A Bird’s Eye View on Contractor Insurance

Q: What GL limits do I actually need as a contractor?

A: Statutory minimums vary by state — Arizona requires $750K to $1M depending on your ROC license class, Idaho requires $300K for registration, and Montana has no single statewide minimum. But statutory minimums are rarely what the market requires. Most GCs, project owners, and lenders in all three states require $1M to $2M per occurrence before they’ll allow you on site. High-value residential projects and commercial builds frequently require $5M, achieved by adding an umbrella above your primary GL. We structure your limits to meet both the regulatory floor and the market requirement — they’re often different numbers.

Q: Why do I need Contractor’s E&O if I already have General Liability?

A: GL contains a professional services exclusion — it will not cover a claim arising from advice, design, specification, or project management work, even when that work is part of a construction project. If you’re doing any design-build work, reviewing submittals, specifying products, sizing systems, or writing scope documents, that exposure sits outside your GL. Contractor’s E&O covers it. In active construction markets like Arizona’s design-build sector and Idaho’s Treasure Valley growth corridor, this gap is catching contractors off guard regularly. E&O is typically more affordable than people expect and far less expensive than an uncovered professional liability claim. 

Q: How quickly can you get me a certificate of insurance?

A: Same day in most cases — often within the hour if your policy is active and the request is standard. Additional insured endorsements with specific language take a little longer, but we handle it directly. No call centers, no ticketing systems. We also coordinate certificates across all three states for contractors with multi-state registration requirements. 

Q: Do my tools and equipment need separate coverage from my GL?

A: Yes. GL only covers third-party bodily injury and property damage you cause — it does not cover your own tools, equipment, or materials. You need a separate inland marine policy (tools & equipment floater). Commercial auto may cover equipment in a locked vehicle in some cases, but job site coverage requires the floater. This is one of the most common gaps we find in contractor programs that came from another agency. 

Q: I was declined by a standard carrier. Can you still help?

A: Frequently. We have E&S surplus lines access through our specialist Terri Gillespie — carriers that take on higher hazard classifications, newer businesses, and contractors with prior claims that standard markets won’t touch. Sometimes E&S is actually more competitive for your class of work than standard admitted markets. We don’t stop at the first decline.

Q: Can you insure me if I use subcontractors?

A: Yes — but how you structure it matters. We’ll walk you through requiring subs to carry their own GL and add you as additional insured, how your policy handles uninsured sub work, and how audit-based GL policies settle at year-end. This is one of the most common coverage gaps we catch for contractors switching from another agency, in all three states.

Q: What’s the difference between a BOP and a standalone GL for contractors?

A: A BOP bundles GL with commercial property coverage, designed for businesses with a fixed

commercial location. For most contractors operating out of a truck or home office, a standalone GL is better — the property component of a BOP usually adds cost without adding value. We’ll quote both when it’s a close call and show you exactly what you’re getting for the difference in premium. 

Q: Do you handle WC for crews with variable headcount?

A: Yes. We work with carriers flexible on audits and mid-term adjustments for crews that fluctuate seasonally or by project. Pay-as-you-go WC options are available if cash flow management matters — premium based on actual payroll rather than upfront annual estimates. This applies in all three states, though Montana’s WC market has specific placement requirements we handle on your behalf. 

Q (ARIZONA): What does Arizona’s ROC require for a contractor’s license?

A: The Arizona Registrar of Contractors requires a surety bond and — if you have employees — workers’ compensation insurance. Bond amounts range from $1,000 to $15,000 depending on your license type and qualifier classification. GL is not mandated by the ROC itself but is required by virtually every GC, developer, and lender before you can work on their projects. Arizona’s statute of repose gives claimants eight years on residential construction defect claims and two years on commercial — making completed-operations coverage and tail coverage important planning considerations. 

Q (IDAHO): Why does my GL policy cancel my Idaho contractor registration if it lapses?

A: Idaho is one of the few states that uses your general liability policy as the financial guarantee for contractor registration, rather than requiring a separate surety bond. Your policy is filed with the Idaho Contractors Board as part of your registration. If it lapses, is cancelled, or drops below the $300,000 single-limit minimum, the board treats your registration as non-compliant — effectively invalidating your right to work until coverage is reinstated. We monitor policy status and flag renewal deadlines proactively for Idaho contractors so your registration doesn’t lapse over a coverage gap. 

Q (MONTANA): Can I use my existing WC policy when working in Montana?

A: No — and this is the most expensive compliance mistake for contractors working across state lines. Montana law does not allow out-of-state workers’ compensation coverage to satisfy Montana construction requirements. Your Arizona or Idaho WC policy does not cover your crew on a Montana job site. You need a Montana-specific WC policy in place before work begins — registration with the Montana DLI Construction Contractor program also requires proof of that Montana-specific coverage. We place Montana WC before your crew crosses the state line.