What insurance questions should a small contractor ask first?

Start with operations, not a policy name

Two contractors with the same trade can have very different exposures. One may work alone on residential repairs while another uses subcontractors, transports expensive equipment and performs commercial projects. USAPlans recommends creating a one-page description of services, job locations, annual revenue, payroll, subcontracted cost, vehicles and major equipment before requesting coverage information.

Do not describe only the work you prefer to perform. The insurer generally needs the work the business actually performs, including occasional services that may change classification or eligibility.

Review the connected risks

General liability, commercial auto, tools and equipment, workers’ compensation, property, cyber events and owner disability address different problems. One policy should not be assumed to cover every part of the business.

Contracts may also require specific limits, certificates or additional-insured status. A certificate is evidence of coverage at a point in time; it does not rewrite the policy or replace reading the contract.

Prepare for a licensed conversation

Bring current policies, loss information, driver details, vehicle registrations, equipment values and representative contracts. Ask what is excluded, where coverage applies, how subcontractors are treated and what must be reported when the business changes.