For contractors in Lynnwood and throughout Washington, March isn’t just about the weather turning; it’s the official kickoff of Bid Season. Whether you are a General Contractor (GC) eyeing a municipal project or a Specialty Trade prepping for a residential boom, your paperwork can either be your greatest asset or your biggest bottleneck.
At Hood Insurance Agency, we’ve spent over 10 years helping "The Pack" stay ahead of the curve. Before you sign your next contract, run through this 2026 compliance audit to ensure you aren’t leaving your livelihood exposed.
1. The "Bond vs. Insurance" Reality Check
We still see it every week: a contractor thinks their L&I Continuous Contractor Bond is their insurance. It isn't.
The Bond: Protects the public and the state if you fail to pay taxes or finish a job.
The Insurance (General Liability): Protects you and your business from lawsuits involving bodily injury or property damage.
2026 Check: Ensure your bond ($12,000 for General / $6,000 for Specialty) is active and filed correctly with L&I. If your bond lapses, your contractor license is suspended immediately.
2. Verify Your "Stop-Gap" Coverage
Because Washington is a "Monopolistic State" for Workers' Comp, your standard General Liability policy likely has an Employer’s Liability Exclusion.
The Risk: If an employee is injured and sues you for "substantial certainty" of injury, the state fund (L&I) won't defend you.
The Fix: You need a Stop-Gap Endorsement. If your current agent hasn't mentioned this, you have a massive hole in your defense.
3. The "Subcontractor Warranty" Trap
If you are a GC hiring subs, read your policy's fine print. Many "cheap" policies include a Subcontractor Warranty.
The Catch: If your sub doesn't have the exact same limits as you—or if you fail to collect a COI from them—your insurance company can deny your claim.
Audit Tip: March is the time to refresh your files. Do you have 2026 COIs for every sub on your roster?
4. Commercial Auto: The "Mixed Use" Danger
Are you driving a truck under a personal auto policy but with a vinyl wrap for your business? In the event of an accident on the way to a job site in Everett or Seattle, a personal carrier can deny the claim instantly.
2026 Check: Ensure your vehicles are rated for Commercial Use.
The Hood Insurance Advantage: Professional Speed
In the trades, a 48-hour delay on a Certificate of Insurance (COI) can mean losing a five-figure contract. We pride ourselves on Professional Speed. We get our contractors bid-ready with rapid COI delivery and aggressive market negotiations.
Is your current coverage full of gaps? Don't go into the busy season as a "lone wolf." Let the Pack audit your current policy.