Contractors Insurance in Vermont

The state of Vermont requires state licensing for various subcontractors and specialty contractors, however, general contractors are licensed at the local level. Unfortunately, rather than one board issuing all licenses, there is a separate licensing board for each type of contractor. For more information on contractor licensing in Vermont, contractors should visit the Vermont Department of Public Safety Division of Fire Safety.

The state of Vermont requires all businesses with one or more employee, either full-time or part-time, to carry workers’ compensation insurance. The state does offer the following exceptions:

  • Sole proprietors and partners may purchase coverage, but are not required to.
  • Corporate officers and LLC members are included in coverage requirements, but may choose to be exempt.
  • Businesses that work with independent contractors must determine in writing who’s responsible for insurance. If the independent contractor lacks coverage, your business will be responsible.

In Vermont, workers’ compensation is purchased from a licensed commercial insurance company. Businesses who wish to self-insure must be approved by the state. Contractors should visit the Vermont Department of Labor for more information about workers’ compensation rules and regulations.

Protect Your Business with Contractors Insurance from Fairbanks Insurance

The purpose for purchasing a commercial insurance package is to reduce or eliminate your company’s risk of doing business. This means that if you or an employee or uninsured subcontractor cause an injury to someone or cause damage someone’s property as a result of your business operations, your insurance company can step in and defend you or pay settlement costs and awards by the court.

Here is What We Recommend:

General Liability

Subcontractors and specialty contractors have the same risks and legal obligations exposures as the big firms have. you can be sued for damaging client property, causing bodily harm, or advertising injury. General liability insurance will cover legal expenses and other damages resulting from a lawsuit.

Most commercial insurance companies will also offer various riders that you can add to your policy (endorsement) in order to broaden your coverage and reduce other potential risks.

Workers' Comp

Although workers compensation is generally required in every state when a contractor has at least one employee, most contractors don’t realize if an employee has a work-related injury or illness, unless there is a workers’ comp policy in place, your company will be held responsible for the medical costs and wage loss of your employees.

Commercial Auto

Most contracting businesses use light trucks, cargo vans, trailers, and heavy duty trucks at the jobsite. It’s important that every contractor purchase commercial auto insurance rather than personal auto insurance to properly protect these vehicles and protect the business from liability claims. Even if you have a single pickup trump registered in the owner’s name, commercial auto insurance is the policy to purchase.

Tool Coverage

Tools and equipment coverage is known as Inland Marine Insurance which is one of the oldest forms of insurance that is designed to protect your high-value, movable property. When you take your tools and other equipment with you to the project site, inland marine insurance protects your hard working assets from all-too-common risks, such as damage and theft.

Surety Bonds

License Bonds and Permit Bonds are regularly required from large customers and government entities. Since surety claims are not caused by accidents, but rather, a failure to complete a project according to the terms of a contract, ultimately the surety has a responsibility to the customer to make certain the contractor has the know-how and skills to complete the project.

Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.

With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.


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