Yes. A broker reads the insurance section of your contract, finds what your policy is missing, and shops one application to many insurance companies. Most gaps have a cheap fix and an expensive one, and a broker prices both. A broker can also tell you which requirements your customer will bend on. Who this is for: contractors whose new contract asks for insurance their policy does not have.
The short version
- A broker starts with your contract, not with a quote.
- One application goes to many insurance companies, so you see several ways to meet the same requirement.
- Most gaps have a cheap fix and an expensive fix. A broker prices both.
- Some requirements can be negotiated. A broker can tell you which ones.
- Send the contract before you sign. Fixes cost less with two weeks of lead time than with two days.
How does a broker match a policy to my contract?
A broker works from the contract backward. They list every policy, limit, and piece of extra wording the insurance section asks for, then compare that list to your policy line by line. What is left is the gap. See how to compare your policy with a contract.
Only then do they shop. One application goes to the companies that actually want your trade. A quote site gives you one answer. A broker gives you several, including specialty insurers you cannot reach yourself. See which markets you cannot access directly.
What if the contract asks for more than I can afford?
This is the normal case, not the rare one. Almost every gap has two ways to close it, and the prices are far apart. A broker prices both before you choose. A per incident limit is the most the policy pays for any one incident. An umbrella is a second layer of coverage above your other liability policies. The ranges below are illustrative.
| What the contract asks for | Expensive way to meet it | Cheaper way to meet it |
|---|---|---|
| $2,000,000 per incident on general liability | Replace the whole policy with a higher limit, often 30 to 60 percent more premium | Keep your $1,000,000 policy and add a $1,000,000 umbrella, roughly $600 to $2,500 a year. Only if the contract lets you stack them and the umbrella insurer passes the same rating and licensing tests. |
| Your customer can use your liability policy if they get sued because of your work (additional insured) | A separate change added to your policy, one extra page per customer, at $50 to $300 each | Blanket wording that automatically covers the customer you signed the contract with, often at no charge. Reaching an owner or lender above that customer takes a broader form, which usually leaves out work after it is finished. |
| Your insurance company agrees not to go after your customer to recover money it paid (waiver on workers comp) | A blanket waiver for all customers, 2 to 5 percent of the comp premium in most competitive states. A few states set the charge themselves or use their own form, so ask about your state. | A waiver for this one job, priced on that job's payroll only |
| Pollution coverage (fumes, dust, spills, or mold from your work) | A full stand alone policy, $2,500 and up | A pollution add on to your liability policy, or a project only policy, often $750 to $1,500 |
Can a broker get the contract requirements changed?
Often, yes. Many requirement lists are copied from a template written for a company ten times your size. Owners and general contractors change them more often than you would guess when a broker explains in writing why one does not fit.
Often, yes. Many requirement lists are copied from a template written for a company ten times your size. Owners and general contractors change them more often than you would guess when a broker explains in writing why one does not fit.
What should I send the broker to get started?
Four things get you a real answer fast:
- The contract, or just its insurance section.
- Your current policy pages, the front pages listing your limits and dates.
- Your claims history report, called loss runs.
- Your payroll broken out by job type.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: An electrical contractor in Texas with six employees wins a $210,000 subcontract on a school addition. The requirements ask for $2,000,000 per incident on general liability, a $3,000,000 umbrella, pollution coverage, and the school district named on his liability policy for ongoing and finished work. He carries $1,000,000 and nothing else on that list.
What went wrong: His current agent quotes a full replacement: a new $2,000,000 liability policy, a $3,000,000 umbrella, and a stand alone pollution policy. That runs about $14,800 a year, roughly $9,000 more than he pays now. He nearly walks away from the job.
What it cost: A broker asks the district about the pollution line. The district agrees it was meant for the mechanical trades and strikes it for electrical. The broker keeps the $1,000,000 policy and adds a $3,000,000 umbrella for about $2,900. This is public work, so the district asked two things of the insurer: an A- VII or better financial strength rating and a license in the state. The broker used one that met both. His blanket wording already covers the general contractor he signed with while work goes on, but the school district sits above that contractor and blanket wording will not reach it. Adding the district, and keeping that protection after the job is finished, took two added pages at about $350. New total: about $9,050 a year. Illustrative figures.
The fix: The contract did not change, except for one line the customer was happy to strike. The gap between $14,800 and $9,050 was a broker who priced the cheap way to meet each requirement, and asked before buying.
Frequently asked questions
Q: Can a broker find insurance that meets my contract and my budget?
Usually, yes. A broker reads the insurance section, finds the gaps in your policy, and shops one application to many insurance companies. You see the cheapest way to close each gap, and which requirements your customer may drop.
Q: What if no insurance company will meet the contract at a price I can pay?
A broker can ask your customer to change it, which often works when the requirement was copied from a template for a bigger company. If the customer holds firm, the broker can add an umbrella layer or use a specialty insurer that passes your contract's tests.
Q: Does it cost more to buy through a broker?
No. The insurance company pays the broker out of the premium, so the same policy costs the same either way. A separate broker fee should be disclosed in writing before you buy, and most states require that. See whether a broker adds to your cost.
Q: How long does it take a broker to find coverage that fits a contract?
A contract review usually takes a day. Standard quotes come back in a few days. Umbrella and specialty quotes can take one to two weeks.
Q: Should I sign the contract first and sort out insurance after?
Get the insurance section reviewed before you sign. Once you sign, the requirements are yours to meet at whatever price.
Q: Will a cheaper policy that meets the contract leave me with worse coverage?
Not if the broker matches limits, extra wording, and exclusions, not just price. Ask to see the quotes side by side with every difference marked. A low price with a hidden exclusion for your main work is not a savings.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Finding coverage that meets the insurance section of a contract without blowing up the budget is what our contractor clients ask us to do most.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.