How to Quote a Contractor: GL, WC, Auto, and Inland Marine
Contractors don't buy one policy — they buy a package. A plumbing contractor with three trucks, a crew of eight, and $200K in tools needs general liability, workers compensation, commercial auto, and inland marine at minimum. Miss one line, and the client either has a coverage gap or another agent fills it and eventually takes the whole account.
This guide covers the full contractor quoting workflow: what to collect, how to quote each line, which carriers write which trades, and the endorsements that general contractors and project owners require. If you've already read our workers comp quoting guide, this builds on that foundation with the additional lines that round out a contractor account.
Contractor accounts require four core lines — GL, workers comp, commercial auto, and inland marine. Quoting them together protects coverage continuity, improves carrier pricing through account rounding, and prevents competitors from picking off individual lines.
The Four Core Lines Every Contractor Needs
Not every contractor needs the same limits or the same coverage structure, but nearly every contractor needs these four lines. The table below shows what each covers, the standard forms involved, and when it applies.
| Line of Business | What It Covers | Key Form / Application | When It's Triggered |
|---|---|---|---|
| General Liability (CGL) | Third-party bodily injury, property damage, completed operations | ACORD 125 + ACORD 126 | Damage to someone else's property or person during or after work |
| Workers Compensation | Employee injuries and occupational disease | ACORD 130 | Any on-the-job employee injury or illness |
| Commercial Auto | Liability and physical damage for business vehicles | ACORD 127 | Accidents involving owned, hired, or non-owned vehicles |
| Inland Marine | Tools, equipment, materials in transit or at job sites | Carrier-specific application (no universal ACORD form) | Theft, damage, or loss of movable equipment and tools |
Some contractors also need builders risk, professional liability, pollution liability, or an umbrella — but these four lines are the baseline.
What You Need From the Client
Contractor submissions require more documentation than most commercial accounts. We've seen agents submit incomplete packages and wait weeks for quotes that never come. Collect everything upfront.
Documents and data for a complete contractor submission:
| Item | Applies To | Notes |
|---|---|---|
| ACORD 125 (General Section) | All lines | Client name, entity, locations, years in business, revenue |
| ACORD 126 (GL Section) | GL | Classification, operations description, subcontractor usage, additional insured needs |
| ACORD 130 (WC Application) | Workers comp | Payroll by class code, officer inclusion/exclusion elections |
| ACORD 127 (Auto Section) | Commercial auto | Vehicle schedule, driver list, radius of operation |
| Equipment schedule | Inland marine | Make, model, year, serial number, and replacement cost for every item over $5,000 |
| Three years of loss runs | All lines | From every carrier for every line — not just GL, not just WC |
| Subcontractor list | GL and WC | Names, trade, annual cost, and whether each sub carries their own GL and WC |
| Current experience modification rate (EMR) | Workers comp | Pull from NCCI or state bureau using the client's FEIN |
| Certificates of insurance from subcontractors | GL and WC | Verify coverage is active and limits meet contract requirements |
| Sample contract (if available) | All lines | Shows insurance requirements from GCs or project owners the contractor works for |
When we work with agents on contractor accounts, subcontractor documentation is almost always the bottleneck. A GC using 15 subs needs COIs from all 15 — and at least a few will be expired or show insufficient limits.
Step-by-Step: Quoting the GL
Class Code Selection Is the Foundation
GL class codes for contractors are assigned by ISO/Verisk based on the contractor's primary trade. The distinction between an artisan contractor (does the physical work with their own crews) and a general contractor (manages subcontractors, may not self-perform) is critical — the classification codes, rates, and underwriting approach differ substantially.
Common contractor GL classifications:
- Electricians (97047) — Moderate hazard; rates vary by residential vs. commercial
- Plumbers (98304) — Similar risk profile to electricians; water damage is the primary concern
- Roofers (95647) — High hazard; limited carrier availability, significantly higher rates
- General Contractors — residential (91580) — Rated on subcontractor cost, not revenue
- General Contractors — commercial (91581) — Rated on subcontractor cost; higher limits typically required
- Painters (98344) — Moderate risk; lead paint restricts options on pre-1978 buildings
- HVAC contractors (97050) — Moderate hazard; refrigerant handling adds environmental exposure
Standard Limits and Rating Basis
GL standard limits are $1M per occurrence / $2M general aggregate, with $2M products-completed operations, $1M personal-advertising injury, $100K damage to rented premises, and $5K medical expense. Many GC contracts require $2M/$4M or an umbrella to reach $5M total.
Artisan contractors are rated on annual revenue or payroll. General contractors are rated on subcontractor cost — a GC with $5M in revenue but $4M in sub costs is rated on the $4M figure.
