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Contractor insurance types, explained in plain English

Educational overview only, not insurance advice or a recommendation of any policy or carrier. Coverage depends on the actual policy wording. Talk to a licensed agent about your business.

General liability (GL)

Generally covers claims that your work caused bodily injury or property damage to others. Clients and general contractors commonly ask subs for a GL certificate before work starts.

Workers' compensation

Covers employees' work-related injuries under state law. In Idaho, most employers must carry it; certain owners are exempt for their own employment (Idaho Code §72-212). See our Idaho audit guide.

Commercial auto

Covers vehicles used for business. Personal auto policies often exclude or limit business use, so ask your agent.

Inland marine (tools and equipment)

Often used to cover tools and equipment that move between job sites.

Builder's risk

Covers a structure under construction, usually for the project's duration.

Umbrella or excess liability

Adds limits above underlying policies such as GL and auto. Some contracts require it.

Professional liability (E&O)

Relevant for design or advice work. Many trade contractors do not carry it; some design-build firms do.

Certificates of insurance (COIs)

A COI summarizes a policy at a point in time. It does not change coverage. Check the named insured matches the business you pay, the policy dates cover the work, and any additional-insured wording your contract requires. Track them with our free tracker.

Shopping for coverage? [AFFILIATE LINK PLACEHOLDER: ERGO NEXT Insurance quote, pending program approval] Comparing quotes from more than one carrier or an independent agent is common practice.