Contractor insurance in Birmingham and across Alabama
General liability, workers' compensation, commercial auto, tools and equipment, and builder's risk for electricians, landscapers, roofers, remodelers, chimney and masonry contractors, and small general contractors. Read by an agent who works with these trades every week.
Who this is for
If you swing a hammer, pull wire, run a crew, or sign contracts that say "Contractor shall maintain insurance," this page is for you. Falk Agency writes coverage for artisan contractors and trade contractors (electrical, plumbing, HVAC, landscaping and hardscape, painting, drywall, flooring, chimney and masonry, roofing, fencing, concrete), residential remodelers and handyman businesses, small general contractors and home builders, and specialty and service contractors such as pressure washing, cleaning and restoration.
We work with new ventures as well as established companies. If you're just getting licensed and need your first certificate of insurance to sign a contract, we can usually get you bound within a day or two. The agency is licensed in Alabama, Tennessee and Georgia, so a contractor taking jobs in Chattanooga or Atlanta doesn't need a second agent.
The coverages contractors actually need
General liability
The foundation of every contractor program. General liability pays for bodily injury and property damage you or your crew cause to third parties, including damage arising out of your completed work. It is what your GC's certificate request is really about. Typical limits are $1,000,000 per occurrence and $2,000,000 aggregate. The details that matter are in the endorsements: additional insured forms (ongoing and completed operations), primary and non-contributory wording, waiver of subrogation, and any exclusions for subcontracted work, roofing, or residential construction. We read those forms before we recommend a policy, because a cheap quote with the wrong exclusions is not cheap.
Workers' compensation
Alabama requires workers' compensation once you regularly employ five or more people, counting corporate officers. Even below that, most GCs and owners require every sub to carry it. WC pays medical costs and lost wages for employees injured on the job and includes employer's liability coverage. Owners can typically elect to be excluded. Premium is based on payroll by class code, so accurate classification (ground-level work versus work at height, for example) has a big effect on cost.
Commercial auto
A truck or van used for the business, titled to the business, or carrying tools and ladders belongs on a commercial auto policy. Personal auto policies routinely exclude business use, and a work vehicle "miscoded" on a personal policy is one of the most common gaps we find when we review a contractor's account. Hired and non-owned auto coverage protects you when employees drive their own vehicles for work.
Tools, equipment and inland marine
General liability does not cover your own property. An inland marine or contractor's equipment floater covers tools, trailers and equipment wherever they are: on the truck, at the job site, or stolen from a storage unit. Scheduled items get full value; smaller tools can be covered on a blanket basis.
Builder's risk
Builder's risk insures a structure while it is under construction or renovation, along with materials on site and in transit. Lenders require it before releasing draws. We write both ground-up and renovation builder's risk, including projects where the owner or GC is the named insured, and we can add soft costs and delay coverage where the project calls for it.
Professional, pollution and umbrella
Contractors who design as well as build, or whose work can create environmental exposure (remediation, HVAC, chimney work, spraying, anything involving fuel or chemicals), may need contractor's professional and pollution liability, which GL excludes. A commercial umbrella adds limits above your GL, auto and employer's liability when a contract requires $2 million or $5 million.
Certificates of insurance, additional insureds and contract review
Most of the day-to-day work on a contractor account is paperwork: a certificate for a new GC, an additional insured endorsement for a property owner, a waiver of subrogation for a municipal job. We turn certificates around the same business day. When a contract's insurance requirements are unusual, send it to us before you sign it and we'll tell you whether your policy meets it or what it would cost to get there.
When standard carriers say no
Roofers, new ventures, contractors with claims, anyone working above two or three stories, and certain residential operations are routinely declined by standard markets. Falk Agency places those accounts through the excess and surplus lines market via wholesale brokers we work with every week. Surplus lines policies are written by non-admitted carriers, carry Alabama surplus lines tax and fees, and sometimes use more restrictive forms, so we'll walk you through what's different before you buy.
What we'll ask for
To quote a contractor accurately we'll need your legal entity name and FEIN, a description of your operations and the percentage of residential versus commercial work, estimated annual revenue and payroll, the amount you pay subcontractors and whether they carry their own coverage, years in business and any prior claims, and copies of any current policies. If you already have a policy, send the declarations pages and we'll build the submission from those.
Contractor insurance questions we hear every week
Does a contractor in Alabama have to carry general liability insurance?
Alabama law does not require every contractor to carry general liability, but in practice almost every general contractor, property owner, licensing board and commercial lease will require it before you can work. Most GCs ask for at least $1,000,000 per occurrence and $2,000,000 aggregate with the GC named as additional insured. Home builders and general contractors licensed through the state boards are typically asked for proof of coverage as part of licensing.
When does an Alabama contractor need workers' compensation insurance?
Alabama requires workers' compensation coverage once a business regularly employs five or more employees, including officers of a corporation. Below that threshold coverage is optional, but many general contractors and project owners require every subcontractor to carry it regardless of size, because an uninsured sub's injured employee can become the GC's claim. Sole proprietors and LLC members can usually elect to be excluded from coverage.
What does a certificate of insurance (COI) show and how fast can I get one?
A certificate of insurance (ACORD 25) is a one-page summary of your policies, limits and effective dates issued to a third party such as a GC, property owner or bank. It can also show that the certificate holder is an additional insured or that a waiver of subrogation applies. Falk Agency issues certificates the same business day, usually within a couple of hours.
What is an additional insured endorsement and why does my GC want it?
An additional insured endorsement extends your general liability coverage to another party, typically the general contractor or property owner, for claims arising out of your work. GCs require it so that if someone is hurt because of your work, your policy responds first. Some contracts require both ongoing operations and completed operations forms; we'll read the contract language and match the endorsements to it.
Why is my contractor GL quote so expensive, or why did a carrier decline me?
Contractor pricing depends heavily on class code (roofing costs far more than painting), payroll and subcontractor costs, years in business, loss history and whether you do residential or commercial work. New ventures, roofers, anyone working at height, and contractors with claims are often declined by standard carriers. That is where the surplus lines market comes in; we place those risks regularly through wholesale brokers.
What happens at a general liability or workers' comp audit?
Most contractor GL and WC policies are auditable, meaning the premium you paid at the start is an estimate based on projected payroll and subcontractor costs. At the end of the term the carrier verifies actual figures and bills or refunds the difference. The most common surprise is uninsured subcontractors: if you paid subs who could not show their own coverage, the carrier charges you as if they were your employees. Keeping certificates from every sub avoids that.
Does my general liability policy cover my tools and equipment?
No. General liability covers injury and property damage you cause to others; it does not cover your own tools, trailers or equipment. Those are covered by an inland marine or contractor's equipment policy, which is inexpensive and can usually be added alongside your GL.