Pennsylvania contractor insurance requirements

Workers' comp in Pennsylvania

Pennsylvania employers with one or more workers, including part-time, seasonal and family employees, must carry workers' comp. Corporate officers must be included unless an approved exemption is on file.

The agency in charge is the Pennsylvania Bureau of Workers' Compensation. It can tell you whether a specific business needs coverage, and most states let you look up an employer's policy online.

Contractor licensing and insurance

Pennsylvania home improvement contractors must register with the Attorney General and carry at least $50,000 in personal injury liability and $50,000 in property damage coverage.

Indemnity and additional insured clauses

Pennsylvania's statute (68 P.S. § 491) covers clauses that indemnify design professionals for their own errors. For other construction clauses, Pennsylvania courts enforce indemnity for a party's own negligence only when the clause says so clearly.

What to check on a contractor COI for a Pennsylvania project

1. Workers' comp. Nearly every contractor with employees needs it in Pennsylvania. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Pennsylvania is listed on the workers' comp policy.
2. General liability. A Pennsylvania license only shows the contractor met the state's floor. Compare each limit on the COI with your project requirements, which are usually higher.
3. Additional insured. The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. Dates. Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

Forsured checks every contractor COI against your project requirements, then keeps checking for the life of the project. Send us one project's requirements and a contractor COI or two for a free COI risk check.