Completed Operations
Completed operations coverage responds to claims after the contractor finishes and leaves the job site — a plumber's water heater installation that fails six months later and floods a basement, for example. Standard CGL policies include it, but some carriers impose exclusions or sublimits for certain trades. Verify the coverage is included and not capped.
Per-Project Aggregate Endorsement
Standard CGL policies apply the $2M aggregate across all projects combined. A contractor on five concurrent jobs could exhaust the aggregate on a single large claim. The per-project aggregate endorsement gives each project its own $2M aggregate — most GC contracts require it.
Step-by-Step: Quoting the Workers Comp
We covered the full WC quoting process in our workers comp guide. For contractors specifically, three issues dominate the quoting conversation.
Construction Class Codes Are High-Hazard
NCCI maintains roughly 700 active class codes, and construction codes carry some of the highest rates. Code 5551 (roofing) can exceed $20 per $100 of payroll in high-cost states, while code 5190 (electrical wiring) might run $4-$8 per $100. The difference between correctly classifying a worker as a carpenter (5403 — moderate) versus a roofer (5551 — high) can mean tens of thousands in premium on a single policy.
We've seen agents misclassify drywall installers under general carpentry codes, only to have the carrier reclassify during the premium audit and hit the client with a $15,000 additional premium bill. Ask what each employee physically does every day — not just their job title.
Subcontractor Exposure
In most states, if a subcontractor doesn't carry their own workers comp policy, the GC's carrier charges premium for that sub's payroll at the sub's applicable class code rate. A GC using five uninsured subs can see their WC premium double. Always verify sub COIs before quoting, and build the sub payroll exposure into the application if any subs lack coverage.
Wrap-Up Programs (OCIP/CCIP)
On large projects ($50M+), the project owner or GC may sponsor a wrap-up that provides WC and GL for all contractors on the job. OCIPs are owner-funded; CCIPs are GC-funded. If your client works on wrap-up jobs, exclude that payroll from their individual WC policy.
Rounding the Account: Auto and Inland Marine
Commercial Auto
Most contractors need commercial auto coverage. The basics:
- Owned autos — Trucks, vans, and equipment vehicles on the schedule. Liability is mandatory; physical damage is typically carried on financed or newer vehicles.
- Hired auto — Covers liability on rented or borrowed vehicles used for business.
- Non-owned auto — Covers liability when employees use personal vehicles for business purposes.
Address the radius of operation (local vs. long-haul), whether vehicles carry hazardous materials, and whether any vehicles exceed 26,001 lbs GVW (triggering DOT/FMCSA requirements and changing carrier appetite).
Inland Marine
Inland marine covers property in transit or movable equipment not covered by standard property policies. For contractors, this means:
- Contractors equipment floater — Covers owned tools and equipment (backhoes, generators, scaffolding, laser levels) on or off the job site. Policies are typically written on a scheduled basis (specific items listed with values) or blanket basis (total value with no item-by-item schedule).
- Tools and equipment — Smaller items (hand tools, power tools) often covered on a blanket basis with a per-item sublimit.
- Installation floater — Covers materials and equipment during installation at a job site until the project is accepted by the owner.
When we help agents quote inland marine for contractors, the most common gap is outdated equipment schedules. A contractor who bought a $45,000 mini excavator two years ago may not have added it. Require an updated list at every renewal.
Carrier Selection for Contractors
Not every carrier writes every trade, and carrier appetite for contractors varies widely by class code, state, and account size. Here's an honest assessment of how the market segments.
Carrier appetite by contractor type:
| Contractor Type | Standard Market Availability | Notes |
|---|---|---|
| Electricians | Broad — most standard carriers write this class | Low-to-moderate hazard; residential and commercial both widely available |
| Plumbers | Broad | Similar to electricians; some carriers restrict if the contractor does fire suppression work |
| HVAC | Broad | Refrigerant handling may require pollution questionnaire |
| Painters | Moderate | Lead paint exposure restricts options for contractors working on pre-1978 buildings |
| General Contractors (residential) | Moderate to Broad | Depends on volume of self-performed work vs. subbed-out work |
| General Contractors (commercial) | Moderate | Higher limits needed; carriers want detailed sub lists and contract review |
| Roofers | Limited | High-hazard class; many standard carriers exclude entirely. Specialty markets (Builders Mutual, Employers, GUARD) are the primary options |
| Demolition | Very Limited | Requires specialty markets; pollution exposure often present |
| Excavation / Earthwork | Limited to Moderate | Underground utility exposure restricts standard market options |
An honest limitation: Certain high-hazard trades — roofing, demolition, asbestos abatement, structural steel erection — have genuinely limited carrier options. For these classes, expect to work with specialty construction markets and set client expectations that premiums will be significantly higher. Submitting a roofer to a carrier that doesn't write roofing wastes two weeks.
