General contractor insurance is essential for any business and coverage should be applied for before any work begins. There are a lot of accidents that can happen out of your control and you may be liable for damages. the specific coverage your business requires will depend on the structure, work performed, equipment used, and more.
In this guide, we’ll provide information about the cost of general contractor insurance to help you make the best decision about your own policy.
we cover in this guide
- How much does general contractor insurance cost?
- what is general contractor insurance?
- what does general contractor insurance cover?
- benefits and risks
- Who Needs General Contractor Insurance?
- Types of Insurance General Contractors Need
- buying tips
- frequently asked questions
- services offered
- necessary coverage
- commercial equipment and property
- claims history
- vehicles operated
- number of employees
- bodily injury: injury to an employee, customer, or third party in your business or on your customer’s property in the course of service. example: a customer tripping over equipment while you are on a job.
- Medical Payments – Medical bills associated with injury claims. Example: A client requires surgery as a result of an injury that took place on a property she was working on.
- Property Damage: Damage to the property of your client or a third party during the service. example: damaging the floor while working on cabinets.
- advertising liability: If a business or third party suffers financial damage as a result of false advertising, they can be sued for libel, slander, or defamation. Example: Making a false statement about a competitor in a commercial.
- Protect your assets – Since many general contractors are sole proprietors, your personal assets are tied to the business and can be used to cover liabilities. This makes insurance especially important because a lawsuit can not only put you out of business, it can also destroy your own finances.
- cover legal expenses: If a client, employee, or third party files a lawsuit against your business, general contractor insurance will cover expenses, including attorney fees and damages.
- Peace of Mind: Knowing that your business is covered should the unexpected happen gives you and your customers peace of mind. Clients are more likely to hire contractors who are adequately insured.
- handling of heavy equipment in and around a client’s or third party’s property
- work that may be interrupted due to weather
- customers who frequently enter your property
- general liability insurance: essential coverage. protects your business from claims for injuries or accidents, property damage, false or misleading advertising, and pays related costs and expenses.
- business owner’s policy (bop): bop insurance is a package policy that combines essential coverage for most businesses. Commercial general liability and commercial property are the two main insurance companies offer.
- Workers’ Compensation Insurance: Required to operate in many states, workers’ compensation covers your business for medical expenses and lost wages if an employee is injured or becomes ill while working.
- Disability Insurance: This policy replaces income if the insured is unable to work due to illness or injury. there are usually separate plans for short-term (temporary) and long-term (longer than two and a half years).
- Identify your risks – Make sure you thoroughly analyze your services and identify any potential risks. after that, choose all the insurance you need.
- Work with an Independent Agent – An independent agent will help you navigate the complexities of general contractor insurance by assessing your needs and directing you to the best broker for your service.
- compare quotes: Policy costs vary between insurance providers. consider multiple quotes to find the best rates and coverage.
how much does general contractor insurance cost?
The cost of insurance for general contractors averages around $90 per month, or $1,090 per year for $1 million limit policies that provide protection against injury and third party damage. The price of the policy varies considerably depending on the following factors:
what is general contractor insurance?
As a contractor, the tasks required to meet your project deadlines can expose your business and yourself to unique risks. By using potentially dangerous equipment and working in various homes and places of business, your work has the potential to cause injury to others and damage to property. Insurance is essential to cover these risks and can help pay for legal costs and damages. General contractors insurance protects your business, its assets, and your employees in the event of the unexpected that results in significant loss or liability.
what does general contractor insurance cover?
Basic contractor insurance policies typically cover general liabilities, including:
Your specific coverage will depend on the package you choose and its stated limits. review your policy to understand your coverage and add specialized insurance to fill in the gaps.
benefits and risks
General Contractor Insurance offers several benefits to cover risks, including:
who needs general contractor insurance?
While the specific insurance required by contractors will vary by service, all general contractors are at risk of liability for potential injury or damage. general contractor insurance will protect you from such scenarios. the following are some examples:
Types of Insurance General Contractors Need
General contractor insurance offers coverage for the types of services you provide and your individual need.
The cost of general contractor insurance can vary considerably; Before making your decision consider the following:
frequently asked questions
How can I lower my general contractor insurance premiums? Consider bundling insurance. your insurance provider may provide discounted rates by bundling your various coverage needs together.
Do I need commercial auto insurance? All work vehicles involved in your business require commercial auto insurance. Also, personal auto insurance does not cover most business activities of your personal vehicle.
Is general contractor insurance required? Some minimum coverage may be legally required depending on your location. additionally, clients will often require a certificate of insurance before signing a contract.
General contractor insurance protects your business, and even yourself, against potential financial ruin or bankruptcy from lawsuits resulting from your work.
By understanding the cost of general contractor insurance and determining the particular needs of your business and service industry, you can feel confident that your policy covers you from all potential risks and that your business is safe.