Billy Construction Insurance Guide
Insurance Requirements
by Construction Trade
GCs need different minimums from electricians than from demolition contractors. This is the definitive reference — CGL, workers’ comp, auto, umbrella, and specialty coverages for 15+ trades, all in one place.
Not all subcontractors carry the same risk — and the insurance requirements you set should reflect that. A drywall crew operates in a fundamentally different risk environment than a demolition team or an electrical contractor working on energized systems.
This guide gives General Contractors, project owners, and risk managers a trade-by-trade breakdown of standard insurance minimums so you can write tighter subcontractor agreements, review COIs with confidence, and know exactly when a sub is underinsured for the scope they’re taking on.
Important: The limits below reflect widely-used industry minimums as of 2025. Your contracts, project size, owner requirements, and state law may require higher limits. Always consult your broker and legal counsel when setting final requirements.
Jump to a Trade
Electricians & Electrical Contractors
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| Commercial General Liability (CGL) | $1M / $2MPer occurrence / aggregate | Require $2M/$4M on larger commercial or industrial projects. Electrical work on energized systems demands higher thresholds. |
| Workers’ Compensation | StatutoryEmployer’s liability $500K–$1M | Electrocution risk is among the highest of any trade. Statutory limits are the absolute floor; confirm employer’s liability riders are in place. |
| Commercial Auto | $1M CSLCombined single limit | Required for any crew using vehicles to transport tools, wire, or personnel to job sites. |
| Umbrella / Excess | $2M–$5M | Require $5M+ on high-voltage, data center, or healthcare facility projects where electrical failure can cascade into multi-million-dollar losses. |
| Professional Liability (E&O) | $1M / $2M | Required for design-build electrical scopes, engineering-review work, or arc flash studies. |
Specialty Coverages to Require
GC Watch-Out: Verify that the CGL policy does not contain a blanket “electrical work” exclusion. Some substandard policies carve out arc flash, power surges, or underground conduit damage — each of which is a real exposure on commercial jobs.
Plumbing Contractors
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Water damage from plumbing failures is routinely one of the costliest construction claims. Consider $2M/$4M on multifamily, hotel, or healthcare projects. |
| Workers’ Compensation | StatutoryEL $500K–$1M | Trenching, confined space entry, and gas line work elevate injury risk considerably above average. |
| Commercial Auto | $1M CSL | Plumbers typically haul heavy pipe stock; confirm non-owned and hired auto is endorsed. |
| Umbrella / Excess | $2M–$5M | Catastrophic pipe burst in a completed building can exceed primary CGL limits rapidly. |
| Contractors Pollution Liability | $1M / $2M | Mandatory for any work involving gas lines, underground fuel piping, or sewer systems. |
Specialty Coverages to Require
GC Watch-Out: Completed operations coverage is critical. A plumbing defect may not manifest as water damage until months after project closeout — well after a standard policy period ends. Require a 3-year completed operations tail at minimum.
HVAC & Mechanical Contractors
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Increase to $2M/$4M for hospitals, data centers, or any facility where HVAC failure has direct life-safety or operational consequences. |
| Workers’ Compensation | StatutoryEL $1M | Refrigerant handling, rooftop equipment installation, and gas piping create varied hazard profiles requiring comprehensive WC coverage. |
| Commercial Auto | $1M CSL | Equipment transport including RTUs and large air handlers is routine in this trade. |
| Umbrella / Excess | $3M–$5M | Mechanical failures causing building-wide damage or business interruption can generate claims that dwarf CGL primaries. |
Specialty Coverages to Require
GC Watch-Out: HVAC contractors working on refrigerant systems must carry CPL for Freon/HFC releases — standard CGL policies routinely exclude pollution events. Confirm this is not a gap in their coverage.
Concrete Contractors
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Formwork collapse and structural failures are the catastrophic exposures. Require $2M/$4M on post-tensioned slabs or high-rise pours. |
| Workers’ Compensation | StatutoryEL $1M | Concrete work carries high frequency of musculoskeletal injuries and crush risks. Verify that “concrete finishing” and “shotcrete” are not excluded classes. |
| Commercial Auto | $1M CSL | Ready-mix trucks and pump trucks need auto coverage — confirm owned vehicles are on the ACORD and that BI/PD split limits meet your contract threshold. |
| Umbrella / Excess | $3M–$10M | On large pours — bridge decks, parking structures, high-rise cores — require $10M excess. Structural failure claims are multi-party and multi-million dollar. |
Specialty Coverages to Require
GC Watch-Out: Silica dust is a significant exposure for concrete cutters and grinders. Some carriers now exclude silica-related claims from standard CGL policies — verify this is covered, or require a CPL endorsement addressing crystalline silica.
