What Insurance Does a Contractor Need?
From general liability to tools, workers’ comp, and the certificates your clients demand — the coverages most contractors and tradespeople actually carry.
General liability
This is the foundation. It covers third-party bodily injury and property damage on the job — damaging a client’s property or someone getting hurt around your work. General contractors, builders, and most clients will require it before you set foot on site.
Tools & equipment (inland marine)
Your general liability doesn’t pay to replace your own gear. Tools and equipment coverage (a type of inland marine) protects the tools, equipment, and materials you haul to jobs against theft and damage — a big deal when your livelihood is in the truck.
Workers’ compensation
Once you have employees — and in many states, even some subcontractors — workers’ compensation is legally required. It covers medical bills and lost wages if a worker is hurt on the job, and general contractors will ask for proof of it.
Commercial auto and the rest
Trucks and trailers used for the business need commercial auto, not a personal policy. Beyond that, contractors often need additional-insured endorsements for the GCs and clients who require them, surety or license bonds in some trades, and umbrella coverage for bigger jobs.
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FAQs
Do I need insurance if I’m a one-person operation?
Usually yes — general liability is commonly required by clients and GCs even for solo tradespeople, and it protects you if a job goes wrong.
What’s an “additional insured,” and why do clients ask for it?
It’s an endorsement that extends your liability coverage to the client or general contractor named in your contract. It’s one of the most common contract requirements — we can add it and issue the certificate fast.
Can you issue a certificate of insurance the same day?
Often yes. If you already have a policy we can usually produce a COI within the hour; if you need coverage first, many policies bind the same day.
This guide is general information, not legal advice or a coverage promise. Coverage varies by policy, carrier, and state — a licensed agent confirms what applies to you.