Whether you're a general contractor, electrician, plumber, HVAC technician, painter, landscaper, or another skilled trades professional, having the right insurance is an important part of running your business.
We've answered some of the most common questions we hear from contractors to help you better understand your coverage and avoid costly surprises.
We've answered some of the most common questions we hear from contractors to help you better understand your coverage and avoid costly surprises.
Last Updated: July 2026
What happens if one of my employees gets hurt on a job site?
If an employee suffers a work-related injury, workers' compensation insurance may help provide benefits such as medical care and a portion of lost wages, subject to applicable laws and policy terms.
Requirements vary depending on where you operate and how your business is structured. As your workforce changes, we'll help you review whether your workers' compensation coverage continues to reflect your business.
Requirements vary depending on where you operate and how your business is structured. As your workforce changes, we'll help you review whether your workers' compensation coverage continues to reflect your business.
I bought a trailer for my tools and equipment. Do I need separate coverage?
Possibly. A work trailer and the tools or equipment stored inside it may not automatically have the same protection as your truck, especially when they're parked at a job site or stored overnight.
Let us know how you use the trailer and what you keep inside it. We'll review your current policies and help identify any potential gaps before a theft or other loss occurs.
Let us know how you use the trailer and what you keep inside it. We'll review your current policies and help identify any potential gaps before a theft or other loss occurs.
Does my insurance cover a project while it's still under construction?
Not necessarily. General liability insurance protects against certain liability exposures, but it isn't designed to insure the entire structure you're building or renovating against every type of physical damage.
Depending on the project, builders risk coverage may be appropriate to protect the structure and certain materials during construction. We'll help you determine who is responsible for arranging that coverage before work begins.
Depending on the project, builders risk coverage may be appropriate to protect the structure and certain materials during construction. We'll help you determine who is responsible for arranging that coverage before work begins.
What happens if materials are damaged before they're installed?
Building materials can be exposed to theft, fire, weather, and other risks while they're being stored, transported, or waiting to be installed. Whether they're covered depends on where the materials are located and the type of insurance you carry.
If your projects involve expensive materials or supplies that remain at job sites, we'll help you understand how they're protected and whether additional coverage should be considered.
If your projects involve expensive materials or supplies that remain at job sites, we'll help you understand how they're protected and whether additional coverage should be considered.
I started taking on larger projects. Should I review my insurance?
Yes. Larger projects can mean higher contract values, more expensive materials, additional workers, and greater liability exposure. The insurance that worked when you were handling smaller jobs may not provide the same level of protection as your business grows.
Before taking on significantly larger projects, let us know what's changing. We'll review your operations, limits, and contract requirements to help make sure your insurance continues to fit the work you're doing.
Before taking on significantly larger projects, let us know what's changing. We'll review your operations, limits, and contract requirements to help make sure your insurance continues to fit the work you're doing.
What's the biggest insurance mistake contractors make?
One of the most common mistakes is assuming their coverage automatically keeps up with their business. As contractors hire employees, purchase equipment, take on larger projects, or change the type of work they perform, their insurance needs often change as well.
Regular policy reviews help ensure your coverage reflects your current operations.
Regular policy reviews help ensure your coverage reflects your current operations.
What if I store equipment at different job sites?
Many contractors move tools and equipment between vehicles, shops, and multiple job sites. Specialized inland marine or equipment coverage may help protect property while it's in transit or temporarily stored.
We'll help determine whether additional coverage is appropriate.
We'll help determine whether additional coverage is appropriate.
Can weather delays affect my insurance?
While insurance typically doesn't cover every financial impact of weather delays, severe weather can affect equipment, job sites, and project timelines.
We'll help explain which coverages may apply to your business.
We'll help explain which coverages may apply to your business.
What should I do if a client asks to be listed as an additional insured?
Many contracts require this. Depending on your policy, an endorsement may be added to extend certain liability protections to another party for work performed under a contract.
We'll review the request and help issue the appropriate endorsement if available.
We'll review the request and help issue the appropriate endorsement if available.
Can I work without insurance if my state doesn't require it?
Even if insurance isn't legally required for every contractor, many clients, general contractors, and commercial projects won't hire uninsured contractors.
Insurance also helps protect your business from unexpected financial losses.
Insurance also helps protect your business from unexpected financial losses.
Does contractor insurance cover work after the job is finished?
Some liability policies may provide protection for covered claims involving completed work, depending on the policy and the circumstances.
We'll help you understand how completed operations coverage works.
We'll help you understand how completed operations coverage works.
Can I change my insurance as my business grows?
Yes. As you hire employees, purchase equipment, take on larger projects, or expand into new services, your insurance should be reviewed to reflect those changes.
Regular reviews help ensure your coverage grows with your business.
Regular reviews help ensure your coverage grows with your business.
