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Fencing Contractors Insurance Requirements

What property managers need to verify before hiring

Risk Level: medium
Typical GL: $1,000,000/$2,000,000

Fencing contractors provide perimeter security, property delineation, and access control for commercial and residential properties. While fencing installation is generally a moderate-risk trade, the excavation required for post setting creates a significant risk of underground utility strikes — hitting a gas line, water main, or buried electrical conduit can cause serious injury, property damage, and service disruption. Property managers must verify proper insurance coverage and ensure contractors call 811 (Underground Utility Locate) before any excavation. For standard fencing work, $1M/$2M GL coverage is appropriate. Verify that the policy covers underground utility strikes, as some policies exclude or sublimit this exposure. If the fencing project includes security fencing with integrated access control (card readers, keypads, electric gates), the contractor should carry the same professional liability as a security system installer for the electronic components. Fencing contractors should carry commercial auto coverage for trucks and trailers hauling materials and equipment. For large perimeter projects, verify that the contractor has adequate equipment coverage for post drivers, augers, and other specialized equipment operating on your property.

Recommended Insurance for Fencing Contractors

Coverage TypeRecommended Minimum
Commercial General Liability
$1,000,000 / $2,000,000
Workers' Compensation
Statutory limits
Commercial Auto
$1,000,000 combined single limit
Inland Marine / Equipment
$50,000

Common Risks

Underground utility strikes during post hole excavation (gas, electric, water, communications)
Property line disputes resulting in fence installation on neighboring property
Vehicle or pedestrian injury from improperly secured gates or fencing
Worker injuries from post drivers, augers, and heavy material handling
Damage to existing landscaping, irrigation, or hardscape during installation
Security failures from improperly installed or designed access control systems

Workers Compensation

NCCI class code 6400 is the primary fencing code with rates typically from $5.00 to $10.00 per $100 of payroll. Ornamental iron fencing may fall under steel erection codes with higher rates. Rates reflect the physical nature of the work and equipment hazards.

NCCI CodeDescription
6400Fence Erection — All Types
6319Gas Main or Service Line Construction
5102Iron or Steel Erection — Ornamental Fencing

Additional Insured Requirements

Require additional insured status on the fencing contractor's GL policy for the property owner and management company. For projects near property lines, consider requiring the contractor to carry coverage for claims from adjacent property owners. Waiver of subrogation on GL and WC is standard. Verify that the contractor has called 811 and obtained utility locates before any excavation begins.

Fencing Contractors Requirements by State

Insurance requirements vary by state. Select a state to see specific minimums, licensing requirements, and compliance notes for fencing contractors in that state.

AL - AlabamaAK - AlaskaAZ - ArizonaAR - ArkansasCA - CaliforniaCO - ColoradoCT - ConnecticutDE - DelawareFL - FloridaGA - GeorgiaHI - HawaiiID - IdahoIL - IllinoisIN - IndianaIA - IowaKS - KansasKY - KentuckyLA - LouisianaME - MaineMD - MarylandMA - MassachusettsMI - MichiganMN - MinnesotaMS - MississippiMO - MissouriMT - MontanaNE - NebraskaNV - NevadaNH - New HampshireNJ - New JerseyNM - New MexicoNY - New YorkNC - North CarolinaND - North DakotaOH - OhioOK - OklahomaOR - OregonPA - PennsylvaniaRI - Rhode IslandSC - South CarolinaSD - South DakotaTN - TennesseeTX - TexasUT - UtahVT - VermontVA - VirginiaWA - WashingtonWV - West VirginiaWI - WisconsinWY - Wyoming

Related Trades

LandscapingSecurity AlarmWeldingConcrete Masonry

Frequently Asked Questions

How do I protect against underground utility strikes during fence installation?▼
Require the fencing contractor to call 811 (national dig hotline) at least 48–72 hours before any excavation and obtain utility locates for all underground services. Include this requirement in the contract and verify compliance before work begins. Even with locates, require the contractor's GL policy to cover underground utility damage — some policies exclude this exposure.
What insurance do I need for security fencing with electronic access control?▼
Security fencing with integrated access control (card readers, keypads, electric gate operators) combines standard fencing risks with electronic security system risks. Require standard GL for the physical installation plus professional liability for the electronic components. If the access control system will be monitored, apply the same insurance requirements as a security alarm contractor.
Who is responsible if a fence is installed on the wrong property line?▼
The property manager should provide a current property survey to the fencing contractor before work begins. If the contractor installs a fence on the wrong property line despite having a current survey, their GL policy should cover the cost of removal and reinstallation. However, if no survey was provided and the fence encroaches on neighboring property, liability may fall on the property owner. Always obtain a survey before fence installation.
What are the insurance implications of electric or automated gates?▼
Automated gates create additional liability for entrapment and crush injuries to pedestrians and vehicles. The fencing contractor's GL should cover gate-related injuries during and after installation. UL 325 compliance is required for automated gates and includes safety sensors, auto-reverse mechanisms, and warning signage. Verify that the gate operator meets UL 325 standards and that the contractor's completed operations coverage extends to gate-related claims.

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