Contractor insurance applications ask detailed questions because two businesses with similar names can have completely different exposures. Organizing the information before requesting quotes can reduce delays and unnecessary back-and-forth.
1. Basic business information
Begin with information that identifies the business and establishes how it operates.
- Complete legal business name
- Any trade names or DBAs
- Business entity type
- Federal employer identification number when requested securely
- Mailing and physical addresses
- Years the business has operated
- Years of experience for the owners
- Contractor license information when applicable
- Website address
- Requested policy effective date
Sensitive identifiers should be transmitted only through an appropriate secure method—not through ordinary email.
2. A detailed description of operations
This is one of the most important parts of the submission. Avoid descriptions such as “general contractor,” “construction” or “handyman” without explaining what work is actually performed.
A useful operations description should identify:
- Every trade and service performed
- The percentage of revenue from each operation
- Residential, commercial and industrial percentages
- New construction, renovation, service and repair percentages
- Interior versus exterior work
- Maximum height or depth
- Geographic service territory
- Types of customers and project owners
- Work performed by employees
- Work subcontracted to others
- Operations the contractor never performs
Instead of “remodeling contractor,” explain that the business performs 50% interior residential remodeling, 25% kitchen and bath renovation and 25% flooring installation, while subcontracting all electrical, plumbing and roofing work.
3. Annual sales or gross receipts
General liability and other policies may use annual gross receipts as a rating or exposure basis. Underwriters may request:
- Prior-year actual gross receipts
- Current-year estimated gross receipts
- Projected gross receipts for a new venture
- Revenue broken down by operation
- Revenue from work performed outside Virginia
Use realistic estimates. Policies rated on sales may be audited after the policy period, and the final premium can change if actual sales differ from the estimate.
4. Employee payroll and duties
Workers’ compensation and some general liability programs require payroll divided by the type of work performed.
Prepare:
- Number of full-time and part-time employees
- Estimated annual payroll by employee duty
- Clerical payroll separated from field payroll
- Sales employees, estimators and project managers
- Owner or officer names and duties
- Owner inclusion or exclusion preferences when permitted
- Temporary, seasonal or leased workers
- Work performed in other states
An employee who performs more than one duty may not always be split among classifications. Classification depends on workers’ compensation rules and the actual work performed.
5. Subcontractor information
Subcontracted work can significantly affect general liability and workers’ compensation underwriting.
Be prepared to provide:
- Total annual subcontracted cost
- Types of work subcontracted
- Percentage subcontracted versus performed by employees
- Whether written subcontractor agreements are used
- Required general liability limits
- Required workers’ compensation coverage
- Additional insured procedures
- Certificate collection and tracking procedures
Uninsured subcontractors can create additional premium during an audit and may create significant claim exposure.
Review our guide to insurance for subcontractors .
6. Project information
Underwriters evaluate the size and type of work the contractor has completed and expects to perform.
- Average project size
- Largest project completed
- Largest project planned for the coming year
- Typical project duration
- Percentage of occupied-building work
- New construction versus renovation
- Public, private and government work
- Wrap-up or controlled insurance program participation
- Work for tract-home builders or developers
- Condominium, apartment or townhome work
Certain project types may have separate eligibility requirements, restrictions or exclusions.
7. Vehicle and driver information
Commercial auto quotes require complete vehicle and driver information. Prepare:
- Year, make and model of every vehicle
- Vehicle identification numbers
- Garaging addresses
- Registered owner of each vehicle
- Cost new or stated value when requested
- Use of each vehicle
- Operating radius
- Towing and trailer information
- Driver names, birth dates and license numbers submitted securely
- Accident and violation information
Include owners, employees, family members and anyone else who regularly operates a company vehicle. Discuss employee-owned vehicles used for business and rented vehicles as well.
8. Tools, equipment and property
Create an inventory of property the contractor owns, leases, rents or borrows.
- Total value of unscheduled hand tools
- High-value equipment requiring a schedule
- Serial numbers for scheduled equipment
- Rented or leased equipment exposure
- Maximum property value at any one jobsite
- Maximum value in any one vehicle or trailer
- Property stored outdoors
- Security and theft-prevention measures
- Office, warehouse or shop contents
- Buildings owned by the business
Standard commercial property insurance may not adequately protect equipment that regularly moves between locations.
9. Materials awaiting installation
Contractors responsible for valuable materials or equipment should identify:
- Maximum value in transit
- Maximum value at temporary storage locations
- Maximum value at a jobsite
- Types of property installed
- Typical installation period
- Testing or commissioning requirements
An installation floater or builders risk policy may be appropriate depending on the contractor’s responsibility.
10. Current insurance information
Current policies help the agent understand existing coverage, limits, classifications and pricing.
Provide copies of:
- General liability policy
- Workers’ compensation policy
- Commercial auto policy
- Umbrella policy
- Property or inland marine policies
- Professional or pollution liability policies
- Current declarations and endorsement schedules
- Renewal terms when available
A certificate is helpful for showing limits, but it does not contain all policy exclusions and endorsements.
11. Loss runs and claim details
Established contractors are commonly asked for currently valued loss runs covering several prior policy years.
Loss runs should generally come directly from the carrier or agency and show:
- Policy periods
- Dates of loss
- Open and closed claims
- Amounts paid
- Outstanding reserves
- Claim descriptions
For larger losses, include a written explanation of what happened, the current status and corrective measures implemented to prevent a similar event.
12. Written insurance requirements
Send the full contract insurance section, bid specifications or sample certificate when coverage must satisfy a customer or project.
Requirements may include:
- Specific general liability limits
- Commercial auto liability
- Workers’ compensation and employers liability
- Commercial umbrella limits
- Additional insured status
- Primary and noncontributory wording
- Waiver of subrogation
- Completed operations coverage
- Professional or pollution liability
- Surety bonds
An agent can identify the insurance items being requested, but an attorney should interpret contractual obligations and advise whether the agreement should be signed.
13. Specialized contractor exposures
Disclose any operation that may require a specialized market or additional policy.
- Roofing or work at significant heights
- Tree removal or crane work
- Welding, hot work or structural steel
- Excavation or underground work
- Demolition
- Fire-protection or alarm work
- Design, engineering or consulting
- Mold, lead, asbestos or contaminated soil
- Fuel, refrigerant or chemical handling
- Work involving airports, railroads, utilities or government projects
A difficult operation is not necessarily uninsurable. Accurate disclosure helps the agency determine whether standard or surplus-lines markets may be appropriate.
Information for a new contractor
A new business will not have prior company policies or loss runs. Underwriters may instead evaluate the owner’s experience.
New ventures should be prepared to provide:
- Owner’s construction résumé
- Prior employers and duties
- Trade experience and years in the industry
- Licenses and certifications
- Projected sales and payroll
- Expected project types and sizes
- Signed contracts or upcoming work when available
- Safety and subcontractor procedures
Why complete information matters
Complete information does more than speed up the quote. It helps:
- Identify carriers that write the actual operation
- Reduce classification errors
- Reveal exclusions that may be important
- Coordinate multiple policies
- Address contract requirements before work begins
- Reduce unexpected audit issues
At minimum, send a detailed operations description, sales, payroll, subcontracted cost, vehicle and driver information, equipment values, current insurance, loss runs and written project requirements. Ford Agency can then identify what additional information particular markets need.