What Does It Mean When A General Contractor Says That They Are “Fully Insured”?

October 2, 2021

"Fully Insured" May Not Mean What You Think It Does

Unfortunately, there is no such thing as “fully insured” for any type of insurance.

That is true whether one is discussing Auto, Home, or any type of Business Insurance.

You see, though many insurance policies are very broad in the coverage they provide, exclusions and limitations exist with any program.

When discussing insurance with a potential contractor, it is always fair to ask “What specific forms of coverage do you have in place?”

To start, a Contractor should have the following policies in their portfolio:

General Liability Insurance Coverage
Business Auto Coverage and
Workers Compensation and NYS Disability (if they have employees.)

When requesting an estimate for work they are going to do on your behalf, you can also ask your contractor if they can provide you with a “Certificate of Insurance” that shows the types of policies and limits of the coverage they carry.

If they are “fully insured” as claimed, this should be easy to obtain. A phone call to their agent to provide the certificate directly to you as a customer is all it should take.

On the certificate, you might ask that the insurance agent actually state under the “Description of Operations” section, what type of contracting classifications they are insured for.

Any Certificate provided should show a current date on the top of the form and effective dates for the policies they have that fall within the date the certificate is issued. A sample Certificate of insurance can be see below:

Any contractor who purports that they are “fully insured” should be quick to provide you with a Certificate as outline above.

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Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

Factors You Can’t Easily Control These factors are built into your profile, but still play a major role: Your location: Claim trends, traffic, and weather patterns where you principally drive. Your age and driving experience: Especially for younger drivers. Other drivers in your household: Their age and driving history. The vehicle you own: Unique to the Year, Make, Model, and Sub-model’s damageability and cost of parts/labor. These factors significantly influence price differences, but they don’t tell the whole story. Factors You Can Control This is where habits and wise decisions can make a real difference: Your driving habits: Minimizing tickets and accidents can have a direct impact. Your coverage choices: Liability limits, deductibles, and optional coverages can vary widely. Your insurance consistency: Avoiding lapses in coverage. Your annual mileage: How much and how often you drive. Discount opportunities: Bundling, pay-in-full, NYS defensive driving course. Your Insurance Score (Yes—You Can Influence It) Insurance companies use a credit-based insurance score as part of their rating process. While it’s based on financial behaviors, it is not permanent—and it can be improved over time. Simple habits like: Paying bills on time Reducing outstanding debt Avoiding excessive credit inquiries… can positively impact your score—and in turn, your insurance rates. Your insurance score is under your control and a worthy mid to long-term project in and of itself. For more information on what you can do to positively influence your score, see: Great 8 Tip #8 - What's Credit Got to Do with Insurance? How Can I Improve My Auto Insurance Score Why Comparing Rates Doesn’t Work When someone says, “I only pay…” , the uniqueness of their fingerprint is missing. What are their: Deductibles Driving history Insurance score Household profile Coverage limits: what they may be giving up in terms of protection. Price without context can be misleading and discouraging.