General Contractor Insurance: Leading the Pack in Washington State
The Short Answer
To lead a project in Washington, a General Contractor must maintain a $30,000 Continuous Surety Bond and a $250,000 Combined Single Limit liability policy. However, because GCs carry "vicarious liability" for their subcontractors, the Hood Insurance Agency recommends a $1,000,000 limit with a Blanket Additional Insured endorsement. This ensures that customers requiring that you add them as Additional Insured are automatically granted that status if required by written contract - no waiting for days or weeks for the carrier to add them and get back to you.
Are You a "Paper Wolf" or a Working GC?
In the insurance world, we look at GCs in two ways. Both are vital, but their "dens" are built differently:
The Paper Contractor: You spend more time with a stylus than a sledgehammer. You manage the bids, the permits, and the subs. Your risk is Liability Transfer—making sure the subs' mistakes don't become your bankruptcy.
The Working GC: You’re in the trenches with your crew. You’ve got your own employees and your own tools. Your risk is Direct Exposure—injuries on the job and property damage caused by your own paws.
The Dry Truth: Whether you’re swinging a hammer or just a clipboard, Washington law treats you as the Alpha. If a deck collapses three years from now, they aren't going to look for the subcontractor who’s already moved to Arizona—they’re coming for you.
What Kind of Contractor Are You?
The Alpha (General Contractor) You manage the project, the permits, and the pack. You hire subcontractors to handle the specialized trades while you keep the big picture in focus. Your risk is Liability Transfer—ensuring their mistakes don't bite your business. [Stay on this page for GC-specific bonds and liability]
The Lone Wolf (Specialty Contractor) You’re a master of your trade—plumbing, electrical, HVAC, or finishing. You do the work yourself, you don’t use subs, and you keep your operation lean and mean. You don’t need the complexity of a GC policy; you need a hard-hitting specialty plan that protects your tools and your reputation. 👉 Join the Specialty Pack Here
General Contractor FAQs: Rules of the WA Wild
1. Why did the GC bond jump to $30,000?
As of July 2024, Washington L&I updated the bond requirements because, frankly, $12,000 didn't cover much more than a few sheets of high-end plywood. The **$30,000 bond** is the state's way of ensuring that if you "ghost" a project or fail to pay your subs, there is actual meat on the bone for the victims to claim.
2. What is "Vicarious Liability" and why should I care?
Vicarious liability is the legal way of saying, "It wasn't my fault, but I'm still paying for it." As a GC, you are legally responsible for the actions of your subcontractors. If your plumber floods a basement, the homeowner sues you. We make sure your policy has the teeth to fight back, or at least the deep pockets to handle the settlement.
3. Do I really need to check my subcontractors' insurance every time?
Only if you like keeping your money. If a sub's insurance has lapsed and they get hurt or cause damage, L&I and the courts will look at you as the "Employer of Record." We recommend the "Pack Protocol": Never let a sub on-site without a COI (Certificate of Insurance) that lists you as an Additional Insured.
4. Can I get a bond and insurance on the same day?
Usually, yes. We know that in the Lynnwood construction scene, a "maybe" on a bid becomes a "no" if you can't show paperwork. We move fast so you can stay at the head of the pack.
5. I’m a one-man show with no subcontractors. Do I still need a General Contractor license? In Washington, if you perform more than two unrelated trades on a single project, L&I may require you to register as a General Contractor. However, if you stick to your specialty (like just electrical), you can register as a Specialty Contractor with a lower bond ($15,000). If you're a "Solo Wolf" looking for the leanest, most effective coverage for your specific trade, check out our
Don’t leave your business vulnerable!
Contact Hood Insurance today for a free consultation on general liability insurance and secure insurance coverage you need.