What Insurance Should Your Contractor Carry?

Hiring a contractor without verifying their insurance is like driving without a seatbelt. If something goes wrong on your project, the wrong contractor can leave you on the hook for tens of thousands of dollars in damage or injury costs.

Here’s what to look for, in plain language.

The 3 types of insurance every contractor should have

1. General Liability (GL)

What it covers: Property damage and bodily injury caused by the contractor’s work. If they drop a hammer through your window, dent your siding with a ladder, or a worker trips and falls and gets hurt, GL covers it.

Minimum to look for: $1,000,000 per occurrence / $2,000,000 aggregate.

Some contractors carry less. Don’t accept it. The premium difference is small and you’re the one at risk if something major happens.

Critical add-on: Products & Completed Operations ($1M minimum). This covers damage that happens AFTER the contractor leaves. If a poorly installed flashing causes a leak six months later, this is what pays for it. Without it, you have no recourse once the contractor’s truck pulls away.

2. Workers Compensation

What it covers: Medical bills and lost wages if a worker is injured on your property.

Why it matters: If a contractor doesn’t carry workers comp and a worker gets hurt on your roof, you can be held personally liable as the property owner. Colorado law allows injured workers to sue homeowners when the contractor doesn’t have proper coverage.

For solo contractors: They may not carry workers comp on themselves (it’s expensive and not legally required for owners). But if they have employees or subs, those people must be covered. Ask: “Do you carry workers comp on everyone who will be on my property?“

3. Commercial Auto

What it covers: Accidents involving the contractor’s work vehicles.

Why it matters: Personal auto policies typically exclude business use. If a contractor’s truck rolls into your fence, their personal auto won’t pay. They need commercial coverage.

How to verify

Ask for a Certificate of Insurance (COI)

A COI is a one-page document from the insurance company showing what the contractor carries. Any legitimate contractor can produce one within minutes — their broker emails it on request.

Ask for it before signing a contract. A contractor who can’t produce a COI in 24 hours is a contractor you don’t want.

What to look for on the COI

1. Insurance company name — should be a major carrier (Berkshire, Travelers, Hartford, etc.)
2. Policy effective dates — make sure it’s currently active and covers your project dates
3. Coverage limits — General Liability $1M/$2M, Workers Comp as required by state
4. Description of operations — should explicitly include “re-roofing” or similar language for roof work
5. Additional Insured — for big projects, ask the contractor to list YOU as an additional insured. This means their policy will defend you if something goes wrong

Verify it’s real

Don’t just take a printed COI at face value. Call the insurance broker listed at the bottom and ask “Is policy [number] currently active for [contractor name]?” Takes 2 minutes. Catches the rare scammer.

Red flags

🚩 “Sure, I have insurance, I just need to find the paperwork” — Real contractors have it on their phone.

🚩 A handwritten or photoshopped certificate — Real COIs are generated by the insurance company on official forms.

🚩 Out-of-state insurance company you’ve never heard of — Could be fly-by-night.

🚩 “I’ll get insurance before we start the project” — They should already have it.

🚩 Cash-only contractor — Often a sign they can’t get insurance because of past claims or no business standing.

Western Edge Exteriors

We carry:

• General Liability: $1M per occurrence / $2M aggregate
• Products & Completed Operations: $1M
• Workers Compensation: As required by Colorado law
• Commercial Auto: Yes

We can email you a Certificate of Insurance with you listed as additional insured within 24 hours of request. It’s part of our standard onboarding for any project over $5,000.

To request a COI, email info@wexterior.com or call 720-425-6121.