Home Improvement Contractor - Licensed Contractors

Contractors, how much liability insurance do you carry?

Public Comments

1. You will need to carry enough to protect your assets - however, I have never seen too many job requirements that are LESS than $500,000 Combined Single Limit (CSL.) And once you get that high, it's not much more to carry $1 Million CSL. Depending on your rate class (what type of contractor ARE you?), you will have a particular rate per $100 payroll. Then they multiply your payroll by your rate to get an annual premium for your coverage. The more the payroll, the more it costs you. This will also be for any subs you hire. Just because you may pay folks on a 1099, it STILL counts for your insurance. Just be sur e to call them "contract labor" and NOT "sub-contractors" - unless you actually hire sub-contractors...then if you DO, be sure that they furnish YOU a Certificate of Insurance from THEIR insurance - so you don't have to pay for their payroll exposure. Just find yourself a local independent agent and he can determine just what is required in your area. If you have employees or workers that you are responsible for, you may need Workers Compensation insurance as well. Good luck and I hope this helps!
2. Most contractors carry $1,000,000 of coverage, for two reasons: 1. the price difference between $100,000 and $1,000,000 is ones of dollars and 2. most anyone they enter into a formal contract with - ie, general contractors or businesses where they might do work or get referrals, are going to require at LEAST $1,000,000 of general liability coverage.