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Contractors Insurance in Virginia

In Virginia, contractor licenses are classified into two types: the class of license (A, B, or C) and the specialty licenses. The Board of Contractors regulates, manages, and enforces various functions involving the licensure process of businesses, contractors, and tradesmen. As such, contractors who wish to perform certain trades in Virginia have to obtain the proper licenses.

The A, B, and C licenses are designated as follows:

  • Class A – this license authorizes contractors to bid on single contracts worth $120,000 or contracts totaling $750,000 and above.
  • Class B – this license allows contractors to work on single contracts worth $10,000 or more but not exceeding $120,000 and contracts performed within a 12-month period worth $150,000 or more, but less than $750,000.
  • Class C – this license allows contractors to work on single contracts worth $1,000 or more but not exceeding $10,000 and contracts undertaken within a 12-month period worth less than $150,000.

All contractors should visit Virginia’s Department of Professional and Occupational Regulation website for complete information. For the Tradesmen Program requirements please go here.

Virginia employers who regularly employ two or more employees are required to carry workers’ compensation insurance. Employees include part-time, seasonal and temporary workers, minors, trainees, immigrants, and working family members. Coverage is optional for businesses with fewer than two employees. Coverage can be purchased from any commercial insurance company licensed in Virginia.

Protect Your Business with Contractors Insurance from Fairbanks Insurance

Every Virginia contractor is exposed to certain risks everyday at the jobsite. Whether or not your state has insurance requirements to be licensed, all contractors should transfer their risks to a highly-rated insurance carrier to protect their business. Fairbanks Insurance Brokers represents many highly-rated commercial insurance companies and will shop your business for the most affordable rate.

Here is What We Recommend:

General Liability


Your contractor’s general liability policy lays the foundation for well-planned business insurance portfolio. Your general liability will cover your business for various different contractors’ risks:

  • Business liability resulting from claims for bodily injury or property damage from third parties.
  • Contractual Liability – often times contractors enter in contractual agreements with other contractors and must indemnify their business.
  • Products Completed Operations – If your business manufactures of installs products for customers, you could be held liable for actions that result from products and their installation.
  • Legal Costs – Every legal action filed against your company must be responded to and defended. Here is where your general liability insurance is invaluable.

Workers' Comp


Virginia is considered an NCCI State when it comes to workers’ compensation. This means that classes and rates are set by the National Council on Compensation Insurance. The state of Virginia requires all contractors with at least one employee to carry workers’ compensation and enforces substantial fines for businesses who neglect this rule. Your workers’ compensation protects your business and your employees. Employees are covered for injuries and illnesses that are work related and cannot file claims against their employer if a workers’ compensation policy is in force.

Commercial Auto


Arizona contractors that use vehicles for commercial purposes should only depend on commercial auto insurance to cover their liability for injuries or property damage and repair or replace their vehicles in the event of an accident or theft. Contractors that rely on personal auto insurance will likely find that coverage will not be available if the vehicle is regularly used for commercial purposes.

Tool Coverage


Your tools and equipment are not covered under your business property or commercial auto policy while in transport, in storage, or at the jobsite. Fairbanks Insurance Brokers provides affordable toll and equipment coverage using Inland Marine Insurance coverage.

Surety Bonds


Like the state of Arizona, most states require contractors to post a surety bond protecting the state before a license will be issued. Also, many large customers and government agencies will require a bid bond before they will even review your company’s bid for a 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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