Vermont Contractor Insurance Requirements
Vermont requires workers' compensation for all employers with one or more employees under the Vermont Workers' Compensation Act. Vermont's Office of Professional Regulation licenses contractors. Vermont's small but premium property market — including Stowe, Woodstock, and Burlington commercial districts — drives demand for comprehensive COI requirements. Vermont also has unique requirements for contractors working on state highway projects.
Vermont COI Requirements at a Glance
The following table summarizes the minimum insurance requirements for contractors operating in Vermont. Commercial property managers often require limits above state minimums.
| Coverage Type | Minimum / Status |
|---|---|
| General Liability (per occurrence) | $300,000 |
| General Liability (aggregate) | $600,000 |
| Workers' Compensation | Mandatory 1+ employees |
| Umbrella / Excess Liability | Commonly Required on Large Projects Common minimum: $1,000,000 |
| Additional Insured Endorsement | Commonly Required |
| Waiver of Subrogation | Less Common |
Coverage Notes
GL: Vermont contractor licensing requires $300K per occurrence minimum. Burlington and Stowe commercial projects typically require $1M/$2M.
WC: 21 V.S.A. § 686 requires WC for all employers with 1+ employees. Sole proprietors and partners may elect to be included.
Umbrella: Required on state agency and VTrans highway contracts.
Additional Insured: Standard on commercial property management contracts.
Waiver of Subrogation: Less common in Vermont; included in most commercial contracts.
Vermont-Specific Laws & Regulations
These laws directly affect how contractor insurance requirements are structured in Vermont. Property managers should be familiar with these statutes when reviewing vendor COIs.
Vermont Workers' Compensation Act (21 V.S.A. § 686)
Mandatory WC for all employers with 1+ employees. The Department of Labor administers the program.
Vermont COI Frequently Asked Questions
Common questions from property managers and contractors about insurance requirements in Vermont.
Do contractors in Vermont need workers' compensation?
Yes. 21 V.S.A. § 686 requires workers' compensation for all employers with one or more employees in Vermont. Sole proprietors may elect to be covered voluntarily.
What are the insurance requirements for Vermont contractors?
Vermont contractor licensing requires at least $300,000 per occurrence GL. Burlington and resort area commercial property managers typically require $1M/$2M GL with workers' compensation and additional insured endorsements.
What COI requirements apply to Vermont ski resort contractors?
Vermont ski resort contractors often need specialized liability coverages including ski area liability and higher umbrella limits. State-licensed ski areas may have specific vendor insurance requirements. Always request specialty coverages when hiring for ski resort or mountain properties.
What should I require on a Vermont contractor COI for commercial work?
Request $1M/$2M GL, workers' compensation, and additional insured endorsements for commercial work. Verify the Vermont contractor license status and ensure all policy expiration dates extend beyond the contract period.
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