What insurance should a general contractor have?

At minimum: general liability insurance ($1M per occurrence minimum) and workers' compensation insurance for all employees. If the contractor uses subcontractors, verify those subs also carry their own workers' comp. Larger projects may also warrant a contractor's bond and umbrella liability policy.

What is a certificate of insurance and how do I get one?

A certificate of insurance (COI) is a one-page summary document issued by the contractor's insurance company listing policy types, coverage limits, and expiration dates. Ask the contractor to have their insurance agent send the COI directly to you — this prevents the contractor from altering the document.

What's the difference between a contractor's bond and liability insurance?

General liability covers property damage and bodily injury caused by the contractor's work. A contractor's bond (surety bond) is a financial guarantee that the contractor will complete the work as promised and pay subcontractors — it protects against abandonment and non-payment of subs.

Am I liable if an uninsured contractor gets hurt on my property?

Potentially, yes. If a contractor or their worker is injured on your property and lacks workers' compensation coverage, your homeowners insurance may be the only coverage available — and your insurer may pay out and then raise your rates or cancel the policy. Always verify workers' comp before work begins.

Contractor Insurance: Exactly What to Verify Before Hiring in 2026

April 25, 2026

Why Insurance Verification Is Non-Negotiable

Skipping insurance verification is the single riskiest shortcut homeowners take when hiring contractors. An uninsured worker injured on your property, or a contractor who causes a fire or flood while working in your kitchen, can result in liability that exceeds your homeowners policy limits. Verification takes 10 minutes and is completely free.

General Liability Insurance

General liability (GL) insurance covers property damage and bodily injury caused by the contractor's operations — to your home, your neighbors' property, or bystanders. What to require:

Minimum per-occurrence limit: $1,000,000
Minimum aggregate limit: $2,000,000
For projects over $100,000, request $2M per occurrence / $4M aggregate

Request to be named as an additional insured on the policy. This means the contractor's insurance company must notify you if the policy is cancelled or lapses during your project.

Workers' Compensation Insurance

Workers' comp covers medical expenses and lost wages for workers injured on your job site. It's required by law in almost every state for contractors with employees. Critical points:

A sole proprietor with no employees may be legally exempt from carrying workers' comp — but they're still working on your property. Verify their homeowners policy covers work-related injuries or require them to carry an individual policy.
Verify that workers' comp certificates cover the policy period that includes your project's expected duration.
Ask whether subcontractors carry their own workers' comp. If not, the GC's policy should extend to cover them.

Contractor's License Bond

A surety bond is different from insurance. It's a three-party agreement where a bonding company guarantees that the contractor will fulfill their contractual obligations. If the contractor abandons the project, fails to pay subcontractors (exposing your property to mechanic's liens), or fails to correct defective work, you can make a claim against the bond.

Many states require contractors to carry a license bond as a condition of licensure. Minimum bond amounts vary:

California: $25,000 CSLB bond required for all licensed contractors
Texas: Bond requirements vary by classification
Florida: $0 state bond required (but county jurisdictions may require them)

For larger projects, consider requiring a performance and payment bond — a project-specific bond that guarantees both completion and subcontractor payment. These cost 1–3% of project value and are standard on commercial projects; less common but available on residential work.

How to Verify Insurance

Follow this verification process before signing any contract:

Request a certificate of insurance (COI) from the contractor and ask them to have the agent send it directly to your email.
Confirm the policy is current: check the expiration date against your project's expected completion date.
Verify the listed contractor name matches the entity you're contracting with.
Confirm coverage limits meet your minimums.
Call the insurance company's verification line (listed on the COI) to confirm the policy is active — this is especially important if the policy expiration date is soon.
Verify the contractor's license and bond status through your state licensing board's online lookup tool.

Builder's Risk Insurance

For major additions, gut renovations, or new construction, consider purchasing a builder's risk policy during the construction period. Builder's risk covers damage to materials and work in progress from fire, theft, vandalism, and weather. Your homeowners policy may have gaps during construction — confirm with your insurer before the project starts.

Browse licensed and insured contractors by city — our listings flag contractors with verified insurance status so you can filter for properly covered professionals.

Frequently Asked Questions

What insurance should a general contractor have?: At minimum: general liability insurance ($1M per occurrence minimum) and workers' compensation insurance for all employees. If the contractor uses subcontractors, verify those subs also carry their own workers' comp. Larger projects may also warrant a contractor's bond and umbrella liability policy.
What is a certificate of insurance and how do I get one?: A certificate of insurance (COI) is a one-page summary document issued by the contractor's insurance company listing policy types, coverage limits, and expiration dates. Ask the contractor to have their insurance agent send the COI directly to you — this prevents the contractor from altering the document.
What's the difference between a contractor's bond and liability insurance?: General liability covers property damage and bodily injury caused by the contractor's work. A contractor's bond (surety bond) is a financial guarantee that the contractor will complete the work as promised and pay subcontractors — it protects against abandonment and non-payment of subs.
Am I liable if an uninsured contractor gets hurt on my property?: Potentially, yes. If a contractor or their worker is injured on your property and lacks workers' compensation coverage, your homeowners insurance may be the only coverage available — and your insurer may pay out and then raise your rates or cancel the policy. Always verify workers' comp before work begins.