Is your contractor's coverage actually enough?
Most homeowners ask for a COI, glance at the limits, and file it. We score the contractor's coverage against industry-standard thresholds for your project's value tier and tell you whether it's enough or whether you're underinsured.
- GL per-occ ✓ (need ≥ $1,000,000)
- GL aggregate ✓ (need ≥ $2,000,000)
- Umbrella ✗ (need ≥ $1,000,000)
$1M / $2M GL plus a $1M umbrella is the contemporary norm for kitchens, baths, and small additions. Add a builder's risk policy if you are paying any deposit.
Estimate only. Outputs are computed from publicly disclosed calibration constants and your inputs. Confirm any number with a licensed contractor or local building department before relying on it for a contract or filing.
Methodology
We map project value to one of four tiers — small ($0-25K), mid ($25-100K), large ($100-500K), luxury ($500K+) — and compare the contractor's GL per-occurrence, GL aggregate, and umbrella against tier-specific minimums.
Tier minimums are anchored to industry-standard COI requirements documented in NAHB risk-management briefs and IRMI's commercial-lines benchmarks. The structural pattern: $1M / $2M GL plus optional umbrella for small projects, $1M / $2M plus $1M umbrella for mid, $2M / $4M plus $2M umbrella for large, $2M / $4M plus $5M+ umbrella for luxury.
The score is a weighted sum: GL per-occurrence (40 points), GL aggregate (30), umbrella (30). Verdicts: 90+ = excellent, 70-89 = adequate, 40-69 = underinsured, under 40 = dangerous. The verdict is one signal, not the only one — workers' comp, builder's risk, and additional-insured endorsements matter and are not scored here.
How this differs from Angi or Thumbtack
Angi, Thumbtack, and HomeAdvisor all collect COI information at contractor signup but do not surface tier-aware adequacy verdicts to homeowners. The COI is treated as an internal contractor-quality input, not an externalized homeowner-decision tool. AskBaily's structural posture is the reverse: insurance adequacy is a homeowner question that deserves a homeowner-facing tool.
For high-stakes projects ($500K+), this tool's verdict should be supplemented by a licensed insurance broker or attorney's review of the actual COI, including additional-insured endorsements, completed-operations coverage, and policy effective dates. The tool's verdict is a first-pass screen; the broker/attorney is the second-pass diligence.
Frequently asked questions
What is a 'GL per-occurrence' limit?
General liability per-occurrence is the maximum the policy pays for any single claim. Industry-standard minimum is $1M per-occurrence; major projects justify $2M. The aggregate limit (separate number) is the policy's annual maximum across all claims.
Why does umbrella matter on top of GL?
Umbrella sits on top of the underlying GL and provides excess coverage in case a single claim or aggregate of claims exceeds the GL limit. On a $500K+ project where a serious accident or major property damage could exceed $2M, an umbrella is the only path to adequate coverage.
Is workers' comp checked here?
Not in this tool. Most US states require WC for any contractor with employees; sole proprietors on small jobs may be exempt depending on jurisdiction. The COI should list WC limits and policy number; verify those separately with your contractor.
What about builder's risk insurance?
Builder's risk is a separate policy that protects the project itself during construction (fire, vandalism, weather). It's typically purchased by the homeowner or financed into the loan. This tool checks the contractor's liability-side coverage; builder's risk is a parallel question.
Does this tool guarantee my contractor is safe?
No. Insurance adequacy is one signal. License status, claims history, project references, and BBB record all matter. The Free Contractor License Check tool is the right second screen; AskBaily's matching engine combines all signals when you request a match.
Want Baily to do this for you?
Skip the calculator. Tell Baily your project and city — she will do the math, cite the local source, and pre-seed your scope.