Roofing Contractors
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Roofing is frequently excluded or sub-limited on standard CGL policies. Require roofing-specific coverage — not a policy that excludes it. |
| Workers’ Compensation | StatutoryEL $1M | Falls from height are the #1 cause of construction fatalities. WC rates for roofers are among the highest in construction — be suspicious of unusually low premiums. |
| Commercial Auto | $1M CSL | Standard requirement. Roofing crews often pull trailers; confirm trailer liability is covered. |
| Umbrella / Excess | $3M–$5M | Fatal fall injuries can generate wrongful death claims well into seven figures. $5M umbrella is standard for any GC taking on commercial roofing subcontractors. |
Specialty Coverages to Require
GC Watch-Out: This is the single trade where you are most likely to receive a COI showing coverage that the policy actually excludes. Review the full policy form or require a roofing endorsement confirmation letter from the carrier — not just the broker.
Framing & Rough Carpentry
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Fire risk during wood framing (before sprinklers are in) is the largest exposure. Ensure builder’s risk coordinates with sub’s CGL for overlap or gap issues. |
| Workers’ Compensation | StatutoryEL $500K–$1M | Framers work at height with power tools — OSHA citations and WC claims are common. Be wary of framing subs who claim 1099-only labor; WC misclassification is a significant GC liability. |
| Commercial Auto | $1M CSL | Standard. Lumber transport means regular use of trucks and trailers. |
| Umbrella / Excess | $2M–$5M | Framing fires on Type V wood-frame multifamily projects can result in total building losses. Consider $5M on projects over 3 stories. |
Specialty Coverages to Require
GC Watch-Out: Framing subcontractors using misclassified 1099 workers are a major insurance gap. If their WC coverage doesn’t include those workers, YOU may be liable. Use Billy’s prequalification checks to flag missing WC certificates before a crew sets foot on site.
Structural Steel & Iron Workers
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $2M / $4M | Ironwork is inherently one of the highest-risk trades. Minimum $2M per occurrence is standard on commercial steel erection. |
| Workers’ Compensation | StatutoryEL $1M | Fatal fall and crush injuries are frequent. Verify “ironworkers” and “steel erection” are covered classifications — not excluded or sub-rated in the policy. |
| Commercial Auto | $1M CSL | Heavy haul vehicles and cranes should each be confirmed on the ACORD 25. |
| Umbrella / Excess | $5M–$25M | On high-rise or complex steel erection, owners often require $10M–$25M excess layers. Don’t allow steel erection subs on site without confirming umbrella is in place. |
| Riggers Liability | $1M–$5M | Required for all crane picks and structural steel lifts. This is a standalone coverage — do not assume it’s folded into the CGL. |
Specialty Coverages to Require
GC Watch-Out: If a crane is owner-furnished (GC or owner provides crane, ironworker sub operates it), liability for crane operation may fall on you. Get both the crane owner’s and operator’s coverage confirmed before any picks.
Demolition Contractors
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $2M / $4M | Demolition is the trade most likely to trigger claims involving third-party structural damage, vibration, and collapse. Higher limits are the norm on urban projects. |
| Workers’ Compensation | StatutoryEL $1M | Exposure to asbestos, lead, silica, and structural instability makes WC and CPL non-negotiable. |
| Commercial Auto | $1M CSL | Debris hauling with heavy trucks; confirm that “dump trucks” and “roll-off vehicles” are covered. |
| Umbrella / Excess | $5M–$10M | Urban implosions or selective demolition adjacent to occupied buildings require $10M+ in excess layers. |
| Contractors Pollution Liability | $2M / $4M | Required — asbestos, lead paint, mold, and regulated waste are standard demolition exposures. |
Specialty Coverages to Require
GC Watch-Out: Verify the CGL includes coverage for X, C, U hazards (explosion, collapse, underground) — these are commonly excluded on standard policies but are the core exposures in demolition.
Excavation & Grading
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Underground utility damage is the defining exposure. Confirm the policy covers underground property damage (U hazard) — it’s often excluded by default. |
| Workers’ Compensation | StatutoryEL $1M | Trench collapses are catastrophic and frequently fatal. Verify “excavation” and “trenching” are covered WC classifications. |
| Commercial Auto | $1M CSL | Heavy equipment transport; confirm vehicles over 26K GVW are on the policy. |
| Umbrella / Excess | $3M–$5M | Gas line strikes and utility damage claims can reach into the tens of millions. $5M minimum recommended in urban environments. |
| Contractors Pollution Liability | $1M / $2M | Fuel spills, soil contamination, and unexpected hazardous material encounters make CPL mandatory for earth-moving work. |
Specialty Coverages to Require
GC Watch-Out: Call 811 compliance is the contractor’s responsibility, but when an excavator strikes a buried line, the GC is often named in the suit regardless. Confirm utility strike liability is covered in their CGL and not quietly excluded.
