Learn about business insurance requirements and the most common policies for general contractors in Indiana.
General contractors may need different types of insurance coverage depending on the work they do and their client contracts. These policies are the most popular for general contractors in Indiana, and often provide the best coverage for their insurance needs.
This policy covers basic risks, such as a client who trips over your toolbox and suffers an injury. Bundle it with commercial property insurance for savings in a business owner's policy.
A BOP bundles general liability coverage and commercial property coverage at a discount. It's often the most cost-effective type of insurance for general contractors.
Most states require workers’ comp for contracting businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
A business auto policy covers the cost of injuries and property damage in accidents involving a general contractor’s van. It can also pay for repairs to vehicles damaged by weather or vandalism.
This policy helps pay for repair or replacement of a contractor’s saws, nail guns, hammers, and other tools if they're lost, stolen, or damaged. It's a type of inland marine insurance.
This policy is also called errors and omissions insurance (E&O). It covers legal fees when a general contractor is sued over a mistake, such as using the wrong materials.
A bond guarantees reimbursement for the client if a general contractor fails to fulfill the terms of a contract. Common bonds include bid bonds, performance bonds, and payment bonds.
This policy covers structures in progress and materials, often paying for damage caused by fire, vandalization, and non-severe weather events.
This policy covers costs related to pollution, such as a lawsuit alleging harm caused from exposure to silica dust on a construction job site. It's also called environmental insurance.
General contractors in Indiana may need to carry the following insurance policies to comply with county or state laws:
General liability insurance is the foundation of a general contractor’s protection. It covers accidents that damage a client's property or cause a bodily injury, along with libel and other advertising injuries.
A general liability policy may be required in local municipalities in order to obtain a contractor's license. The type of work you do may also determine how much coverage you're required to carry.
Contractors in Indiana may also need this policy to sign a commercial lease or meet the terms of a client's contract. Adding commercial umbrella insurance can boost the coverage limits on general liability insurance and other policies.
Workers' comp insurance covers medical costs and disability benefits when an employee is injured on the job or develops an occupational illness. It's a key policy for the construction industry and related professions, such as carpenters, electricians, and plumbers.
Sole proprietors may not need workers' compensation coverage for their general contractor license, but it's still a good idea to carry this insurance. Personal health insurance doesn't cover work-related personal injuries, so it can save you from out-of-pocket medical expenses.
Licensure requirements in Indiana sometimes include a surety bond, depending on what city or county you work in.
A surety bond guarantees reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.
In the state of Indiana, general contractors are not required to carry a state-issued license. However, while the state doesn't require licensure, the city or county in which you work may mandate a local-issued license.
Each municipality has its own requirements for obtaining a contractor's license, as well as different classes based on the type of work you do. It's best to check local government laws for your area to find the correct classification information and requirements.
One example is Indianapolis / Marion County. There are five classifications of contractors' licenses:
The requirements for general contractors include:
To learn more about Indiana licensing requirements, visit the IN.gov website.
Insureon’s industry-leading technology helps general contractors in Indiana save time and money shopping for business liability insurance and property insurance. Start an online application to get free quotes from top-rated U.S. insurance companies.
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A licensed insurance agent can answer your questions and help you find the right coverage for your Indiana business. Small business owners can access their certificate of insurance shortly after they apply for quotes and pay for a policy.