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Understanding Contractor Insurance in Virginia With The Allen Thomas Group Insurance Agency

Does Virginia require contractors to be insured?
Do small business owners need insurance?
Is your business owner’s policy enough to secure your business and reputation?
What risks come with skimping on coverage?
These questions underscore how crucial insurance policies are for incorporating contractors aiming to work legally in Virginia’s diverse construction industry.
Insurance may be the critical component in your risk management that you are ignoring thus far.
Between complex licensing rules, stringent municipal requirements to pull permits, and high injury rates, operating without sufficient business insurance in Virginia leaves too much on the table – lost contracts, lawsuits, and insolvency if something untoward happens.
General contractors in Virginia should focus on finding an answer to the question: Who can help clarify state licensing rules and provide customized, budget-friendly insurance policies that check every compliance box?
Only a contractor insurance expert can help you navigate the licensing and insurance complexities and find the right coverage out there!
Looking for a quick quote to protect your business?
Get a quote now by clicking on the link below!



Table of Contents
Types of Insurance Required for Virginia Contractors
Here are different types of insurance options for contractors to protect your Virginia business.
All licensed Virginia general contractors must carry adequate general liability protection.
Virginia general contractor insurance provides adequate coverage for your business, covering critical legal defense and damage claim expenses should clients sue you for property damage, bodily injury, or advertising issues.
Most residential remodelers need at least $50k per occurrence and $100k aggregate, with higher minimums for commercial builders.
Bundling business liability insurance with other forms of small business insurance for general contractors as a package helps offset total policy costs through multi-line discounts.
General liability insurance does not cover financial harm from mistakes or negligence in the construction business other than bodily injury and property damage.
Therefore, you need separate errors & omissions (E&O) insurance to fill this critical gap, helping protect your business.
This insurance helps cover liability claims from design defects, faulty work, and unintended professional mistakes that could otherwise quickly bankrupt contractors through expensive lawsuits or project overruns.
Virginia mandates commercial auto insurance for all contractor-owned vehicles driven regularly for business purposes.
Upgrading personal policies to commercial-grade protection provides coverage for your business vehicles, protecting against damage to business vehicles and trailers, rental fees, and, most importantly – lawsuit liability if accidents occur while transporting tools or crews.
The lack of an approved commercial vehicle policy can put your Virginia general contractor license and assets at tremendous risk.
Home builders, remodelers, and commercial site contractors all need tailored builder risk policies when breaking ground on new residential or multifamily projects in Virginia.
Builder’s risk insurance protects your business in Virginia against financial losses in the event of damage to permanent or temporary structures before completion – covering common mishaps like collapsed scaffolding, storms, and material theft that could otherwise devastate budgets and timelines.
The average contractor invests thousands in vital equipment and tools vulnerable to theft and damage on changing job sites.
While general liability policies may offer basic protection, equipment insurance or inland marine insurance provides enhanced coverage against loss/damage risks operators face while transporting assets daily.
Contractors in Virginia must get tools & equipment coverage to continue working unhindered.
Any contractor operating in Virginia must carry workers comp insurance if they have more than three employees to protect your small business.
This commercial insurance protects you in the event of a worker injury. It pays for medical bills/lost income of workers from job-related illnesses or injuries.
With workplace injury claims in Virginia topping $244 million in 2020 – going without workers comp poses major legal and financial threats.
We ensure Virginia contractors have compliant workers comp policies meeting state statutes while controlling premium costs.
Virginia Contractor License Bond vs. Surety Bond
Confusing terminology complicates an already complex regulatory environment.
License bonds vs surety bonds may sound interchangeable but represent distinct financial products contractors must secure legally operating in Virginia.
License Bonds
Mandatory form of liability coverage tied specifically to contractor classification/license type filed with the state to work legally.
Protects clients by guaranteeing funds to finish work or correct issues should a contractor fail to deliver services fully.
Surety Bonds: Broader consumer protection bonds guaranteeing contractors’ ability to fulfill duties across residential or commercial projects.
Virginia technically only demands license bonds, but job values, complexity, and client risk tolerance often dictate additional surety bonds.
Surety bonds are mandatory for certain local building departments. They come in handy if the contractor fails to fulfill the contract.
Main exemptions to contractor insurance requirements in Virginia
Sole proprietors/partnerships with no employees are exempt from needing workers’ compensation insurance. However, they still require general liability coverage to operate legally.
Handymen doing minor repair/maintenance jobs under $1,000 in value may qualify for a handyman exemption, allowing them to forego licensing, bonding, and Virginia business insurance coverage requirements. However, most counties limit this.
Agricultural buildings like barns or sheds built on farms may be exempt from standard commercial contractor insurance minimums. However, any employee injuries still require workers’ compensation per Virginia law.
Government contractors directly employed by municipal agencies or public institutions may be exempt, as the government entity itself provides policies.
However, independent contractors still have insurance needs.
Owner-builders doing construction work on their residences or properties may be exempt, as no client coverage warrants exist.
However, independent subcontractors hired would still require standard policies.
Specific specialty technicians like drillers, well-system providers, and elevator mechanics have unique insurance exemptions tied to respective regulatory boards and statutes.
In general, clear-cut exemptions are rare in the contractors’ insurance landscape.
The complex web of licensing, consumer protections, municipal statutes, and liability precedents makes operating without appropriate insurance inadvisable for even small contracting ventures.
Navigating ambiguous rules or counting on exemptions as guaranteed protection poses a tremendous financial risk.
Trust our insurance carriers so you can get the minimum insurance needs covered and get the coverage you need.
Let us help you get the coverage as a safety net for your business. Complete your formalities to get a certificate of insurance for your general contracting business.