Masonry Contractors
Medium-High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Masonry scaffold failures and falling material are the top liability exposures. Increase to $2M/$4M on multistory work. |
| Workers’ Compensation | StatutoryEL $500K | Back and musculoskeletal injuries are extremely frequent in masonry. High WC frequency makes underinsurance easy to miss. |
| Commercial Auto | $1M CSL | Standard. |
| Umbrella / Excess | $2M–$3M | Scaffold-collapse injuries involving multiple workers can exhaust primary limits quickly on taller structures. |
Specialty Coverages to Require
GC Watch-Out: Silica-related disease claims from masonry cutting and grinding can be filed years after project completion. Verify completed operations coverage extends past closeout.
Drywall & Interior Contractors
Medium Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Drywall moisture damage and fire spread through improperly fire-taped assemblies are the key liabilities. |
| Workers’ Compensation | StatutoryEL $500K | High frequency of repetitive motion and respiratory injuries from joint compound dust. |
| Commercial Auto | $1M CSL | Standard. |
| Umbrella / Excess | $2M | Standard minimum; increase for high-rise or healthcare interiors. |
Specialty Coverages to Require
GC Watch-Out: EIFS (exterior insulation finish systems) is a specialized scope with very specific liability history around moisture intrusion. If the drywall sub is doing EIFS, require a specific EIFS endorsement on their CGL — not a standard policy.
Painting Contractors
Medium Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Overspray damage to adjacent property and fire risk from flammable solvents are the primary exposures. |
| Workers’ Compensation | StatutoryEL $500K | Painters work at height (lifts, ladders, scaffolding) and are exposed to VOC chemical hazards daily. |
| Commercial Auto | $1M CSL | Standard. Confirm spray rigs are listed as covered vehicles if the sub uses custom-built spray trucks. |
| Umbrella / Excess | $2M | Standard minimum. |
| Contractors Pollution Liability | $500K–$1M | Required for lead paint disturbance work, solvent spills, or airless spray in enclosed spaces. |
Specialty Coverages to Require
GC Watch-Out: Painting subs working on pre-1978 buildings disturbing lead paint must have RRP-certified crews AND appropriate CPL. Standard CGL will not cover lead paint abatement or cleanup costs.
Fire Protection & Sprinkler Contractors
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $2M / $4M | If a fire protection system fails and a structure burns — or if an accidental discharge floods a completed building — the losses are enormous. Minimum $2M per occurrence is non-negotiable. |
| Workers’ Compensation | StatutoryEL $1M | Overhead work, pressurized systems, and working around occupied buildings are all elevated risk activities. |
| Commercial Auto | $1M CSL | Standard. |
| Umbrella / Excess | $5M–$10M | System failure liability in a high-occupancy building (hotel, hospital, school) can produce catastrophic third-party claims. |
| Professional Liability (E&O) | $1M / $2M | Required for any design-assist or design-build fire protection scope. |
Specialty Coverages to Require
GC Watch-Out: An accidental sprinkler discharge in a fully furnished hotel is a $500K+ loss before a lawyer is called. Require 5-year completed ops and verify accidental discharge is not excluded under the property damage section.
Glazing & Curtainwall Contractors
High Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Fallen glass and curtainwall panels in urban environments have catastrophic injury and property damage potential. $2M per occurrence is strongly recommended. |
| Workers’ Compensation | StatutoryEL $1M | High-rise glazing involves exterior elevated work that is among the most hazardous in building construction. |
| Commercial Auto | $1M CSL | Glass delivery is specialized — confirm flatbed and specialty transport vehicles are covered. |
| Umbrella / Excess | $5M | A falling curtainwall panel on a pedestrian is a multi-million dollar claim. $5M minimum on any project above 5 stories. |
Specialty Coverages to Require
GC Watch-Out: Post-occupancy curtainwall failures (thermal cycling, seal failure, water intrusion) are a major long-tail liability. On large curtainwall scopes, require a project-specific professional liability policy covering the designer of record’s performance specs.
Flooring Contractors
Lower Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Moisture and adhesive-related damage to finished goods is the primary CGL exposure. Slip-and-fall claims during installation are also common. |
| Workers’ Compensation | StatutoryEL $500K | Knee, back, and respiratory injuries are frequent in flooring work. Chemical exposure from adhesives is a notable occupational hazard. |
| Commercial Auto | $1M CSL | Standard. |
| Umbrella / Excess | $1M–$2M | Lower threshold appropriate for most flooring scopes; increase for large commercial or healthcare projects. |
Specialty Coverages to Require
GC Watch-Out: Flooring subs have frequent “property in care, custody and control” claims when they damage owner-furnished tile, wood, or stone. Verify this is not excluded under their CGL or require a separate inland marine rider.
