Contractor insurance that keeps up with the job site.
How contractor policies work, what clients and general contractors ask for, and where coverage tends to run short.
Quick answer: Contractor insurance usually starts with general liability, including completed operations for claims that surface after a job ends. Workers’ comp, coverage for tools and equipment, and commercial auto are the other common pieces.
Most contractors carry general liability first, because clients, general contractors and permit offices ask for proof of it. Completed operations matters as much as the on-site coverage: a leak or failure can show up years after the work is signed off.
What a contractor program usually includes
The mix depends on your trade, crew size and whether you hire subcontractors.
| Coverage | Responds to | Check before signing |
|---|---|---|
| General liability | Injury or property damage to others during the job | Limits your contracts require |
| Completed operations | Claims after the job is finished | Aggregate limit and how long it applies |
| Workers' compensation | Crew injuries on the job | Class codes and payroll by trade |
| Tools and equipment | Theft or damage to tools, including on job sites | Scheduled vs. blanket limits |
| Commercial auto | Trucks and vans used for work | Who drives and what is hauled |
| Umbrella | Extra limits above liability and auto | Required by larger contracts? |
Job-site claims a CGL answers, and the ones it does not
Often covered
- Damage to a client's property during the job
- A visitor injured on site
- Damage that shows up after the job is complete
- Defense costs for covered lawsuits
- Work done by your subcontractors, under the subcontractor exception
Often excluded
- Fixing your own faulty work
- Injuries to your own crew (workers' comp)
- Tools, unless inland marine coverage is added
- Pollution, unless added
- Work outside your stated classification
Three common ways contractors set up coverage
Your contracts often decide which one fits.
Stand-alone General Liability
The most common starting point for trades. It is what certificates of insurance usually show first.
Business Owners Policy
Some lower-risk trades with a shop or office may qualify for a BOP, which adds property coverage.
Inland Marine
Covers tools and equipment that move between job sites, which a standard property policy may not.
License and permit rules vary by state and city
Licensing boards, right-of-way permits and public contracts each set insurance minimums. The California and San Diego guides list them.
What contractors ask us about insurance.
What insurance does a contractor need?
Most contractors carry general liability, and many clients require it. Employers need workers’ comp, and contractors with work vehicles need commercial auto. Tools coverage and an umbrella are common additions.
What is completed operations coverage?
It covers injury or damage caused by your work after the job is finished. Construction defect claims can surface years later, so this part of the policy carries weight for contractors.
Does general liability pay to fix my own work?
Generally not. The “your work” exclusion removes the cost of repairing your own work, though there is an exception for work done on your behalf by subcontractors.
What is an additional insured endorsement?
It extends your liability coverage to a client or general contractor for claims tied to your work. Contracts often name specific endorsement forms, so it helps to share the contract early.
Are my tools covered on a job site?
Usually only if you add inland marine or contractor equipment coverage. Standard property coverage tends to focus on items at your listed location.
Do subcontractors need their own insurance?
General contractors commonly require subs to carry their own liability and workers’ comp. An uninsured sub can show up on your own audit as added payroll.
NPN #20649362 · Rock Meadow Insurance Services · Last updated November 2026
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