Is Commercial Property Insurance necessary for Virginia contractors?
Property coverage is like a vital shield to protect your business property from physical damage or loss.
While commonly associated with homeowners insurance, business property coverage is an essential form of general contractor insurance to cover damage, theft, and liability exposures for business equipment, job sites, and inventory.
Perils in coastal regions like flooding require enhanced protection beyond basic policies.
Ensuring adequate insurance coverage for tools, materials, temporary structures, and other contractor property prevents small disasters from shutting operations.
Insurance Solutions Customized For You Contractors
Yes, Getting A Certificate Of Insurance Is Really That Easy
We know how frustrating and complex the process of finding the right insurance can be and how it slow down your ability to take care of your customers especially when you are waiting for bonds or a Certificate of Insurance (COI).
Let us help fix it for you.

Tell us about your specific needs and we will find the right policy for you.

Review the results of our search.

We will walk you through your new policy step by step.
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Get General Contractors Business Insurance Coverage From The Allen Thomas Group
As an independent insurance agency, we boast an expansive provider network that allows crafting tailored packages to meet business insurance needs, whether building along the Blue Ridge Mountains or Tidewater region.
We leverage top-rated insurance partners to bundle general liability, commercial auto, workers comp, and more while saving money over separate policies.
Just as important – we provide superior claims support in worst-case situations.
The Allen Thomas Group offers budget-friendly insurance, licensing guidance, and year-round support so contractors can focus on building Virginia up. Contact us today to receive your free insurance quote and get the best coverage.
Our commercial insurance agents in Virginia Beach are happy to explain key differences and connect you with reputable bond issuers delivering the needed protections with their contractor’s license in Virginia or construction projects.
People Also Ask
Get More Insights On Making The Right Insurance Decision For Your Company
How much does the contractor's insurance cost in Virginia?
Predicting the cost of business insurance is tricky, as various factors like your specialty, business size, and chosen coverage levels play a role.
However, expect to pay an average of $64 monthly for general liability, $306 for workers’ comp (3+ employees), and $183 for commercial auto insurance.
Don’t hesitate to get personalized quotes from reputable Virginia insurance agencies like The Allen Thomas Group for accurate pricing based on your unique needs.
Remember, these are just averages, and individual costs can vary significantly, depending on how much insurance is required.
Does Virginia require contractors to have insurance?
Not generally, but it is important to get insurance to protect your business.
Virginia doesn’t require insurance for all contractors. However, certain localities or specific projects may require general liability insurance for permits.
While you are not required to obtain a Virginia liability insurance, licensed insurance contractors ensure they get it as this insurance helps protect themselves and their clients from unexpected property damage or injury claims.
What are the 2 types of insurance required by Virginia law?
Virginia residents need two types of liability coverage on their insurance policy:
Property damage: Protects your assets if you cause damage to someone else’s property (e.g., car accident).
Bodily injury: Covers medical expenses and lost wages if you accidentally injure someone.
These protect you from financial responsibility in case of covered accidents.
Workers’ Compensation is required for a contracting business in Virginia state with more than three employees, including subcontractors.
This covers medical expenses and lost wages for work-related injuries or illnesses.
Does Virginia require contractors to be licensed?
Yes, Virginia requires most contractors to have a license based on the type and value of their work. Check the Virginia Department of Professional and Occupational Regulation for details and specific license requirements.
What states do you provide contractor insurance in?
- Alabama
- Arizona
- California
- Colorado
- Connecticut
- Georgia
- Illinois
- Indiana
- Kentucky
- Michigan
- New York
- North Carolina
- Ohio
- Pennsylvania
- South Carolina
- Tennessee
- Virginia
Additional Resources And Links For Virginia Contractors Seeking Insurance
Virginia Department of Professional and Occupational Regulation: https://www.dpor.virginia.gov/node/6
Virginia Workers’ Compensation Commission: https://workcomp.virginia.gov/content/insurance-department
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