Most states that require contractor licensing mandate general liability insurance as a condition of licensure. Minimum limits vary from $100,000 in some states to $1,000,000 or more in others. However, contractual requirements from project owners typically demand $1M per occurrence and $2M aggregate regardless of state minimums. Additional insured endorsements naming the project owner and general contractor are standard contract requirements. Primary and noncontributory wording and waiver of subrogation endorsements are frequently required. Completed operations coverage extending beyond project completion is essential for construction liability protection.

Many states require surety bonds as a condition of contractor licensing. Bond amounts range from $2,500 in some states to $25,000 or more. Public works projects universally require bid bonds, performance bonds, and payment bonds under the federal Miller Act for projects over $150,000 and under equivalent state little Miller Acts. Bond capacity depends on your financial strength, credit, and track record. Establishing bond relationships early in your business development is important because bonding capacity takes time to build.

Beyond the core coverages, many states and project types require additional insurance. Pollution liability is mandatory for environmental remediation and certain industrial construction projects. Professional liability covers design-build contractors and those providing engineering services. Umbrella or excess liability policies provide limits above primary GL, auto, and workers comp, with $5M-$10M commonly required on commercial projects. Inland marine coverage for tools, equipment, and materials in transit is not legally required but is essential for protecting mobile construction assets. Builders risk is typically required by lenders and project contracts.