Insurance in Connecticut

Connecticut requires Home Improvement Contractors and New Home Construction Contractors to maintain commercial general liability insurance as a condition of registration. The market (general contractors, commercial customers, larger residential customers, municipal permit offices) will require proof of coverage beyond minimums before you step on site. Minimum coverages a new Connecticut trades shop should expect to carry: - General liability. Connecticut HIC registration requires proof of general liability insurance; verify current minimum limits on the DCP HIC page. $1M per occurrence / $2M aggregate is the typical commercial job requirement. Source: Connecticut DCP Home Improvement Contractor (https://portal.ct.gov/DCP/License-Services-Division/License-Division/Home-Improvement-Contractor-Registration). - Workers' compensation. Connecticut is mandatory. Under C.G.S. §31-284, almost every Connecticut employer with 1 or more employees must secure workers' compensation. Sole proprietors and single-member LLC owners may exclude themselves by filing the appropriate form with the Workers' Compensation Commission. Source: Connecticut Workers' Compensation Commission (https://portal.ct.gov/wcc). - Commercial auto. Your personal auto policy almost certainly excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. - Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. - Professional liability (errors and omissions). Rarely needed for pure trades work but useful if you do design-build or estimating for others. - Umbrella. A $1M or $2M umbrella is cheap relative to what it protects. Shop the market. Trade association programs (ABC Connecticut, AGC of Connecticut, PHCC of Connecticut, IBEW/NECA-affiliated shops) often have group insurance programs that beat street-rate premiums for the trade. Connecticut's Home Improvement Guaranty Fund and New Home Construction Guaranty Fund provide consumer claim coverage on top of a registered contractor's own insurance. Never let coverage lapse during an active job. A 1-day gap on a multi-month project is enough to void a claim if something happens during the gap.