What Insurance Does a Contractor Need in California?

Most contractors need commercial auto coverage and general liability. Many also need tools cover and workers' comp, and some should look at cyber insurance.

What you need depends on your work, your crew and the contract in front of you. Sarah Jones handles business insurance at Darlene Baxter Insurance Agency in Pleasant Hill, CA, and this is the list she goes through with contractors.

Usually because of a job. A contractor has a particular contract coming up, and it needs general liability before the work starts. Or the work truck needs commercial auto coverage.

If that's you, call before the start date, not the week of. Tell us about the contract and we'll work back from there.

• Commercial auto. For the vehicles you use for the business.
• General liability. Often asked for in a contract before you can start the job.
• Tools cover. For the tools and equipment you work with.
• Workers' comp. If you have people working for you, ask us what applies to your crew.
• Cyber insurance. Possibly. If you take payments or keep client information on a laptop or phone, it's worth a conversation.

You don't have to buy all of it. We'll tell you which ones your work and your contract actually call for.

Two things matter most when the call is about a contract.

• What limits the contract requires. Look for the insurance section and write down what it asks for.
• Who needs to be named. The contract will say who the proof of coverage has to name. Have the exact name ready.

With those two answers, we can tell you what you need and what to do next.

Maybe. Many contractors take payment by invoice, cash or a card reader, and keep client information on a laptop. A stolen laptop, or a scammer emailing your client to ask for a wire transfer pretending to be you, can happen to a small business. It's an easy one to overlook.

It isn't right for every contractor, which is why we ask before we recommend it.

Sarah Jones handles business insurance at Darlene Baxter Insurance Agency in Pleasant Hill, CA. Our team helps homeowners, families and business owners get covered with real choices: their main company first, and other companies through the brokerage when it isn't the right fit.

If you have a contract coming up, call the office at (925) 940-6970 or send us a message. Tell us about the job and have the limits and the name from your contract ready. Our process page shows how we work with you.