Insulation Contractors
Medium Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Spray polyurethane foam (SPF) fire risk during application is a significant exposure. Fiber and dust off-gassing can trigger CPL claims. |
| Workers’ Compensation | StatutoryEL $500K | Respiratory hazards from fiberglass, mineral wool, and SPF chemicals require proper WC classification and industrial hygiene compliance. |
| Commercial Auto | $1M CSL | Standard; confirm spray rig vehicles are listed. |
| Umbrella / Excess | $2M | Standard minimum. |
Specialty Coverages to Require
GC Watch-Out: SPF application is a hot-work equivalent from a fire and fume perspective. Many GC site safety programs require a hot-work permit for SPF — but also confirm the insulation sub’s CGL explicitly covers spray foam operations, as some carriers restrict or exclude it.
Landscaping & Site Work
Lower Risk| Coverage Type | Standard Minimum | Notes for GCs |
|---|---|---|
| CGL | $1M / $2M | Irrigation installation, hardscape work, and grading all carry meaningful third-party exposure. Increase for large commercial site work. |
| Workers’ Compensation | StatutoryEL $500K | Equipment operation, heat exposure, and pesticide handling require comprehensive WC classification. |
| Commercial Auto | $1M CSL | Multiple trucks and trailers typical; confirm non-owned/hired auto for subcontractors of the landscaper. |
| Umbrella / Excess | $1M–$2M | Lower threshold appropriate for most landscape/hardscape scopes. |
| Contractors Pollution Liability | $500K–$1M | Required for pesticide and herbicide application, fertilizer runoff, or any work adjacent to stormwater management systems. |
Specialty Coverages to Require
GC Watch-Out: Irrigation installation can cause subsidence and property damage claims that emerge slowly over time. Confirm completed operations is in place even for “soft” landscaping subcontractors.
Quick-Reference: Coverage Matrix by Trade
Standard minimums at a glance — for detailed requirements, see each trade section above.
| Trade | CGL Min. | WC EL | Auto | Umbrella | CPL Req. | Prof. E&O | Risk |
|---|---|---|---|---|---|---|---|
| Electricians | $1M / $2M | $500K–$1M | $1M CSL | $2M–$5M | ● | ● | 🔴 High |
| Plumbers | $1M / $2M | $500K–$1M | $1M CSL | $2M–$5M | ● | ○ | 🔴 High |
| HVAC / Mechanical | $1M / $2M | $1M | $1M CSL | $3M–$5M | ● | ● | 🔴 High |
| Concrete | $1M / $2M | $1M | $1M CSL | $3M–$10M | ● | ○ | 🔴 High |
| Roofing | $1M / $2M | $1M | $1M CSL | $3M–$5M | ● | ○ | 🔴 High |
| Framing | $1M / $2M | $500K–$1M | $1M CSL | $2M–$5M | ○ | ○ | 🔴 High |
| Structural Steel | $2M / $4M | $1M | $1M CSL | $5M–$25M | ○ | ○ | 🔴 High |
| Demolition | $2M / $4M | $1M | $1M CSL | $5M–$10M | ● | ○ | 🔴 High |
| Excavation | $1M / $2M | $1M | $1M CSL | $3M–$5M | ● | ○ | 🔴 High |
| Masonry | $1M / $2M | $500K | $1M CSL | $2M–$3M | ● | ○ | 🟠 Med-High |
| Drywall / Interior | $1M / $2M | $500K | $1M CSL | $2M | ○ | ○ | 🟠 Medium |
| Painting | $1M / $2M | $500K | $1M CSL | $2M | ● | ○ | 🟠 Medium |
| Fire Protection | $2M / $4M | $1M | $1M CSL | $5M–$10M | ○ | ● | 🔴 High |
| Glazing / Curtainwall | $1M / $2M | $1M | $1M CSL | $5M | ○ | ● | 🔴 High |
| Flooring | $1M / $2M | $500K | $1M CSL | $1M–$2M | ○ | ○ | 🟢 Lower |
| Insulation | $1M / $2M | $500K | $1M CSL | $2M | ● | ○ | 🟠 Medium |
| Landscaping / Site | $1M / $2M | $500K | $1M CSL | $1M–$2M | ● | ○ | 🟢 Lower |
Methodology & Disclaimer
The limits in this guide represent commonly accepted industry minimums for commercial construction projects as of 2025, based on standard subcontractor agreement templates, ISO form analysis, and market practice. Actual requirements should be tailored to project type, contract value, project location, owner requirements, and applicable state law. This guide does not constitute legal or insurance advice. GCs should always work with a qualified construction insurance broker and legal counsel to set final requirements for their specific projects and risk profile.Stop Reviewing COIs Manually
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