Contractor Insurance
Contractor insurance, sometimes referred to as contractor liability coverage, is a type of business insurance that helps protect contractors from financial losses arising from accidents, injuries, and property damage. Contractor insurance should be considered by contractors as there are inherent risks in their operations that these coverages can help protect against.
Why Contractor Insurance?
Contractor insurance helps protect the business owner in the event the business faces a lawsuit or a loss that is covered. Some of the reasons to consider contractor insurance include:
- It can protect you from financial losses arising from accidents, injuries, and property damage.
- It can help to protect your business’s reputation.
- It can make it easier to obtain financing and insurance for your business.
- It can give you peace of mind knowing that you are protected in case of an accident or injury.
Who Needs Contractor Insurance?
Contractors of all types should consider contractor insurance for their business. Examples include:
- General Contractors
- Construction Contractors
- HVAC Contractors
- Carpenters
- Electricians
- Plumbers
- Landscapers
Types of Contractor Insurance
There are a number of different types of contractor insurance available. Some of the most common types of coverage include:
- General liability insurance: This coverage helps protect against financial losses arising from bodily injury, property damage, and advertising injury.
- Business owner’s policy: This coverage combines business property and general liability insurance.
- Workers’ compensation insurance: This coverage helps cover the cost of medical expenses and lost wages for employees who are injured on the job.
- Commercial auto insurance: This coverage helps cover the cost of damage to vehicles and property, as well as the cost of bodily injury and property damage claims.
- Contractors tools & equipment coverage: This coverage helps cover the cost of lost, stolen, or damaged tools and equipment.
- Professional liability insurance: This coverage helps cover the cost of lawsuits from clients who sue over a mistake, missed deadline, or breach of contract.
How to Choose Contractor Insurance
The best way to choose contractor insurance is to speak with an insurance provider. The insurance provider can help you find and choose the right policy for your contractor business and ensure you are covered appropriately.
When choosing contractor insurance, it is important to consider the following factors:
- The type of coverage that you need: Make sure that you choose a policy that covers the types of losses that you are most concerned about.
- The cost of the policy: Contractor insurance can be expensive, so it is important to find a policy that fits your budget.
- The reputation of the insurance company: You want to make sure that you are working with a reputable insurance company that will be there to help you if you need to file a claim.
How Much Does Contractor Insurance Cost?
According to Insureon, a recognized online insurance agency serving small business owners, the median monthly cost of policies sourced to contractor businesses include[1]:
- General liability insurance: $80 per month
- Business owner’s policy (BOP): $98 per month
- Workers’ compensation: $254 per month
- Commercial auto insurance: $173 per month
- Contractor’s tools and equipment: $14 per month
- Professional liability insurance: $74 per month
- Builder’s risk insurance: $105 per month
- Surety bonds: $8 per month
Get a Quote for Your Contractor Business
If you are a contractor, it is important to consider purchasing contractor insurance. This coverage can help to protect your contractor business from costly lawsuits and other financial problems. Get a quote from one of our favorite providers for contractor insurance today.
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