Vermont contractor insurance requirements

Workers' comp in Vermont

Vermont businesses with one or more employees must carry workers' comp, with a few exceptions. Up to four corporate officers or LLC members can be excluded, with prior approval from the Department of Labor.

The agency in charge is the Vermont Department of Labor. 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

We found no statewide general liability minimum tied to a general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

Indemnity and additional insured clauses

Vermont has no general construction anti-indemnity statute. Courts there generally enforce a clause that covers a party's own negligence only when the clause says so clearly (see Tateosian v. State, 945 A.2d 833 (Vt. 2007)).

What to check on a contractor COI for a Vermont project

1. Workers' comp. Nearly every contractor with employees needs it in Vermont. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Vermont is listed on the workers' comp policy.
2. General liability. Vermont doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
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.