Short answer
Most US property managers and general contractors require vendors to carry at least $1,000,000 per occurrence and $2,000,000 aggregate general liability, statutory workers’ compensation with $1,000,000 employers liability, and $1,000,000 combined single limit commercial auto. High-hazard trades — roofing, electrical, tree work, elevator and structural — commonly add $1,000,000 to $5,000,000 of umbrella coverage, and completed-operations additional insured status is treated as non-negotiable.
Limits by trade
| Trade | Hazard | GL each occ / agg | Umbrella | Auto | Workers' comp | Also require |
|---|---|---|---|---|---|---|
| Janitorial / cleaningFrequency risk — slips, chemical exposure, property access | Low | $1M / $2M | Optional | $1M CSL | Statutory + $1M EL | Crime / employee dishonesty where keys are held |
| Landscaping / groundsVehicles and equipment do more damage than the work itself | Low | $1M / $2M | Optional | $1M CSL | Statutory + $1M EL | Confirm no height or tree-work exclusion |
| Painting / drywallOverspray and surface-prep damage claims are common | Low | $1M / $2M | $1M | $1M CSL | Statutory + $1M EL | Completed operations; lead/asbestos where pre-1978 stock |
| PlumbingWater damage propagates through multiple units quickly | Medium | $1M / $2M | $1M–$2M | $1M CSL | Statutory + $1M EL | Completed operations mandatory; per-project aggregate on large jobs |
| HVACCondensate and refrigerant losses surface long after install | Medium | $1M / $2M | $1M–$2M | $1M CSL | Statutory + $1M EL | Completed operations; pollution for refrigerant work |
| Appliance / general handymanClassification mismatch is the usual coverage failure here | Medium | $1M / $2M | Optional | $1M CSL | Statutory + $1M EL | Confirm scope is not broader than the policy classification |
| ElectricalFire is the loss, and fire claims are catastrophic and delayed | High | $1M / $2M | $1M–$5M | $1M CSL | Statutory + $1M EL | Completed operations mandatory; per-project aggregate |
| RoofingFalls, torch-down fire, and water intrusion discovered years later | High | $1M / $2M | $2M–$5M | $1M CSL | Statutory + $1M EL | Completed operations mandatory; confirm no hot-work exclusion |
| Tree workHeights, chainsaws, and damage to adjacent property | High | $1M / $2M | $1M–$2M | $1M CSL | Statutory + $1M EL | Confirm no height exclusion; verify equipment coverage |
| Elevator / structuralLife-safety exposure and very long claim tails | High | $2M / $4M | $5M+ | $1M CSL | Statutory + $1M EL | Completed operations for the full statute of repose |
| Pest controlThe exact exposure is commonly carved out of a standard GL policy | Medium | $1M / $2M | $1M | $1M CSL | Statutory + $1M EL | Pollution liability — chemical application is often GL-excluded |
| Security servicesThe loss you are insuring against is frequently excluded by default | Medium | $1M / $2M | $1M–$2M | $1M CSL | Statutory + $1M EL | Confirm no assault-and-battery exclusion; professional liability |
| Snow removalSlip-and-fall frequency plus a short, contested causation window | Medium | $1M / $2M | $1M–$2M | $1M CSL | Statutory + $1M EL | Confirm snow and ice operations are not excluded |
| Architect / engineerThe exposure is design error, which general liability does not cover | Medium | $1M / $2M | $1M | $1M CSL | Statutory + $1M EL | Professional liability (E&O) $1M–$2M, claims-made with tail |
GL = commercial general liability. CSL = combined single limit. EL = employers liability.
The endorsements matter more than the numbers
A vendor with $5,000,000 in limits and no additional insured endorsement has bought protection for themselves, not for you. The list below costs the vendor very little and does most of the actual work.
| Endorsement | Form | When to require it |
|---|---|---|
| Additional insured — ongoing operations | CG 20 10 (or blanket equivalent) | Every vendor, every trade |
| Additional insured — completed operations | CG 20 37 (or blanket equivalent) | Anything that can fail after the job ends |
| Primary and non-contributory | CG 20 01 (or blanket wording) | Every vendor — it keeps their claim off your policy |
| Waiver of subrogation — general liability | CG 24 04 (or blanket) | Every vendor |
| Waiver of subrogation — workers' compensation | WC 00 03 13 (or state equivalent) | Any vendor whose employees are physically on your property |
| Per-project aggregate | CG 25 03 / CG 25 04 | Large jobs, where a shared annual aggregate would be meaningless |
| Notice of cancellation to certificate holder | Carrier-specific | Where the carrier will write it — the only real defense against a silent lapse |
Not sure what these forms do? Every one is defined in the glossary.
Frequently asked
- What insurance should I require from a vendor?
- At minimum, commercial general liability at $1,000,000 per occurrence and $2,000,000 aggregate, statutory workers' compensation with $1,000,000 employers liability, and $1,000,000 combined single limit commercial auto — plus additional insured status for both ongoing and completed operations, primary and non-contributory wording, and waivers of subrogation. High-hazard trades add umbrella coverage on top.
- Should insurance requirements vary by trade?
- Yes, by hazard rather than by contract value. A $900 electrical repair can cause a building fire; a $90,000 painting contract rarely causes a severe injury. Two or three tiers is usually enough to capture the difference without becoming unenforceable.
- How many requirement tiers should I have?
- Two or three. A bespoke schedule per vendor becomes a stack of exceptions, and exceptions are where uninsured vendors hide. Tiers you actually enforce beat a perfect schedule you cannot audit.
- What if a vendor cannot meet the required limits?
- Options are a documented, time-boxed exception approved by whoever owns the risk, requiring an umbrella that closes the gap, or narrowing their scope to lower-hazard work. What fails is an undocumented exception that outlives the person who granted it.
- Are these requirements legally binding standards?
- No. They are commonly observed market practices collected for reference. The limits and endorsements you put into a contract should be set with your broker and counsel against your own exposure, your policy, and your owner and lender obligations.
Check your vendors against this list automatically
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