If you're a contractor, one mistake or accident can cost you everything. A single uninsured job site injury, an unlisted vehicle in an accident, or a subcontractor without coverage can wipe out years of work. This checklist helps make sure your business is properly protected and not missing critical coverage.
Essential Coverages
Make sure you have all four of these in place before you take on another job.
General Liability (GL)
RequiredCovers property damage and bodily injuries on the job. This is the foundation of any contractor policy — required by most general contractors and project owners before work begins.
Workers Compensation
Often Required by LawCovers employee injuries, medical bills, and lost wages. In KY, TN, and VA, workers comp is required by law once you hit the employee threshold — and construction thresholds are stricter.
Commercial Auto
Required for VehiclesCovers work trucks, vans, and job vehicles. Personal auto insurance will not cover vehicles used for business purposes — every vehicle used on the job needs to be listed.
Commercial Property / Equipment
EssentialProtects tools, equipment, and buildings from fire, theft, and damage. Make sure your equipment schedule is accurate and up to date — unlisted equipment may not be covered.
Recommended Add-Ons
Depending on your operation, you may also need these coverages. Don't skip them to save money — they exist for the claims that hurt the most.
Umbrella Insurance
Provides extra liability limits above your base GL and auto policies. For contractors on large projects or with significant assets, umbrella coverage is critical protection against catastrophic claims.
Inland Marine
Covers tools and equipment while in transit or at job sites away from your primary location. Standard property policies often exclude equipment that's off-premises.
Builders Risk
Covers projects while under construction — including materials, fixtures, and the structure itself. Required on most commercial construction contracts.
Pollution Liability
For contractors with environmental exposure — excavation, demolition, fuel storage, or hazardous materials. Standard GL policies typically exclude pollution claims entirely.
Business Protection Checklist
Go through each category and make sure every item is checked off. If anything is missing, it's time to call your agent.
Employees & Classification
- All employees are properly classified on your workers comp policy
- Employee count is accurate and up to date
- Seasonal and part-time workers are accounted for
Subcontractors
- All subcontractors have their own general liability insurance
- All subcontractors have workers comp coverage
- Certificates of insurance are on file for every sub
- Written subcontractor agreements are in place
Equipment & Vehicles
- Equipment schedule is accurate and reflects current values
- All work vehicles are listed and correctly rated
- Newly purchased equipment has been added to the policy
- Leased or rented equipment is covered
Coverage Limits
- GL limits are high enough for the size of your projects
- Auto liability limits meet contract requirements
- Workers comp limits are appropriate for your payroll
- Umbrella or excess coverage is in place for large projects
Policy Review
- Policy has been reviewed in the last 12 months
- Coverage limits have been updated as the business has grown
- Exclusions have been reviewed and understood
- Premium audit results have been reviewed for accuracy
Final Tip
The cheapest policy usually leaves gaps. Make sure your coverage actually protects your business — not just your budget. A single uncovered claim can cost more than years of premium savings.
Not Sure If You're Fully Covered?
Summit Appalachia Insurance offers free policy reviews for contractors across KY, TN, VA, and all 50 states. We'll go through your current coverage and find the gaps before a claim does.