Not all trades face the same risks. A plumber's exposure profile looks nothing like a roofer's, and your insurance should reflect that reality.

Plumbing, Electrical, and HVAC Special Provisions

Plumbing contractors face water damage liability that can dwarf the original scope of work: a failed connection that floods a finished basement can generate $100,000 in claims from a $500 repair. Electrical contractors carry fire risk and code compliance exposure. HVAC contractors often work with refrigerants subject to EPA regulations, adding environmental liability to the mix. Each of these trades may need pollution liability endorsements or installation floater coverage depending on project scope. Carriers underwrite these trades differently, and the class codes assigned to your business directly impact your premiums.

Roofing and High-Risk Trade Endorsements

Roofing consistently ranks among the most expensive trades to insure, and for good reason: the combination of heights, hot materials, and weather exposure creates a claims profile that makes underwriters nervous. Many standard GL carriers won't write roofing at all, pushing contractors toward specialty markets. Expect to pay significantly higher premiums, and expect clients to demand higher coverage limits. Umbrella policies, which provide excess liability above your GL and auto limits, are practically mandatory for roofers. If you're in a high-risk trade, an agency with deep construction market access, like Avery Insurance Agency with its 125-plus years of local experience, can place coverage with carriers that actually understand your work rather than pricing blindly based on fear.

Carrying insurance is only half the battle. Proving you have it, and ensuring everyone on your job site does too, is where compliance gets complicated.

Subcontractor Insurance Verification Requirements

General contractors bear downstream liability for uninsured subcontractors. If your drywall sub doesn't carry workers' comp and one of their employees gets hurt on your site, that claim lands on your policy. NH Insurance Commissioner DJ Bettencourt has warned homeowners that they "should never assume a contractor's insurance is in place simply because someone says they are covered." The same logic applies to GCs managing subs. Require certificates of insurance before any subcontractor sets foot on site, and verify them directly with the issuing carrier or agency.

Additional Insured Status and Waivers of Subrogation

Most project owners and GCs require subcontractors to add them as additional insureds on GL policies. This gives the project owner direct coverage under your policy for claims arising from your work. Waivers of subrogation prevent your insurer from pursuing the project owner to recover claim payments, which is standard in most construction contracts. These endorsements are typically inexpensive but must be requested before the policy period begins. Missing an additional insured request can delay project starts or get you removed from a bid entirely.

Understanding what drives your premiums helps you control them. Insurance isn't a fixed cost: it's a variable you can influence.

Class Codes and Experience Modification Rates (MOD)

Every contractor is assigned NCCI class codes based on their trade. A carpentry contractor (class code 5403) pays a different base rate than an excavation contractor (class code 6217). Your experience modification rate, or MOD, adjusts that base rate up or down based on your claims history relative to other contractors in your class. A MOD of 1.0 is average. Below 1.0 means fewer claims than expected, and your premium drops. Above 1.0 means more claims, and you pay a surcharge. One serious workers' comp claim can inflate your MOD for three years.

Strategies for Reducing Annual Premiums

The most effective way to lower premiums is to reduce claims. Implement formal safety programs, conduct regular toolbox talks, and document everything. Beyond safety, consider these approaches:

• Bundle policies: A business owner's policy combining GL and property coverage often costs less than purchasing them separately.
• Increase deductibles: If your cash flow supports it, a higher deductible lowers your premium.
• Review class codes annually: If your work mix changes, make sure your codes reflect what you actually do, not what you did five years ago.
• Shop the market every 2-3 years: Carrier appetites shift, and a consultative agency can identify better options as your business evolves.
  

Does New Hampshire require contractors to be licensed and insured? NH doesn't have a general contractor license, but many trades (electricians, plumbers) require state licensing. Insurance requirements come from contracts, municipal permits, and workers' comp statutes rather than a single licensing body.

Can I use my personal auto insurance for my work truck? No. Personal auto policies exclude business use. If you're hauling tools, towing equipment, or driving to job sites as part of your trade, you need a commercial auto policy.

How often should I update my certificates of insurance? COIs should be updated at every policy renewal and whenever you add or change coverage. Many GCs and project owners require updated certificates annually or at the start of each new project.

What happens if my subcontractor doesn't have insurance? Their claims become your problem. Workers' comp claims from uninsured subs get charged to your policy, and liability claims can flow uphill to the GC. Always verify before work begins.

Is an umbrella policy worth it for a small contractor? Yes, especially if you work on residential projects or in high-risk trades. A $1 million umbrella policy is relatively inexpensive and provides critical protection above your GL and auto limits.