Do Your Contractors Carry the Right Insurance?
Spring is here, and that means renovation projects, new builds, and landscaping contracts are back in full swing. If you’re a business owner or property manager in the Jeffersonville or New Albany area, you’re probably hiring contractors right now. Before the work starts, there’s one question worth asking: are you actually protected if something goes wrong on your property?
Contractor insurance requirements are something most business owners only think about after an incident. That’s the wrong time.
What You Need to Verify Before Any Contractor Sets Foot on Your Property
There are two coverage types every contractor you hire should carry, no exceptions.
General Liability Insurance covers property damage and bodily injury caused by the contractor’s work. If a crew member damages your facility or a client trips over equipment on your job site, this is what responds. The standard minimum for most commercial projects is $1 million per occurrence, but many property managers and general contractors require $2 million.
Workers’ Compensation Insurance covers the contractor’s employees if they’re injured on your property. Here’s what most people don’t realize: in Indiana, if a subcontractor is injured on your site and they don’t carry workers’ comp, your policy may be forced to respond. That’s a liability you didn’t ask for and didn’t price into the project.
The Certificate of Insurance: Don’t Just Ask for It — Read It
Most business owners know to request a Certificate of Insurance (COI) before a contractor starts work. Fewer know what to actually look for. A few things that matter:
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Policy dates: Verify the policy is active for the full duration of your project, not just the day it was issued.
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Coverage limits: Confirm the numbers meet your requirements. A $300,000 general liability policy is not the same as a $1 million policy.
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Additional insured status: Your business should be listed as an additional insured on the contractor’s policy. This gives you direct rights under their coverage.
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Carrier rating: A policy from an A-rated carrier means it’s likely to pay when you need it. Cheap coverage from an unrated carrier may not.
One thing we do at Innovators Insurance is help our commercial clients set up automated COI tracking so certificates don’t expire mid-project without anyone noticing. It’s a small detail that’s prevented a lot of headaches for contractors and property managers in the Louisville metro area.
What Happens When You Don’t Check
A general contractor in Southern Indiana hired an uninsured landscaping sub last spring. One employee was injured on site — a fractured wrist from a fall. Because the sub had no workers’ comp, the general contractor’s policy became the backstop. The claim cost $47,000 and pushed their premium up significantly at renewal. A five-minute COI check could have avoided the entire situation.
Protect Your Business Before the Season Gets Busy
If you’re managing contractors this spring — whether you’re a general contractor, a property manager, or a business owner overseeing renovations — it’s worth having a quick conversation about how your current coverage handles subcontractor liability.
Our team at Innovators Insurance works with commercial clients across Clark County, Floyd County, and the greater Louisville area. We can review your current commercial policy, help you build a COI checklist, and make sure you’re not carrying someone else’s risk. Reach out at InnovatorsInsurance.com or give us a call.
