Insurance & licensing: cover your business
The unglamorous stuff that saves your business when something goes wrong — and wins you jobs when customers ask 'are you licensed and insured?'
Nobody got into the trades to deal with paperwork - but the right licenses and insurance are what stand between one bad day and losing everything you've built. They're also a selling point: 'licensed and insured' is one of the first things good customers check. This is a plain-English primer, not legal advice - rules vary by trade and location, so verify locally.
Why it's not optional
One accident, one injury, one job gone wrong can generate a claim big enough to end an uninsured business. Licensing keeps you legal and able to pull permits; insurance keeps a single bad event from wiping you out. Skipping either is betting your whole business on nothing going wrong - ever.
The coverage most trades need
- General liability - covers property damage and injuries to others. The baseline.
- Workers' comp - if you have employees, usually required by law.
- Commercial auto - your work vehicles aren't covered by personal auto policies.
- Tools & equipment - replaces the gear your business runs on if it's stolen or damaged.
Exact needs vary by trade and size - talk to an agent who knows contractors.
Licensing and permits
Most trades require a license to operate legally, and many jobs require permits. Requirements differ by state, county, and trade - and doing licensed work without a license (or skipping permits) can void insurance, kill deals, and bring fines. Know the rules where you work and keep your credentials current.
“A customer's dog got out during a job and there was a claim. My liability policy handled it. Without it, that one afternoon could've ended my business.”
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Scan my businessGet properly licensed for your trade and carry real insurance - it protects your business from ruin and wins the customers who care about doing it right. Verify the specifics for your trade and area.
Common questions
It varies widely by trade, location, crew size, and coverage. Get quotes from an agent who specializes in contractors - it's almost always less than people fear and far less than one claim.
Depends entirely on your trade and location - many require a state or local contractor license, and specialties (electrical, plumbing, HVAC) have their own. Check your state and local authorities.
No - it's a general primer. Requirements vary and change, so confirm the specifics for your trade and area with the proper authorities and a licensed insurance agent.