Insurance for Contractors and Construction Businesses
Minnesota contractors face a distinct set of risks on every job — from property damage and bodily injury claims to equipment losses and workers' compensation exposures. Whether you operate as a general contractor, a specialty trade, or a one-person shop, the right insurance program depends on what you build, who you hire, and what your contracts require.
This page is for general contractors, subcontractors, and trade contractors operating in Minnesota — including electricians, plumbers, HVAC contractors, carpenters, concrete contractors, excavators, roofers, landscapers, and similar operations. It is also relevant for contractors who work as subcontractors on larger projects and need to meet certificate of insurance requirements.
Common Exposures for Contractors
Third-party bodily injury and property damage
A customer, property owner, or bystander is injured at a job site, or your work damages a client's property. General liability is the primary coverage for these claims.
Tools, equipment, and materials
Hand tools, power tools, and equipment left on job sites or in vehicles are vulnerable to theft and damage. Installation floaters cover materials in transit or awaiting installation.
Workers' compensation
Minnesota requires most employers to carry workers' compensation. Construction work carries above-average injury rates, and the cost of a serious injury can be significant.
Commercial vehicles
Trucks, vans, and trailers used to haul equipment and materials need commercial auto coverage. Personal auto policies typically exclude business use.
Completed operations
Claims can arise after a job is finished — a roof leaks, a pipe fitting fails, or an electrical installation causes a fire. Completed operations coverage is part of general liability.
Subcontractor liability
If you hire uninsured subcontractors and they cause damage or injury, the claim may come back to you. Some policies exclude subcontractor work or require additional documentation.
Builders risk
For contractors who take on responsibility for a structure under construction, builders risk coverage protects the project itself against fire, theft, vandalism, and weather.
Coverages Commonly Considered
General Liability
Covers bodily injury and property damage claims arising from your operations and completed work. Most contracts and project owners require it.
Learn moreWorkers' Compensation
Required by Minnesota law for most employers. Covers medical expenses and lost wages for employees injured on the job.
Learn moreCommercial Auto
Covers vehicles used in your business — including liability, physical damage, and uninsured motorist coverage.
Learn moreCommercial Property
Covers your shop, office, or storage facility and the contents inside — tools, equipment, and materials stored there.
Learn moreBonds
License and permit bonds are required by many Minnesota municipalities. Contract bonds may be required on public or commercial projects.
Learn moreInformation Typically Needed for a Review
- Description of work performed — trades, project types, and whether you work as a general contractor, subcontractor, or both
- Annual revenue and payroll by trade classification
- Number of employees and subcontractors used
- Vehicle schedule — year, make, model, VIN, and use for each vehicle
- List of tools and equipment, including any larger items such as lifts, trailers, or specialty equipment
- Prior loss history — typically three to five years
- Current certificates of insurance or policy declarations if coverage is already in place
Situations That May Require Special Underwriting
- Roofing contractors — particularly those doing steep-slope or commercial roofing — often face more limited market availability and higher premiums.
- Contractors working on residential projects over a certain height, or on high-value custom homes, may require additional review.
- Operations involving blasting, demolition, or underground work typically require specialized coverage and underwriting.
- Contractors with prior losses, especially liability claims, may have fewer carrier options.
- Businesses that use a significant number of uninsured or 1099 subcontractors may face underwriting scrutiny or exclusions.
Frequently Asked Questions
Coverage availability, eligibility, and terms vary by carrier, program, and individual risk characteristics. The information on this page is general in nature and does not constitute a coverage guarantee or commitment to insure.