Reference

Vendor insurance requirements by trade

What property managers and general contractors commonly require, trade by trade — limits, umbrella, and the endorsements that do the real work.

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

TradeHazardGL each occ / aggUmbrellaAutoWorkers' compAlso require
Janitorial / cleaningFrequency risk — slips, chemical exposure, property accessLow$1M / $2MOptional$1M CSLStatutory + $1M ELCrime / employee dishonesty where keys are held
Landscaping / groundsVehicles and equipment do more damage than the work itselfLow$1M / $2MOptional$1M CSLStatutory + $1M ELConfirm no height or tree-work exclusion
Painting / drywallOverspray and surface-prep damage claims are commonLow$1M / $2M$1M$1M CSLStatutory + $1M ELCompleted operations; lead/asbestos where pre-1978 stock
PlumbingWater damage propagates through multiple units quicklyMedium$1M / $2M$1M–$2M$1M CSLStatutory + $1M ELCompleted operations mandatory; per-project aggregate on large jobs
HVACCondensate and refrigerant losses surface long after installMedium$1M / $2M$1M–$2M$1M CSLStatutory + $1M ELCompleted operations; pollution for refrigerant work
Appliance / general handymanClassification mismatch is the usual coverage failure hereMedium$1M / $2MOptional$1M CSLStatutory + $1M ELConfirm scope is not broader than the policy classification
ElectricalFire is the loss, and fire claims are catastrophic and delayedHigh$1M / $2M$1M–$5M$1M CSLStatutory + $1M ELCompleted operations mandatory; per-project aggregate
RoofingFalls, torch-down fire, and water intrusion discovered years laterHigh$1M / $2M$2M–$5M$1M CSLStatutory + $1M ELCompleted operations mandatory; confirm no hot-work exclusion
Tree workHeights, chainsaws, and damage to adjacent propertyHigh$1M / $2M$1M–$2M$1M CSLStatutory + $1M ELConfirm no height exclusion; verify equipment coverage
Elevator / structuralLife-safety exposure and very long claim tailsHigh$2M / $4M$5M+$1M CSLStatutory + $1M ELCompleted operations for the full statute of repose
Pest controlThe exact exposure is commonly carved out of a standard GL policyMedium$1M / $2M$1M$1M CSLStatutory + $1M ELPollution liability — chemical application is often GL-excluded
Security servicesThe loss you are insuring against is frequently excluded by defaultMedium$1M / $2M$1M–$2M$1M CSLStatutory + $1M ELConfirm no assault-and-battery exclusion; professional liability
Snow removalSlip-and-fall frequency plus a short, contested causation windowMedium$1M / $2M$1M–$2M$1M CSLStatutory + $1M ELConfirm snow and ice operations are not excluded
Architect / engineerThe exposure is design error, which general liability does not coverMedium$1M / $2M$1M$1M CSLStatutory + $1M ELProfessional 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.

EndorsementFormWhen to require it
Additional insured — ongoing operationsCG 20 10 (or blanket equivalent)Every vendor, every trade
Additional insured — completed operationsCG 20 37 (or blanket equivalent)Anything that can fail after the job ends
Primary and non-contributoryCG 20 01 (or blanket wording)Every vendor — it keeps their claim off your policy
Waiver of subrogation — general liabilityCG 24 04 (or blanket)Every vendor
Waiver of subrogation — workers' compensationWC 00 03 13 (or state equivalent)Any vendor whose employees are physically on your property
Per-project aggregateCG 25 03 / CG 25 04Large jobs, where a shared annual aggregate would be meaningless
Notice of cancellation to certificate holderCarrier-specificWhere 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

CertShield stores your requirements once and compares every incoming certificate against them — limits, dates and endorsements — with a person reviewing every verdict before it publishes.

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