Schedule credits and debits typically range from -25% to +25% of manual premium based on underwriter judgment. For contractors with clean loss history and strong safety programs, pushing for maximum credit is where you create the most value. Two carriers using the same base rates can produce a 30-40% premium difference on schedule credit alone.
Endorsements and Exclusions to Watch
Contractor GL and WC policies need specific endorsements to satisfy contract requirements. Missing these endorsements after binding means issuing mid-term endorsements, which slows down certificate issuance and frustrates everyone.
Additional Insured
Nearly every GC contract requires the subcontractor to add the GC as an additional insured on their GL policy. The standard endorsements are CG 20 10 (ongoing operations), CG 20 37 (completed operations), and CG 20 33 (automatic status when required by written contract). Request the broadest form the carrier offers — some carriers use proprietary endorsements that are narrower than the ISO standard. Review the actual language, not just the endorsement number.
Waiver of Subrogation
GC contracts typically require the sub to waive their insurer's subrogation rights against the GC on both GL and WC policies. Blanket waivers — which apply to all parties when required by written contract — are more efficient than scheduling individual waivers. Most carriers charge 1-5% of policy premium for this endorsement.
Primary and Non-Contributory
This endorsement makes the sub's GL policy respond first and without seeking contribution from the GC's own GL policy. If the carrier won't add it, the sub can't satisfy most GC contract requirements.
Exclusions to Flag
Watch for exclusions that carriers add to contractor GL policies: residential work exclusions (some commercial carriers exclude residential entirely), EIFS exclusions (common for exterior work contractors), subsidence exclusions (affecting excavation and foundation contractors), and mold exclusions (increasingly common and problematic for plumbers and HVAC contractors).
Common Pitfalls When Quoting Contractors
Not verifying sub COIs. Uninsured subs create premium exposure on both GL and WC. A GC who says "all my subs have insurance" may be wrong. Verify every COI, confirm policies are active, and check that limits meet GC contract requirements.
Wrong class code on GL. A framing contractor classified under a general carpentry code faces reclassification at audit — and a claim during misclassified operations may trigger a coverage dispute.
Missing additional insured endorsements at binding. Request all required additional insured endorsements before binding, not after. Post-bind endorsement requests delay certificate issuance, and the contractor can't start work without proper certificates.
Quoting lines separately instead of as a package. Carriers apply better schedule credits when they write multiple lines on the same account. Always present the full GL, WC, auto, and inland marine package to each carrier.
Ignoring the contract review. GC contracts specify minimum limits, required endorsements, and additional insured requirements. Quote without reviewing the contract, and you may bind a policy that doesn't meet requirements — meaning the contractor can't start the job.
Frequently Asked Questions
What limits do contractors typically need for general liability?
Standard GL limits are $1M per occurrence / $2M general aggregate. However, many GC contracts and project specifications require $2M/$4M or higher. Contractors who bid on commercial or government projects often need a $5M umbrella on top of the underlying GL to meet contract thresholds. Start with the contract requirements, then match the limits.
How is a general contractor rated differently than an artisan contractor?
Artisan contractors (electricians, plumbers, HVAC techs) are rated on revenue or payroll because they self-perform work. General contractors are rated on subcontractor cost — a GC with $3M in revenue but $2.5M in sub costs is rated on the $2.5M figure. This distinction changes the data you need at intake.
Do contractors need inland marine coverage if they already have a commercial property policy?
Yes. Standard commercial property policies cover contents at a fixed location — the contractor's office or warehouse. They typically don't cover equipment at job sites, in transit, or stored at temporary locations. Inland marine fills that gap, covering tools, equipment, and materials wherever they are. A $50,000 laser grading system stolen from a job site isn't covered by commercial property — it's covered by the contractors equipment floater on the inland marine policy.
What's the most common reason contractor GL quotes get declined?
Incomplete submissions and wrong classification are the top two. Beyond those, poor loss history (especially frequency over severity) and high-hazard class codes without safety programs account for most declinations. For roofers and demolition contractors, the limited number of carriers that write those classes means a single declination significantly narrows options.
Can a contractor get all four lines from one carrier?
Sometimes, and it's often preferable. Carriers like Travelers, The Hartford, CNA, and Zurich offer multi-line contractor programs with account-rounding credits. But not every carrier is competitive on every line — a carrier that writes excellent GL for electricians may have uncompetitive WC rates in your state. We've seen agents get the best total cost by splitting lines across two carriers. Compare the monoline total against the package pricing before committing.
