Liability insurance for Construction & Trades

• Do I need insurance for side work or moonlighting in the trades?

  Yes — from the first paid job. None of the policies already around you respond to moonlighting: your employer's insurance covers their business, not your weekend jobs, and homeowners policies barely acknowledge business activity. A sole proprietor can buy general liability directly, no LLC required, and completed work keeps the exposure alive long after you've left.

• Do independent contractors need liability insurance?

  Usually, yes. No statute says "1099 workers must buy liability insurance," but three forces converge on it: your client's policy doesn't defend you, the contracts that get you hired demand proof of your own general liability, and states with contractor registration laws make coverage a condition of taking the work at all.

• Does contractor insurance cover subcontractors?

  Mostly no. A subcontractor is not an insured under the hiring contractor's general liability policy, and a 1099 worker is not covered by the hiring firm's insurance. Workers' comp is the trap: in Florida, if an uninsured sub's worker gets hurt, the law makes the contractor responsible for the benefits — the 1099 label doesn't change that.

• What insurance do electricians need?

  Start with general liability — for electricians it can be a license condition, not a choice: Maryland requires master electricians to carry at least $300,000 in liability coverage plus $100,000 property damage. Around it sit commercial auto for the van, workers' comp once you hire, and the completed-operations coverage that answers for fires after you've left.

• What insurance does a general contractor need?

  Four coverages carry a general contractor: general liability, workers' compensation, commercial auto, and — on most commercial work — an umbrella to meet contract limits. What's legally required comes from your state license board and workers' comp statute; everything else is imposed by the contracts you sign. Your subcontractors' insurance decides how much of the risk stays yours.

• What insurance does a handyman need?

  General liability is the center of gravity — it's what property managers demand before you're on a vendor list and what pays when a repair damages a home or injures someone. The real problem is scope: handyman policies are built for small permit-free jobs, commonly exclude work like roofing, and licensing law decides where "handyman" legally ends.

Coverage mechanics for Construction & Trades

Policy mechanics, exclusions, certificates, and claims questions live on our sister publication: Construction & Trades on isthiscovered.org.