Insurance in Delaware

Delaware does not require most contractors to carry a specific insurance amount as a condition of state trade licensure. The market (general contractors, commercial customers, larger residential customers, municipal permit offices) will require proof of coverage before you step on site. Minimum coverages a new Delaware trades shop should expect to carry: - General liability. $1M per occurrence / $2M aggregate is the typical commercial job requirement. Covers bodily injury and property damage arising from your work. - Workers' compensation. Delaware is mandatory. Under 19 Del. C. §2301 et seq., every Delaware employer must secure workers' compensation for its employees. Sole proprietors, partners, and single-member LLC owners may exclude themselves by filing the appropriate form with the Office of Workers' Compensation. Source: Delaware Office of Workers' Compensation (https://labor.delaware.gov/divisions/industrial-affairs/workers-compensation/). - 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 Delaware, AGC of Delaware, PHCC of Delaware, IBEW/NECA-affiliated shops) often have group insurance programs that beat street-rate premiums for the trade. 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.