Contractor's Insurance Basics

Often the case, insurance and bonding requirements are not always mandatory by state law so be on the lookout for coverages. The fact, of having insurance, may not be adequate to all.


Builder's Risk - Covers theft on the jobsite and damage to the structure, the policy applying to new homes being built.

General Liability - For bodily injury, property damage.

Business Auto Liability - Accident coverage for company vehicles only.

Product Liability - Covers injury or damage to persons or property arising from a product.

Workers Compensation - Covers injured workers usually with base low amounts in the event of an accident/injury.

Umbrella Liability - Additional liability coverage for an existing policy.

Tail Coverage - For after project completion.

The Do-It-Yourselfer may want to check on the medical policy and just what it might cover, while accounting for any policy overlap(s).

Check with your agent for information on any temporary policies for theft, damage or loss, and for confirming all coverages. Note if your homeowners policy affords coverage for bodily injury. Consider asking for verification of medical coverage for any person working on your property. Under certain conditions you may be held liable regardless of what common sense appears to dictate. Homeowners being sued for bodily injury are a common occurrence.