Frequently Asked Questions about Contractor Insurance

Can contractor insurance cover damage caused at a customer’s property?

General liability insurance may respond to certain covered claims involving accidental property damage or bodily injury. Coverage depends on how the incident occurred and the policy’s conditions, exclusions, limits, and deductible.

Are tools and equipment covered while transported between jobsites?

Coverage may be available for eligible tools and equipment stored at a shop, carried in a vehicle, or used at a jobsite. Texas contractors should review applicable limits and requirements, particularly for theft.

Does contractor insurance cover problems discovered after work is completed?

Products-completed operations coverage may apply to certain covered claims arising after a project is finished. It should not be assumed to cover faulty workmanship, replacing defective work, or every construction-related dispute.

Are subcontractors covered by a contractor’s insurance?

Subcontractors are not necessarily protected under the hiring contractor’s policies. Written agreements, certificates of insurance, additional insured requirements, and subcontractor exclusions should be reviewed carefully.

Does a contractor need commercial auto insurance?

Commercial auto insurance may be appropriate when vehicles are used to transport employees, tools, materials, or equipment for work. Personal auto policies may limit or exclude certain business-related uses.