your current policyFrequently asked questions
Does my contract decide which policy pays a claim?
It plays a big part, but it isn't the only factor. Whose insurance responds also depends on the endorsements on each policy, the policy terms and exclusions, the facts of the claim and, in some cases, state law. That's why it helps to review the contract and the policy together.
Should I be an additional insured on my subcontractors' policies?
Usually, yes, and your own contracts may require you to pass that requirement down to your subcontractors. Additional insured status for ongoing and completed operations on a subcontractor's policy can help keep claims caused by their work off yours, depending on the endorsement wording.
What happens at my audit if I use subcontractors?
Auditors typically ask for a certificate for every subcontractor you paid during the policy term. If a subcontractor had no valid insurance, what you paid them may be added to the amounts your premium is based on, which can increase it.
Does general liability include my tools and equipment?
Typically not. General liability responds to claims by others; your own tools and equipment usually need a contractors equipment or inland marine policy.
What is a per-project aggregate?
It's an endorsement that gives each project its own general aggregate limit, so claims on one job don't reduce the limit available for others. Many project owners and general contractors ask for it on larger jobs.
I do some residential work. Does that matter?
Yes. Some contractor policies exclude or limit residential work, especially new construction, condos and townhomes, so tell us your mix of work and we'll check the policy against it.