Contractor Insurance Checklist

The Ultimate Contractor Insurance Checklist

As a contractor, your business faces unique risks every day—from property damage to employee injuries. Use this checklist to ensure your business is fully protected before you step onto the next job site.

1. General Liability (The Foundation)

Every contractor needs this. It protects you if you accidentally damage a client's property or if a third party is injured because of your work. Most GCs and property owners will require a $1M/$2M limit (meaning $1M per occurrence and $2M total for the year).

2. Tools & Equipment (Inland Marine)

Standard General Liability does NOT cover your tools. An Inland Marine policy protects your power tools, hand tools, and specialized equipment whether they are in your truck, at the shop, or on the job site. If your livelihood depends on your tools, this is a must-have.

3. Workers' Compensation

In North Carolina, if you have 3 or more employees, you are legally required to carry Workers' Comp. Even if you're a solo operator, many GCs will require you to have it (or a waiver) before you can sub for them. It covers medical bills and lost wages for work-related injuries.

4. Commercial Auto

If you're using a truck or van for business—hauling materials, tools, or traveling between jobs—your personal auto policy likely won't cover an accident. Commercial auto provides higher liability limits and covers business-use vehicles.

5. Professional Liability / Errors & Omissions

If you provide design work or consulting (like an HVAC tech designing a system layout), you may need E&O coverage. It protects you if a client claims your professional advice caused them financial loss.

6. Umbrella / Excess Liability

If you're working on high-value projects or for large commercial clients, they may require liability limits higher than $1M. An Umbrella policy provides an extra layer of protection over your GL and Auto policies.