Contractors Insurance



The Insurance requirements for Contractors can be very complicated.  This page is designed to provide a very clear and concise description about the types of Insurance and  Bonds you will need in order to protect your Business and satisfy your clients and the municipalities where you will work. 

Scroll down just a bit and you will find more details for specific trades (e.g. Electricians, HVAC and Plumbers).


Most importantly, after you review, be certain to contact our agency and we will work with you to design the best Contractors Insurance coverage at the right price for your Business.


The Insurance You Will Need 



1. Contractors Liability Insurance:

Unfortunately all businesses are subject to lawsuits. No matter how careful you are or how well trained your employees are, accidents still happen. Contractors General Liability Insurance will protect your company from accidents that result in property damage, bodily injury and more.

Required Limits:

  • If you are a Commercial Contractor,  you will likely be required to have a minimum of:
    • $1,000,000 Each Occurrence Limit (the most the company will pay per claim) and
    • $2,000,000 General Aggregate, (the most the company will pay per policy term)

  • If you are not a Commercial Contractor, I would still recommend these limits, as the premium difference with lower limits is not that significant.

Contractors Liability Insurance Premium Determination:

The Premium charged by the Insurance Company will be determined by your estimated annual payroll for your Contractors during the policy term and subject to the actual (since you can only estimate your payroll at the beginning of the policy term) payroll at the end of the policy term  (see the following video for more details).


Potential Significant General Liability Insurance Exclusions or Limitations:

It is not uncommon for Endorsements that significantly reduce coverage for Contractors or worse, eliminate coverage all together, to be included on General Liability Policies.   The worst possible time to find out about your policy limitation is at the time of a claim.   

The following page details some of the more common Limitations and Exclusions that could be on a Contractors Insurance Policy: 

Better still, we can work with you to design a policy that eliminates these concerning endorsements.  



Contact us today to get the right Liability Protection for your Business:
Ph. 636-519-0059 or 


2. Workers Compensation for Contractors

Most Contactors, are required to have Workers’ Compensation in Missouri with even with just one employee (Non-contracting employers are required with 5 or more employees).

Business Owners that do not have Contractors Work Comp coverage may be subject to a significant financial penalty from the State.However, even more importantly, any Missouri Employer without Work Comp coverage is subject to Civil Suits brought against them by their injured employees.

It only makes sense to have Contractors Workers Compensation coverage to protect your employees and your business. 





Contact us today to secure the proper Workers Comp Coverage for your Business:
Ph. 636-519-0059 or 






3. Bonds for Contractors

Contractors License and Permit Bonds:

license and permit bond guarantees that your business will operate in compliance with the building codes established by State, County, City, etc. The bond is a requirement to receive your Contracting License from a Municipality. 

Using Electrical Contractors as an example:

  • Both St. Charles County and St. Louis County, MO require Electrical Contractors to have a $10,000 License and Permit Bond
  • A good annual premium estimate is about $100 per Bond
  • With decent credit, we can turn these bonds around for you very rapidly



Union Contracting Employers:

If you are a new Business and a Union Electrician you will likely be required, by the Union, to have a Wage and Benefits Bond (aka Wage and Welfare Bond).

This Bond is a guarantee that required wages will be paid to all employees and benefits (agreed to in the Collective Bargaining Agreement) will be paid to the Union. 

If a MO Union Employer does not compensate employees or pay agreed benefits to the Union, the Union can seek recovery from the Bond Carrier.

A common required bond limit is $5,000 per employee with an approximate cost range of $25 - $50 per $1,000 of coverage (e.g. a $10,000 Bond will be roughly $250 - $500) for Employers with good credit.

Wage and Welfare Bonds are considered high risk as they account for more claims relative to other types of Bonds.  Accordingly, if an Employer has poor credit, this Bond could prove challenging to obtain.



Your Clients and Municipalities will want proof that your Business is Insured:

The Municipalities ,where you are licensed to operate, will require you to provide proof of Insurance. 

Many Clients (especially Commercial Clients) will also require you to provide proof of  Insurance before you are allowed to start a project (and maybe again before they will pay you for your work). 

To do this, you will simply call or email us and let us know who requires proof of Insurance and we will send your Certificate of Insurance to your client and copy you.

The following video illustrates a sample Certificate of Insurance (COI) and what your client will be looking for on the COI.


Whether you are just staring your business or have been operating for years, contact our office today to get the best Protection for your Business:

Ph. 636-519-0059




What Clients Say

Our company has benefited greatly by working with Dan and his agency.  As a small business owner, I find myself being pulled in many directions...

-Roxanna - Unified1 Data Systems


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Additional Coverage Considerations



Additional Contractors Insurance Requirements:

The following page provides details on other Lines of Coverage you may want to consider for your Business or may be required to have contractually to start a project.

Additional Insurance For Contractors 


Information for Specific Trades


Insurance for Plumbers




Insurance for HVAC Contractors




Insurance for Electricians