What happens if I accidentally damage a customer's property?
General liability insurance may help cover accidental property damage you're legally responsible for, subject to your policy's terms and conditions.
We'll explain how liability coverage applies to your work.
We'll explain how liability coverage applies to your work.
Why do some contracts require higher liability limits?
Larger projects, municipalities, and commercial clients often require higher insurance limits to reduce financial risk.
We'll help review your contract requirements and determine whether your current coverage meets them.
We'll help review your contract requirements and determine whether your current coverage meets them.
Can I get insured if I'm a one-person business?
Absolutely. Many contractors operate as sole proprietors or single-person businesses.
Insurance can help protect you from liability claims, property losses, and contractual requirements, regardless of your company size.
Insurance can help protect you from liability claims, property losses, and contractual requirements, regardless of your company size.
What happens if I expand the services I offer?
Adding new services may change your risk profile and could require updates to your insurance.
Whenever your business grows or changes, it's a good idea to review your coverage.
Whenever your business grows or changes, it's a good idea to review your coverage.
Why does the type of work I perform affect my insurance?
Insurance companies evaluate risk differently depending on your trade. For example, roofing, electrical work, plumbing, painting, and remodeling each present different exposures.
Providing accurate information about your operations helps ensure appropriate coverage.
Providing accurate information about your operations helps ensure appropriate coverage.
I use my personal truck for work. Is my personal auto insurance enough?
Not always. Using a vehicle for business purposes may require commercial auto insurance depending on how it's used.
We'll help you understand whether your current coverage is appropriate.
We'll help you understand whether your current coverage is appropriate.
Does contractor insurance cover my tools if they're stolen?
It depends on your policy. Many contractors choose additional coverage for tools and equipment because standard policies may have limitations or exclusions.
We'll help you determine the protection that's right for your business.
We'll help you determine the protection that's right for your business.
Should I ask my subcontractors for proof of insurance?
Yes. Requesting a Certificate of Insurance helps confirm that subcontractors carry their own coverage and can reduce potential liability issues on your projects.
It's a simple step that can help protect your business.
It's a simple step that can help protect your business.
If I hire subcontractors, am I automatically covered?
Not necessarily. Hiring subcontractors can affect your liability exposure, and it's important to verify that they're properly insured.
We'll help you understand how subcontractors may impact your insurance program.
We'll help you understand how subcontractors may impact your insurance program.
Does my insurance follow me to every job site?
Generally, yes—but coverage depends on your policy and the type of work you're performing. Different projects, locations, or states may have unique insurance requirements.
We'll help make sure your coverage matches the work you do.
We'll help make sure your coverage matches the work you do.
I only do small jobs. Do I still need contractor insurance?
Yes. Even small projects can result in property damage, injuries, or liability claims. The size of the job doesn't always determine the level of risk.
Having the right insurance helps protect your business regardless of project size.
Having the right insurance helps protect your business regardless of project size.
What is a Certificate of Insurance (COI)?
A Certificate of Insurance, or COI, is a document that summarizes your insurance coverage. It doesn't change your policy, but it provides proof that your business has active insurance.
Many contractors need certificates before they can begin work on a project.
Many contractors need certificates before they can begin work on a project.
Why do so many clients ask contractors for proof of insurance?
Many homeowners, builders, and commercial property owners require proof of insurance before work begins. It helps demonstrate that your business carries the liability coverage they expect and can help protect everyone involved if an accident occurs.
We'll make it easy to provide certificates of insurance when your clients request them.
We'll make it easy to provide certificates of insurance when your clients request them.
What insurance does my contracting business actually need?
Every contractor's business is different, so there isn't a one-size-fits-all insurance policy. The right coverage depends on the type of work you perform, the projects you take on, whether you have employees, and any insurance requirements from your clients or licensing boards.
Many contractors start with General Liability Insurance and then add coverage such as Commercial Auto, Workers' Compensation, Inland Marine (Tools & Equipment), Commercial Property, or Umbrella Insurance based on their business.
When we work with contractors, we take the time to understand how they operate so we can recommend coverage that fits their business—not just a standard package.
Many contractors start with General Liability Insurance and then add coverage such as Commercial Auto, Workers' Compensation, Inland Marine (Tools & Equipment), Commercial Property, or Umbrella Insurance based on their business.
When we work with contractors, we take the time to understand how they operate so we can recommend coverage that fits their business—not just a standard package.
Do I need insurance if I'm a self-employed contractor?
Yes. Even if you're the only person in your business, you're still exposed to risks every time you work on a client's property or job site.
A single accident, property damage claim, or lawsuit could have a significant financial impact. Many clients also require proof of insurance before they'll hire you.
We've helped many independent contractors find coverage that protects both their business and their reputation while meeting customer requirements.
