Rhode Island requires contractors registered with the CRLB to carry liability insurance as a condition of registration. Beyond that, 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 Rhode Island trades shop should expect to carry:
- General liability. Rhode Island CRLB requires registered contractors to maintain commercial general liability insurance; verify the current minimum limits on the CRLB registration page. $1M per occurrence / $2M aggregate is the typical commercial job requirement. Source: Rhode Island CRLB (https://crb.ri.gov/).
- Workers' compensation. Rhode Island is mandatory. Under R.I. Gen. Laws §28-29-6, almost every Rhode Island employer with 1 or more employees must secure workers' compensation. Sole proprietors, independent contractors, and certain corporate officers may file exclusion affidavits. Beacon Mutual Insurance Company is the Rhode Island-specific workers' comp carrier; standard-market carriers also write RI policies. Source: RI DLT Workers' Compensation (https://dlt.ri.gov/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 Rhode Island, AGC Rhode Island, PHCC of Rhode Island, 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.