Contractor insurance, explained in plain English

We explain what each coverage does, what your licensing board and your contracts each require, and how to find a licensed agent who has written your trade before. Licensing has no federal regime, so the honest answers are state-shaped, and this site is built that way.

Start here

Handyman is the place to start: the licensing question answered honestly and state by state.

Handyman insurance

The grey zone explained: whether you need coverage, what a sole operator carries, and what actually moves the premium.

Rules by state

Five states, five different answers for a handyman: a dollar threshold, a task list, two municipal regimes, and one outright insurance mandate. Texas now has a hub of its own, with handyman, HVAC, and electrician pages under it.

Trades we cover

Business-framed, one trade at a time. Every trade below is live. The trades section sorts them by what decides the coverage: a licensing board, a contract, or the hazard in the work.

Frequently Asked Questions

What insurance does a contractor need?
The working set for most trades: general liability for injury and damage to others, coverage for tools and equipment that travel, commercial auto for business vehicles, and workers compensation once there are employees, which nearly all states require. Higher-hazard trades weigh the workers compensation piece heaviest, and contract work adds the certificate-of-insurance rhythm: proving coverage before each job starts.
Are contractor insurance requirements federal or state?
State, and often municipal. There is no federal contractor licensing regime: states decide which trades are licensed and what a license demands, and in states like Texas and Illinois, general contracting is regulated by cities rather than the state at all. Some states attach insurance to the paperwork directly, New Jersey requires half a million dollars of general liability coverage to register as a home improvement contractor, which is why this site answers requirements questions state by state.
Is a license bond the same as insurance?
No. A bond is a three-party arrangement that protects the people you work for: if you fail obligations the bond covers, they recover from the surety, and the surety recovers from you. Insurance protects your business. Many licensing regimes require both, and neither substitutes for the other.
Why do certificates of insurance matter so much in the trades?
Because contract work runs on them. General contractors, property managers, and commercial clients require proof of coverage, often naming themselves as additional insured, before a sub sets foot on site. Fast, accurate certificates are an operational capability in this industry, and worth asking any prospective agent about directly.