A single accident, property damage claim, or lawsuit could have a significant financial impact. Many clients also require proof of insurance before they'll hire you.
We've helped many independent contractors find coverage that protects both their business and their reputation while meeting customer requirements.
What's the difference between General Liability and Workers' Compensation Insurance?
These two coverages protect against very different risks.
General Liability Insurance is designed to help protect your business if you accidentally cause property damage or bodily injury to someone else while performing your work.
Workers' Compensation Insurance is intended to help cover work-related injuries or illnesses involving your employees, and in many cases, it's required by state law.
When we review a contractor's insurance program, we explain how each coverage works together so there aren't any unexpected gaps.
General Liability Insurance is designed to help protect your business if you accidentally cause property damage or bodily injury to someone else while performing your work.
Workers' Compensation Insurance is intended to help cover work-related injuries or illnesses involving your employees, and in many cases, it's required by state law.
When we review a contractor's insurance program, we explain how each coverage works together so there aren't any unexpected gaps.
Are my tools and equipment covered if they're stolen from my truck or a job site?
Not always. Many contractors assume their tools are automatically covered, but that isn't always the case.
Depending on your policy, you may need specialized coverage—often called Inland Marine or Contractors Equipment coverage—to help protect your tools while they're being transported or used at different job sites.
If your tools are essential to your business, we'll help you review your current coverage and determine whether additional protection makes sense.
Depending on your policy, you may need specialized coverage—often called Inland Marine or Contractors Equipment coverage—to help protect your tools while they're being transported or used at different job sites.
If your tools are essential to your business, we'll help you review your current coverage and determine whether additional protection makes sense.
My customer wants a Certificate of Insurance (COI). What is it?
A Certificate of Insurance, or COI, is a document that provides proof of your insurance coverage. Many property owners, general contractors, and project managers require one before work begins.
We regularly provide Certificates of Insurance for our contractor clients and can help make sure they include the information your customer requests whenever possible.
If you're ever unsure what your client is asking for, we're happy to walk you through it.
We regularly provide Certificates of Insurance for our contractor clients and can help make sure they include the information your customer requests whenever possible.
If you're ever unsure what your client is asking for, we're happy to walk you through it.
Am I covered if one of my subcontractors causes damage?
It depends on the circumstances and how your business is structured.
Hiring subcontractors can create additional liability exposures, especially if they don't carry their own insurance. That's why we often recommend verifying that subcontractors have appropriate coverage before work begins.
We'll help you understand how your policy may respond and discuss best practices for protecting your business when working with subcontractors.
Hiring subcontractors can create additional liability exposures, especially if they don't carry their own insurance. That's why we often recommend verifying that subcontractors have appropriate coverage before work begins.
We'll help you understand how your policy may respond and discuss best practices for protecting your business when working with subcontractors.
Why did my contractor insurance premium increase?
Insurance premiums can change for many reasons, even if you haven't filed a claim.
Factors such as increased payroll, higher annual revenue, larger projects, rising construction costs, industry-wide claims, and changes in the insurance market can all affect your premium.
If your renewal looks different than expected, we're happy to review it with you, explain what changed, and discuss options that may better fit your business today.
Factors such as increased payroll, higher annual revenue, larger projects, rising construction costs, industry-wide claims, and changes in the insurance market can all affect your premium.
If your renewal looks different than expected, we're happy to review it with you, explain what changed, and discuss options that may better fit your business today.
When should I review my contractor insurance?
We recommend reviewing your insurance at least once a year—or sooner if your business changes.
If you've hired employees, purchased new equipment, added vehicles, expanded into new services, or started taking on larger projects, your coverage should be reviewed to make sure it still reflects your business.
Our goal is to help contractors stay protected as their business grows. A quick annual review can often identify opportunities to improve coverage or address potential gaps before they become problems.
If you've hired employees, purchased new equipment, added vehicles, expanded into new services, or started taking on larger projects, your coverage should be reviewed to make sure it still reflects your business.
Our goal is to help contractors stay protected as their business grows. A quick annual review can often identify opportunities to improve coverage or address potential gaps before they become problems.
Our FAQ is built from the questions our clients ask every day, and we're always adding new topics.
If you don't see the answer you're looking for, we'd love to hear from you.
If you don't see the answer you're looking for, we'd love to hear from you.
Whether you're just starting your contracting business, renewing your insurance, or bidding on larger projects, having the right coverage can make a big difference.
At Arthur D. Calfee Insurance Agency, we work with contractors across a variety of trades to help them understand their risks and find coverage that supports their business. If you'd like a personalized review of your contractor insurance, our team is here to help.
At Arthur D. Calfee Insurance Agency, we work with contractors across a variety of trades to help them understand their risks and find coverage that supports their business. If you'd like a personalized review of your contractor insurance, our team is here to help.
