If you run a contracting business in Washington State — whether you do roofing, plumbing, electrical, landscaping, or general construction — you need more than just a license. You need the right insurance to protect your business, your crew, and your clients.

This guide breaks down every policy a Washington contractor should carry, what each one covers, and how to get the best rate.

Why Contractors Need Specialized Business Insurance

Standard personal auto or homeowner policies won't cover your business activities. If something goes wrong on a job site — a worker gets hurt, a client's property is damaged, or your truck is in an accident while hauling tools — you need commercial coverage that's built for the work you do.

Washington State also has legal requirements. The Department of Labor & Industries (L&I) requires most employers to carry workers' compensation. And many clients, general contractors, and municipalities require proof of general liability and bonding before they'll let you on the job.

The Core Policies Every Washington Contractor Needs

General Liability Insurance

General liability (GL) is the foundation of any contractor's insurance program. It covers:

• Bodily injury — if a third party (client, visitor, passerby) is injured because of your work
• Property damage — if you accidentally damage a client's home, building, or belongings
• Completed operations — claims that arise after a job is finished (e.g., a roof you installed leaks six months later)
• Personal and advertising injury — libel, slander, or copyright claims

Most Washington contractors carry $1 million per occurrence / $2 million aggregate. Some clients require higher limits.

Commercial Auto Insurance

If you drive a truck, van, or any vehicle for business purposes, personal auto insurance won't cover you. Commercial auto covers:

• Vehicles owned by your business
• Hired and non-owned vehicles (employees using their personal vehicles for work)
• Tools and equipment in transit (with proper endorsements)

Washington State requires minimum liability limits, but most contractors need higher limits to satisfy client contracts.

Workers' Compensation

Washington is a monopolistic workers' comp state — most employers must purchase coverage through the state's Department of Labor & Industries (L&I), not through a private insurer. However, independent contractors and sole proprietors may have options. We can help you understand your obligations and make sure you're properly classified.

Contractor's Tools and Equipment Insurance

Your tools are your livelihood. This coverage protects hand tools, power tools, and small equipment against theft, vandalism, and accidental damage — whether they're on the job site, in your truck, or in storage.

Inland Marine / Installation Floater

If you install materials or equipment that aren't yet permanently attached to a structure, an installation floater covers those materials while they're in transit or on the job site.

Surety Bonds: Required for Most Washington Contractors

A surety bond is not insurance — it's a financial guarantee that you'll complete a job as contracted. Washington State requires most licensed contractors to carry a contractor's registration bond. Depending on your trade and the size of your projects, you may also need:

• Performance bonds — guarantee project completion
• Payment bonds — guarantee subcontractors and suppliers get paid
• License and permit bonds — required by many municipalities

Universal Insurance Services handles contractor bonds alongside your insurance program, so everything is in one place.

Business Owner's Policy (BOP): A Smart Bundle for Smaller Contractors

If you're a smaller operation, a Business Owner's Policy (BOP) bundles general liability and commercial property coverage into one affordable package. It's a cost-effective starting point that can be customized with endorsements for your specific trade.

How Much Does Contractor Insurance Cost in Washington?

Rates vary based on:

• Your trade (roofing and demolition cost more than painting or landscaping)
• Annual revenue and payroll
• Claims history
• Coverage limits and deductibles
• Number of employees and vehicles

As an independent agency, Universal Insurance Services shops your coverage across 20+ carriers to find the best combination of price and protection. We don't work for one company — we work for you.

Get a Quote Today

Don't wait until a client asks for your certificate of insurance. Get covered now and bid on bigger jobs with confidence.

Call us at (888) 874-0208 or request a quote online. We serve contractors across all 39 Washington counties.