What Insurance Should a Contractor Carry?

When you hire a contractor, their insurance is really your insurance. If a worker is hurt on your property or a mistake damages your home, the right policies decide whether the contractor's coverage pays or whether the bill lands on you. This guide explains the coverage a professional contractor should carry, how to request proof, and how to read it so you are not taking anyone's word for it.

The core policies to expect

Most established contractors carry a few standard types of coverage. The exact mix depends on the trade and the size of the business, but these are the ones that matter to you as a customer.

• General liability (GL) covers third-party property damage and bodily injury caused by the contractor's work. If a ladder goes through your window or a burst line floods a room, GL is what responds. This is the single most important policy to confirm.
• Workers' compensation covers the contractor's employees if they are injured on the job. Without it, an injured worker may look to the property owner. Coverage requirements vary by state and by how many employees a business has, so this is worth confirming directly.
• Commercial auto covers vehicles used for the business. It matters more than people expect, since a lot of job-site activity involves loading, hauling, and driving to and from your property.
• Surety bonds are not insurance in the strict sense, but they function as a financial guarantee that the contractor will complete the work and meet code. Some jurisdictions require them for licensing or permits.

Typical coverage amounts

Coverage limits vary by trade and project size, and the figures below are general ranges rather than guarantees for any specific job.

• General liability commonly runs from about $1 million per occurrence up to $2 million aggregate for residential work. Larger or higher-risk projects may carry more.
• Workers' compensation limits are typically set by state requirements rather than chosen freely.
• Bond amounts are usually set by the local jurisdiction that requires them.

Higher-risk trades tend to carry more coverage. A roofing crew working at height or an electrical contractor working inside your walls generally carries robust liability limits, and it is reasonable to expect that.

How to request a certificate of insurance

The document that proves coverage is called a certificate of insurance, or COI. Do not accept a photo the contractor took of their own paperwork. Instead:

1. Ask the contractor for the name of their insurance agent or broker.
2. Request that the agent send the COI to you directly.
3. Confirm the policy is active as of your project dates, not expired months ago.

Having it come from the insurer or agent closes the most common loophole, which is a policy that lapsed or was cancelled after the certificate was first printed.

How to read a COI

A certificate looks dense, but you only need to check a handful of fields:

• Named insured should match the exact business name on your contract. A mismatch here is a red flag.
• Policy type should list general liability and, where relevant, workers' compensation and auto.
• Limits should show the per-occurrence and aggregate amounts.
• Effective and expiration dates should cover the full span of your project, with room for delays.
• The certificate holder is where your name can appear so you have a record tied to the job.

If anything is blank, expired, or does not match the business you are hiring, pause and ask questions before work begins.

Ask to be named additional insured

For larger projects, you can ask to be listed as an additional insured on the contractor's general liability policy. This extends certain protections of their policy to you for claims arising from their work, and it gives you standing if a dispute reaches their insurer. Not every job warrants it, but for significant renovations it is a reasonable request, and a professional contractor will not be thrown by it.

Why this protects you

Insurance is the difference between an accident being the contractor's problem and being yours. If an uninsured worker is injured on your property, or uninsured work damages a neighbor's home, you can end up exposed to costs you never agreed to. Confirming real, current coverage up front is one of the highest-leverage things you can do before signing anything.

How CertiTrades handles it

Verifying insurance is exactly the kind of step that is easy to skip and painful to skip. CertiTrades checks that a contractor's insurance is real and current rather than self-reported before they ever reach you, alongside license and review checks. You can see what we verify on our trust page and how the whole process works on how it works.

When you are ready to move forward, request a quote and you will get one exclusive quote from a verified pro, never resold to anyone else. The insurance question is already handled, so you can focus on the work itself.