For most construction bids: general liability, workers comp, commercial auto, and an umbrella, plus extra wording naming the owner. The bid package sets the exact limits, in a section called "Insurance Requirements" inside the general conditions or the sample contract. You need it all in place at award or before you start work, not when you submit the bid. Who this is for: contractors pricing a bid.
The short version
- The insurance list is in the bid package, usually in the general conditions or the sample contract.
- You need the coverage in place at award or before you start, not when you submit the bid.
- Bid documents often ask for a broker letter saying you can get the coverage. That is not the same as buying it.
- Public bids usually ask for more than private ones: higher limits, the agency named on your policy, and often a bond.
- Price the insurance into your bid. Ask your broker for the number the day the package lands.
Where in the bid package are the insurance requirements?
Bid packages are long, and the insurance section hides in one of three places. Check all three, because they can disagree.
- Instructions to bidders. What to turn in with the bid: often a current certificate of insurance (a one page summary of your policies, limits, and dates) or a letter from your broker.
- General conditions. Where the limits and the extra wording live. In a standard architect's contract it is Article 11.
- The sample contract. Often an exhibit near the back. It is what you sign, so it wins if the documents conflict.
What insurance do most bids ask for?
| Policy | What most bids require | Public bids often add |
|---|---|---|
| General liability | $1,000,000 for any one incident and $2,000,000 for the year | $2,000,000 per incident, or a yearly limit that resets for each job |
| Workers comp | Whatever your state requires, plus employers liability (the part that pays if an employee sues you) of $500,000 to $1,000,000, shown as three numbers on the policy. In Texas the state does not require most private employers to carry workers comp, but bids do. | A waiver of subrogation, meaning your insurer agrees not to go after the agency to recover money it paid |
| Commercial auto | $1,000,000, including vehicles you rent or employees drive for work | The agency named on the auto policy too |
| Umbrella | $1,000,000 to $2,000,000 above your other liability policies | $5,000,000 or more on larger projects |
| Extra wording | Owner and general contractor added to your policy (they can use it if they are sued because of your work), including after the job is finished, and your policy paying first. Adding the owner as well can take more than one endorsement: blanket wording often covers only the party you signed with, and some blanket forms leave out the after completion part. Confirm both parties and both time periods before you promise them. | Every agency, board, and officer listed by name |
When do I actually need to have it?
| Stage | What you usually need |
|---|---|
| Bid submission | Your current certificate, or a broker letter saying the required coverage is available to you. Sometimes a bid bond (a promise that you will sign if you win). |
| Award or notice of intent to award | The clock starts. Many contracts give you ten days to deliver a certificate meeting every requirement. |
| Contract signing | A certificate made out to the owner, plus the pages your insurer added to your policy. |
| Before mobilization | Everything accepted. Most owners will not let you on site until it is. |
| During and after the job | Renewal certificates if a policy expires mid job, and wording that lasts for years after you finish. |
For the full picture, read do I need to buy the required insurance before submitting my bid.
Do public bids ask for anything different?
Yes, in three ways. Limits run higher, the list of names to add is longer (often the city, the school board, and their officers), and bonds show up next to insurance. A bid bond is a promise that you will sign the contract if you win, and a performance bond promises you will finish the work. Bonds are not insurance and come from a different company. See does this bid require insurance, a bid bond, or both.
How do I put the insurance cost into my bid?
Ask your broker for a number the day you get the package. If you already carry the four main policies, extra wording is often a small add, while an umbrella or a higher limit is a real line item. Illustrative for a small contractor with clean claims: roughly $600 to $4,500 a year, depending on the limit, your trade, payroll, state, and claims history. More in what meeting these requirements costs.
What if I do not carry something on the list yet?
Do not buy it before you win. Get a quote, so the price is in your bid and you know the coverage exists for your trade. A quote is a price, not a promise: it is subject to the insurer's final underwriting and can change if your payroll, claims, or the job details change between bid and award. A broker letter binds nothing at all. Ask how long the quote holds and what would change it. When you win, ask your broker to bind it.
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: A concrete contractor in Texas with twelve employees bids $480,000 on a city sidewalk package. The general conditions ask for $1,000,000 general liability, $1,000,000 auto, a $2,000,000 umbrella, the city added to his policy during and after the job, and a workers comp waiver.
What went wrong: He read the instructions to bidders and the bid form, but not the general conditions. He priced the job without the umbrella. He won.
What it cost: The umbrella cost roughly $2,800 a year, illustrative for his trade and payroll, straight out of his margin. The start date also slipped five working days while it was placed.
The fix: Read the insurance section at bid time, not award time. Ten minutes with the general conditions would have put the number in the bid.
Frequently asked questions
Q: What insurance will I need if I win this bid?
Whatever the insurance section of the bid package lists, usually general liability, workers comp, commercial auto, and an umbrella, with the owner added to your policies. You need it at award or before you start work, not at bid time.
Q: Do I need to buy the insurance before I submit the bid?
Almost never. Bid packages usually want proof that you can get it, such as a broker letter or your current certificate. You buy or add the coverage after award and before you start work.
Q: What is a broker letter or evidence of insurability?
A short letter from your broker saying what you carry today and that the coverage the bid requires is available to you if you win. It is not a commitment from an insurer.
Q: Who do I ask if the bid documents contradict each other?
The agency or general contractor contact named in the instructions to bidders, in writing, before the question deadline. Whatever the sample contract says usually wins, because that is the document you sign.
Q: What if the bid requires a bond too?
A bid bond promises you will sign if you win, and a performance bond promises you will finish. Both come from a surety company, not your insurer, and both take longer to set up. Start early.
Q: What happens if I win and cannot get the coverage?
Most contracts let the owner pull the award and, if you posted a bid bond, keep part of it. That is why you get quotes before you bid.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Reading a bid package's insurance section before the bid goes in, and putting a real number next to each requirement, is something we do for contractors every week.
- 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.