Artisan Contractor Policy
A commercial insurance package designed for small specialty trade contractors like electricians, plumbers, and HVAC technicians.
What It Is
An Artisan Contractor Policy is a packaged insurance product designed specifically for small specialty trade contractors — typically those with annual revenue under $500,000 and fewer than 10 employees. The policy bundles general liability, commercial property, and often inland marine (tools and equipment) into a single package with simplified underwriting.
These policies are typically written on ISO or carrier-proprietary forms and may include business auto coverage as an optional add-on. The target market includes electricians, plumbers, HVAC technicians, painters, carpenters, and similar specialty trades that work primarily as subcontractors.
Artisan contractor policies offer competitive rates because the simplified packaging reduces the carrier's underwriting and administrative costs, and the small contractor class generally presents a manageable risk profile.
Why It Matters for Brokers
For brokers, artisan contractor policies represent a high-volume, moderate-premium product line that can form the foundation of a construction book of business. These small contractors often grow into larger accounts that need more complex coverage programs. Brokers must understand the limitations of artisan contractor policies — they typically have lower aggregate limits, restricted endorsement options, and may exclude certain operations (demolition, structural work) that even small contractors sometimes perform.
Real-World Example
A two-person electrical contracting company with $200,000 in annual revenue needs GL, tools coverage, and a commercial auto policy. The broker places an artisan contractor package with $1M/$2M GL limits, $50,000 in tools and equipment coverage, and hired/non-owned auto for $1,800 annual premium. As the company grows to $800,000 in revenue and 6 employees, the broker transitions them to a standard commercial package with higher limits and broader endorsement options.
Common Mistakes
- 1Placing a contractor that performs structural work or demolition on an artisan policy that excludes these operations.
- 2Not reviewing the artisan policy's aggregate limit, which may be inadequate for contractors with multiple ongoing projects.
- 3Failing to transition growing contractors from artisan to standard policies when they outgrow the eligibility criteria.
How brokerageaudit.com Handles This
Policy Checker validates that the contractor's operations fall within the artisan policy's eligible classifications and flags accounts that may have outgrown artisan eligibility based on revenue or employee count.