Question 1

What insurance do Pennsylvania contractors need?

Accepted Answer

At minimum, PA contractors need workers' compensation (required by law), general liability ($1M/$2M is standard), and commercial auto insurance. Most commercial projects also require builder's risk, umbrella/excess liability, and surety bonds for public work. Philadelphia and Pittsburgh have additional requirements for projects within city limits.

Question 2

How much does workers' comp cost for PA construction?

Accepted Answer

Workers' compensation rates in Pennsylvania vary by trade classification. General carpentry: $8–$14 per $100 of payroll. Roofing: $15–$25. Electrical: $5–$10. Plumbing: $4–$8. A 10-person framing crew with $500,000 annual payroll might pay $40,000–$70,000/year for workers' comp. Experience modification rates (EMR) can reduce or increase these costs by 20-40%.

Question 3

Do PA subcontractors need their own insurance?

Accepted Answer

Yes — Pennsylvania general contractors are liable for uninsured subcontractors' workers' compensation claims. Most GCs require subs to carry their own GL ($1M/$2M), workers' comp, and commercial auto before stepping on site. Certificates of insurance (COIs) must be provided before work begins. RISKX can issue COIs within hours of binding coverage.

Pennsylvania Construction Insurance | RISKX