A contractor working in Greensburg can carry the wrong insurance for years and never know it, because nothing tests the policy until something goes wrong. By then the coverage is what it is.

Here are the four policies that carry the weight for a small trade business in Westmoreland County, and what each one is actually for.

1. General liability

This is the policy general contractors and property managers ask you to produce before you set foot on the site. It responds when your work injures someone or damages property that is not yours: the customer who trips over your extension cord, the pipe you put a nail through, the neighbouring car your ladder falls onto.

Two details decide whether it is worth carrying:

• Products and completed operations. This covers damage that shows up after you finished and left. For a roofer or a plumber, that is most of the real exposure.
• Additional insured status. General contractors will require you to add them. Read what you are agreeing to, because the contract language often demands more than a standard endorsement provides.

2. Commercial auto

If a truck has your business name on the door, or you haul tools and materials in it, a personal auto policy is the wrong instrument. Personal policies contain business-use exclusions, and the moment a claim looks commercial the carrier will read them closely.

Do not overlook hired and non-owned auto coverage if employees ever drive their own vehicles for the business. That is a common and expensive gap.

3. Workers compensation

Pennsylvania requires workers compensation coverage for employers with employees, with narrow exceptions. The obligation begins with the first employee, not the fifth.

Two practical points for trades:

• Subcontractors. If a sub cannot produce a certificate of insurance, your policy may be charged for them at audit. Collect certificates before work starts, not at renewal.
• Class codes. Your premium depends on how work is classified. Miscoded payroll is one of the most common and most correctable overcharges we find.

4. Tools, equipment, and inland marine

A general liability policy does not replace your own stolen tools. That is inland marine or contractors equipment coverage, which follows tools and equipment to the job site and in transit.

Two things to confirm: whether it pays replacement cost or depreciated value, and whether small tools are scheduled individually or covered as a blanket amount. Theft from a locked trailer overnight is the claim we see most often.

The one to add once you are established

A commercial umbrella raises the liability limit above your general liability and commercial auto policies. Many construction contracts now require limits that a standard policy alone does not reach, and an umbrella is usually the cheaper way to get there.

Before you sign the next contract

Read the insurance section of the contract before you sign it, not after. It will specify limits, additional insured wording, and sometimes a waiver of subrogation. Send it to your agent. Matching the policy to the contract afterwards is harder and occasionally impossible.

Common questions

How much general liability do I need?

Most Pennsylvania construction contracts require at least $1,000,000 per occurrence and $2,000,000 aggregate. Read the contract before quoting, because larger general contractors and municipal work often demand higher limits, which an umbrella can satisfy more affordably than raising the base policy.

What is a certificate of insurance?

A one-page proof of coverage issued by your carrier or agent. You will be asked for one constantly. We issue them for our clients, usually same day, and can set up automatic renewal certificates so you are not chasing paperwork before a job starts.

Do I need workers compensation if I only use subcontractors?

You need coverage for your own employees. For subs, you need their certificates. If a sub cannot prove coverage, Pennsylvania rules generally allow the carrier to treat them as your employee, and you will be charged for their payroll at audit. Collect certificates before work starts.

What does additional insured mean?

It extends your liability coverage to another party, usually the general contractor or property owner, for claims arising out of your work. Contracts often specify particular endorsement forms. Send the contract to your agent rather than assuming a standard endorsement satisfies it.

Are my tools covered if stolen from my truck overnight?

Only under a contractors equipment or inland marine policy. Neither general liability nor a personal auto policy covers tools. Check whether yours pays replacement cost, and whether there is a limit per item.

Do I need commercial auto for one pickup?

If it is titled to the business, lettered, or used primarily for work, yes. Personal auto policies contain business-use exclusions that carriers read closely at claim time.

Before you bid the next job

Send us the insurance requirements page of the contract. We will tell you within a day whether your current policies satisfy it, and what it would cost to close any gap.

Talk to a local agent

McDowell Associates has helped Greensburg families and businesses since 1900. We are an independent agency, so we compare carriers instead of selling one company’s product. Call (724) 834-2350, send us a message, or start a quote below.

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This article is general information, not legal or coverage advice. Coverage terms vary by policy and carrier. Talk with a licensed agent about your own situation.