PFTN Buyer's Guide

What Insurance Does a Contractor Need? A Buyer's Guide

The core coverages every contractor needs to work and win bigger jobs — general liability, workers' comp, commercial auto, builders risk, and additional insured requirements.

By Ryan Mefford · President & Risk Advisor · Peoples First Tennessee

For contractors, insurance isn't just protection — it's a requirement to bid. The general contractor, the owner, and the lender all dictate what you must carry before you set foot on site. This guide covers the coverages that get you on the job and keep you there.

The coverages that get you on the jobsite

General liability

The baseline. Covers third-party bodily injury and property damage from your operations. Nearly every contract and every GC will require it, usually with specific per-occurrence and aggregate limits.

Workers' compensation

Required in Tennessee for construction employers with one or more employees. Beyond the legal mandate, it is what keeps an injured worker's medical bills — and a potential lawsuit — off your balance sheet.

Commercial auto

Trucks, trailers, and equipment haulers need commercial auto liability and physical damage. Personal policies exclude business use, so a work truck on a personal policy is a claim waiting to be denied.

Builders risk

Covers the structure under construction — materials, fixtures, and work in progress — against fire, wind, theft, and water while the project is exposed. It fills the gap before a completed-project property policy takes over.

The clause that wins or loses bids: most contracts require you to name the GC and owner as additional insured and to carry a waiver of subrogation. Getting these endorsements right is often the difference between a clean certificate and a rejected one.

Buy for the jobs you want, not just the ones you have

The contractors who win bigger work are the ones whose insurance program already meets bigger requirements — higher limits, umbrella coverage, and clean certificates issued the same day a GC asks. Treating your program as a sales asset, not just a cost, is what lets you say yes to the next tier of project.

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