What Insurance Policies Do Fence Contractors Need?

Fence contractors face a unique mix of exposures, from injuries caused by sharp materials to claims from improperly installed fencing. Whether securing a residential backyard or outlining the perimeter of a commercial site, the right insurance coverage is critical. 

In this article, Thomas McMillan, commercial lines staff underwriter at Central Insurance, breaks down common fence contractor risks and coverages designed to protect your business and bottom line. 

Fence Contractors: Common Risks and Exposures

The risks fence contractors face vary as much as the materials they install. Minor oversights like a missed measurement or an unsecured fence post can result in injury, property damage, or costly legal disputes. 

Below are some of the most common exposures that make comprehensive coverage critical for fence contractors.

Installation Mistakes

Improperly installed fencing can lead to legal action or a complete redo at the contractor’s expense. For example, a fence dealer is contracted to install a custom cedar privacy fence around a residential property. Several months after completion, a large section of the fence collapses. Upon inspection, it was discovered that the fence posts were not set to the proper depth or did not have adequate concrete footing, contrary to industry standards and project specifications. The collapsed fence damages the homeowner’s landscaping and irrigation system. Without contractor’s E&O, the fence dealer may not have coverage for the repair of the fence itself due to the exclusion in the CG0001. With contractor’s E&O, fence repair could be covered by the fence dealer’s insurer.

“Something as simple as misreading a property line can become a big financial hit,” McMillan says. “Especially if it requires tearing out and replacing the fence.” Mistakes like using the wrong materials or failing to secure posts properly are not uncommon, and they can quickly become costly. 

Third-Party Injury

Exposed nails, sharp metal edges, and unsecured fence sections can pose serious injury risks to homeowners, children, pets, and neighbors. “If a section of fence is left unsecured overnight and injures someone walking past, it could result in a general liability claim,” McMillan cautions.

Premises Liability On-Site

Fencing jobs often occur on private property near pedestrian areas, meaning contractors have a heightened liability risk. Open holes, unflagged trenches, or unsecured tools and materials can harm workers and anyone on-site.

Transport & Auto Exposure

Fencing materials are bulky, and improperly secured loads can cause real damage. “I’ve seen claims where ladders or fence posts weren’t tied down correctly and caused an accident,” McMillan says. “Even if no one’s hurt, the financial impact can be significant.” The right commercial auto coverage is critical because fence contractors often travel between multiple sites daily.

Equipment Theft or Vandalism

Tools left on a jobsite overnight—especially high-value equipment like post drivers or augers—are common targets for theft. Replacing stolen tools delays jobs, impacting a fencing contractor’s bottom line.

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Core Insurance Coverages for Fence Contractors

The right coverage can help fence contractors avoid costly setbacks, from on-site injuries to installation mistakes. Below, McMillan breaks down some of the policies fence contractors should consider to fully protect their business. 

1. General Liability

General liability coverage is the foundation of any contractor’s policy, protecting against third-party bodily injury or property damage claims. According to McMillan, “If a fence isn’t properly secured and causes bodily injury to a homeowner or passerby, that could  trigger a general liability exposure.”

2. Business Auto Policy

“Auto liability is a key concern for contractors of all types, especially those frequently on the move,” McMillan says. From hauling materials to hopping between sites, fence contractors rely heavily on their vehicles. A business auto policy helps cover costs from company-owned vehicle accidents and can help ensure you’re protected if your load causes damage in transit.

3. Inland Marine

Tools are critical to any fencing business. Inland marine insurance helps cover portable equipment and tools against theft and vandalism, whether stored in a trailer or used on a jobsite.

4. Errors & Omissions

While general liability protects against physical damage or injury, E&O coverage can sometimes fill the gap when mistakes result in financial loss. “Normally, something like installing a fence outside the correct property boundary would be excluded under general liability,” McMillan explains. “But with a contractor’s E&O endorsement, the cost to remove and reinstall that fence properly may be covered.”

5. Workers’ Compensation

Fence installation is physically demanding work involving heavy materials, power tools, and exposure to the elements. Workers’ Compensation can help cover medical expenses and lost wages when employee injuries occur.

6. Completed Operations Exposure

Even a perfectly installed fence can become a liability weeks or months after the job is done. “A fence may look fine at install, but if it fails later and causes consequential damage, that’s a completed operations exposure and the consequential damage would likely be covered,” McMillan says. The right coverage ensures your business is protected even after a job wraps.

The Central Difference

At Central, we understand that fence contractors face more than just jobsite risks. We go beyond one-size-fits-all coverage to build insurance strategies that reflect the unique challenges of your work, from completed operations exposures to equipment theft and everything in between.

Our underwriters specialize in construction risks and take the time to understand the nuances of your operation so we can match you with the best coverage for your business exposures. Our dedicated loss control experts also work with you to proactively spot potential issues early, protecting your team, clients, and livelihood by preventing setbacks and costly claims. 

We’re proud to be a trusted partner in protecting the business and the reputation you’ve worked hard to build. Find an agent to learn more about how Central can help you make the best insurance strategy for your fencing business.