Most Utah contractors need general liability, workers’ compensation (or a state waiver if you have no employees), commercial auto, and tools/equipment (inland marine) coverage — and as of 2026, your general liability has to meet a higher state minimum. Here’s the full checklist, what each one does, and the coverage most contractors don’t realize they’re missing.
The contractor insurance checklist
- General Liability (GL) — required to be licensed. Covers third-party bodily injury and property damage from your work. As of April 20, 2026, Utah DOPL requires licensed contractors to carry at least $1,000,000 per occurrence / $3,000,000 aggregate (up from $100K/$300K). Confirm current minimums with DOPL.
- Workers’ Compensation — required if you have employees. Covers medical bills and lost wages for work injuries. If you have no employees, Utah requires a workers’ comp waiver from the Utah Labor Commission instead.
- Commercial Auto. Your personal auto policy likely won’t cover a work truck. Commercial auto covers your business vehicles (and theft, with comprehensive).
- Tools & Equipment (Inland Marine). Covers your tools wherever they go — on the truck, at the job site, in transit. Most contractors are surprised this isn’t covered by auto or property.
- Umbrella / Excess Liability. Extra liability limits above your GL and auto — increasingly important now that bigger jobs and clients demand higher limits.
- Builder’s Risk (project-based). Covers a structure under construction against fire, theft, weather, and more.
Which ones are legally required vs. strongly recommended
| Coverage | Status in Utah |
| General Liability ($1M/$3M) | Required for licensure (2026) |
| Workers’ Comp (or waiver) | Required if you have employees |
| Commercial Auto | Required if vehicles are used for work |
| Tools/Equipment (Inland Marine) | Strongly recommended |
| Umbrella / Builder’s Risk | Situational, often essential |
The coverage contractors most often miss
The big two blind spots: tools/equipment coverage (people assume their truck policy covers stolen tools — it usually doesn’t) and adequate liability limits (many contractors are still carrying the old $100K/$300K and don’t yet meet the 2026 requirement). If you haven’t reviewed your policy this year, you may be both underinsured and out of compliance.
Frequently asked questions
Do I need workers’ comp if it’s just me? If you have no employees, Utah generally requires a workers’ comp waiver instead — but you may still want coverage for yourself.
Is general liability the same as being “bonded”? No — bonds and insurance are different. Many projects require both.
I’m already licensed — am I automatically compliant? Not necessarily. The 2026 limit increase means some contractors need to update their GL at renewal.
How do I know what I actually need? A quick coverage review matches the checklist to your trade, crew, and projects.
Make sure you’re covered — and compliant
Don’t guess your way through it. Call (801) 676-7101 or request a coverage review, and we’ll make sure your contractors insurance checks every box — including the new 2026 requirements.
Wasatch Preferred — 9133 S Monroe Plaza Way, Suite B, Sandy, UT 84070 — (801) 676-7101
This article is for general educational purposes only and is not insurance or legal advice. Requirements vary and can change — always confirm current rules with Utah DOPL and a licensed insurance professional.