Vendor Insurance Requirements by Property Type

Why requirements should vary by property

The risk a vendor introduces depends heavily on where they are working. A roofer on a 30-story commercial tower presents far greater exposure than a handyman at a single-family rental. Applying a flat insurance requirement across an entire portfolio either over-burdens low-risk vendors or, worse, under-protects your highest-value assets.

The fix is a tiered requirement model: baseline coverage by vendor type, escalated by property type and risk profile.

A practical tiering framework

These are illustrative ranges, not legal advice—your actual requirements should follow your owners' insurance counsel and lender or master-policy obligations.

• Single-family / small residential: general liability commonly $1M per occurrence / $2M aggregate; workers' comp where the vendor has employees.
• Mid-size multifamily: often $1M–$2M general liability, plus auto liability for vendors operating vehicles on site.
• Commercial / mixed-use: frequently $2M+ general liability, higher aggregates, and auto coverage.
• High-rise / high-value assets: commonly layered with umbrella/excess liability of $5M or more on top of the primary policy.

Layer requirements by vendor type on top

Property type sets the floor; vendor type adjusts it. Licensed trades and higher-hazard work (roofing, electrical, tree removal, pool service) warrant stricter coverage, licensing, and workers' comp, while low-risk services may need less. The cleanest model is a three-layer system: a vendor-type default, a property-level override, and a per-vendor exception where justified.

Do not forget the endorsements

Coverage limits are only half the requirement. For most property types you will also want your entity named as additional insured on a primary and non-contributory basis, plus a waiver of subrogation. These do not change with the dollar amount but they do change whether the coverage actually protects you.

How VendorSuite enforces tiered requirements

VendorSuite's requirement engine is built for exactly this. You define coverage minimums and required documents once per vendor type, override them per property, and add per-vendor exceptions where needed. Every certificate is then scored against the specific requirements for the properties that vendor actually serves—so a vendor can be compliant at your duplex and non-compliant at your high-rise, correctly and automatically.