Hiring the right contractors is a big responsibility for any Ohio business. Whether you’re overseeing repairs, renovations, or new construction, you’re trusting those workers to show up, do the job, and do it right. But before anything starts, there’s one crucial item that often gets overlooked: verifying the contractor’s insurance.
It’s not just paperwork—it’s protection for your business. Here’s how to make sure the people you hire are properly insured and compliant with Ohio law.
Why It’s Critical to Verify Contractor Insurance
Relying on a contractor’s word—or even a printed certificate—can leave your company exposed to serious legal and financial consequences. If a contractor doesn’t actually have active insurance and someone gets hurt or damage occurs, your business could be liable.
Ohio has its own requirements that differ from many other states. For example, workers’ compensation insurance must be purchased directly through the Ohio Bureau of Workers’ Compensation (BWC). Contractors operating here may not be following the same practices you’re used to seeing elsewhere.
Verifying insurance isn’t about mistrust—it’s about safeguarding your company, complying with state laws, and staying in control of your projects.
What Types of Insurance Should Ohio Contractors Carry?
Understanding the coverage a contractor should have makes verification easier. Here are the key types of policies to look for:
General Liability Insurance
Protects against third-party claims, such as property damage or bodily injury caused by the contractor during work.
Workers’ Compensation Insurance
Required by Ohio law and must be obtained through the Ohio BWC. This policy covers medical care and wage replacement for injured workers.
Commercial Auto Insurance
Applies if the contractor uses vehicles for business. Personal auto policies typically won’t cover collisions or damage during work-related use.
Professional Liability Insurance (Errors and Omissions)
Important for contractors offering specialized design, consulting, or installation services. This covers claims related to mistakes or oversight that cause financial loss.
Umbrella Insurance
Adds an extra cushion of liability coverage beyond the primary insurance limits. This is helpful on high-risk or multi-phase projects.
Step 1: Request a Certificate of Insurance
Start by asking the contractor for a Certificate of Liability Insurance (COI). It should include:
- Coverage types
- Policy limits and effective dates
- Insurer information
- Workers’ compensation confirmation through Ohio BWC
But don’t stop there. While COIs are common and useful, they do have limitations. They’re not legally binding documents and can be outdated or misleading.
Step 2: Double-Check with the Insurance Provider
Once you’ve reviewed the COI, verify it with the actual insurance carrier. This protects your business from:
- Expired policies
- Imposed exclusions that weren’t listed on the certificate
- Intentional or unintentional coverage misrepresentation
Call or visit the insurance company’s website using the contact details on the COI. Ask for:
- Policy status (active/inactive)
- Accurate expiration dates
- Confirmation of coverage types and limits
Insurers are accustomed to these verifications. It’s considered standard due diligence—and a smart move.
Step 3: Verify Workers’ Comp with the Ohio BWC
Ohio makes it easy to verify workers’ comp coverage because it’s all handled through the state.
Use the Ohio BWC Coverage Verification Tool to find out if the contractor is:
- Currently covered
- Up to date on payments and registration
- Operating without compliance issues
If a contractor isn’t listed, their workers’ comp policy may not be active—or may not exist at all. That’s a serious concern, especially if a workplace injury occurs under your oversight.
Step 4: Ask to Be Listed as an Additional Insured
For added protection, request that your business be named as an “Additional Insured” on the contractor’s general liability insurance.
This can give you:
- Legal standing if a claim is made
- Partial coverage under their policy
- Greater control over potential risk exposure
The contractor can easily request an updated COI from their insurer to reflect this.
Step 5: Use Independent Verification Tools
In addition to checking with the carrier and the BWC, you can take advantage of third-party resources, such as:
- Insurance provider portals to confirm policies
- Industry verification services
- State licensing boards (for licensing status and insurance compliance)
These tools help you dig deeper and ensure what you’re being shown is accurate and up to date.
How One Ohio Business Avoided a Costly Mistake
John, a general contractor in Cincinnati, was preparing to subcontract a residential siding job. The subcontractor showed him a COI, claiming proper general liability and workers’ comp coverage in place.
John made one quick verification call to the insurance provider. Good thing he did—the workers’ comp policy had actually lapsed. He paused the job and required updated proof before allowing work to proceed.
Just days later, a crew member was injured on-site. Because the policy was reinstated before the incident, John avoided potential legal and medical expenses—possibly saving his business thousands.
Small steps can make a big difference.
Ohio-Specific Considerations to Keep in Mind
- Only the Ohio BWC provides workers’ comp. If it’s not verified on the BWC site, it doesn’t exist.
- Independent contractors may be exempt—but it’s not always clear-cut. Any gray area should prompt a formal coverage review.
- Policy requirements vary by trade and region. Speak with a local insurance expert to understand specific thresholds for cities like Cleveland, Columbus, or Akron.
- Premium discounts and audits affect reliability. A solid safety history means more than a lower premium—it shows the contractor takes compliance seriously.
What If a Contractor Isn’t Properly Covered?
It happens. You review the paperwork, double-check the sources, and something’s off.
Here’s what you should do:
- Ask for updated policies or newer COIs
- Require them to bring coverage into compliance before breaking ground
- Choose a different contractor with proper coverage in place
No job is worth risking your business for.
Final Thoughts
Verifying a contractor’s insurance doesn’t take long—but it can save you a world of trouble. These small preventative steps ensure your Ohio business stays protected, compliant, and on track.
When you’re pressed for time or want extra help navigating the process, we’re here to support you—whether it’s reviewing a contractor’s policy or helping you strengthen your own coverage.
Ready to Feel More Confident About Insurance?
Let’s talk. We’ll walk you through the process and make sure your project and your business are properly protected in Ohio.
Start with a tailored quote at Hamsher Insurance.
Or schedule a quick call with one of our local Ohio agents:
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Want more on Ohio commercial insurance trends? Visit the Hamsher Insurance Blog for updates and insights built specifically for Ohio contractors and small business owners.
Resources You Can Trust:
- Ohio Bureau of Workers’ Compensation
- BWC Coverage Verification Tool
- Insurance Journal: Legal Insights for Contractors
- U.S. Small Business Administration: Insurance Guide
Knowing your contractor’s insurance status keeps your business safe, your projects moving—and your peace of mind intact.
Reach out when you’re ready. We’re here to help.