Learn about business insurance requirements and the most common policies for general contractors in Virginia.
General contractors may need different types of insurance depending on the work they do and their client contracts. These policies are the most popular for general contractors in Virginia, 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 general contracting businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
This policy covers the cost of injuries and property damage in accidents involving a general contractor’s vehicle. 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.
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 or adhere to building codes. 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.
Contractors pollution liability covers costs related to pollution, such as a lawsuit alleging harm caused from exposure to silica dust on a construction job site. It's sometimes referred to as environmental insurance.
General contractors in Virginia must carry the following insurance coverage to comply with county or state laws:
General liability insurance is the foundation of a general contractor’s protection. It covers legal fees related to accidents that damage a client's property or cause a bodily injury, along with libel and other advertising injuries.
Contractors in Virginia may be required to have a general liability policy depending on the counties they work in, like Chesterfield [PDF] and Radford [PDF] counties, and the type of work they do. This policy might also be required to sign a commercial lease or meet the terms of a client's contract. Adding commercial umbrella insurance can boost the coverage limits on commercial general liability insurance and other policies.
Workers' compensation insurance covers medical care 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' comp for their Virginia general contractor license, but it's still a good idea to carry this coverage. Personal health insurance doesn't cover work-related personal injuries, so it can save you from out-of-pocket medical expenses.
Business vehicles in Virginia don't need to be covered by commercial auto insurance, but drivers must prove they can pay for losses in an accident.
In some counties, auto liability insurance might be required to obtain your general contractor license and undertake contracts.
Commercial auto insurance protects business vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.
Licensure requirements in Virginia sometimes include a surety bond, depending on the type of work you do.
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 Virginia, from Richmond to Virginia Beach, general contractors must be registered and licensed to work. Depending on the license class [PDF], your requirements for obtaining the license might vary.
There are three classes of license limitations, which determine the dollar size of projects the licensee can undertake:
Licensure requirements include:
View details on the Virginia Department of Professional and Occupational Regulation website.
Insureon’s industry-leading technology helps general contractors in Virginia save time and money shopping for business liability insurance. Start an online application to get free quotes from top-rated U.S. insurance companies.
To make the application go quicker, have this information ready:
A licensed insurance agent can answer your questions and help you find the right coverage for your Virginia business. Small business owners can get their certificate of insurance shortly after they apply for quotes and pay for a policy.