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insurance for contractors
tailored coverage for:
- Property
- General Liability
- Tools/Equipment
- Installation Floater for building materials at the jobsite.
- Workers Compensation (Pay-As-You-Go Available!)
- Contractor’s Errors and Omissions (Professional Liability)
- Commercial Auto
- Excess Liability
- Cyber Liability
- Bonds
- Environmental Pollution Liability
- Builder’s Risk
You can qualify for this program even if your operation offers:
- Carpentry
- Roofing and Siding
- Electrical
- HVAC
- Plumbing
- Excavation
- Paint
- Drywall and Installation
- Flooring
- Glasswork
- Masonry, Stone and Tile
- Garage Door Installation/Servicing
- Janitorial
- Landscape
- And More…
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building a strong foundation
As a contractor, you face unique risks and exposures to potential losses. That’s why we’ve partnered with top insurers to develop specialized insurance solutions designed specifically for contractors like you.
We prioritize the protection of your assets, projects, and reputation. Our competitive pricing ensures that you receive the coverage you require without straining your budget. Contact us today to discuss your insurance needs and let us guide you towards the right coverage options for your contractor business.
This Contractor's insurance guide will help you:
- Learn about what coverages should be considered for your construction business.
- Understand how insurance companies determine coverage specifically for Commercial Contractors.
- Note typical exclusions to watch out for.
Determining the appropriate amount of coverage for commercial contractors can depend on various factors specific to your business. Here are some considerations to help you determine how much coverage you may need:
Legal Requirements: Start by understanding any legal requirements or regulations in your industry or location regarding minimum insurance coverage. Certain types of coverage, such as workers’ compensation or commercial auto insurance, may be legally mandated.
Contractual Obligations: Review your contracts with clients, vendors, or subcontractors. They may specify minimum insurance requirements or indemnification provisions that you must comply with. Ensure your coverage aligns with these contractual obligations.
Risk Exposure: Evaluate the nature of your work and associated risks. Consider the potential financial impact of accidents, property damage, or lawsuits that could arise from your operations. Assess the types and level of risk you face in your industry to determine appropriate coverage limits.
Asset Value: Take into account the value of your assets, including property, equipment, tools, and inventory. Sufficient coverage should be in place to protect these assets in case of damage, loss, or theft.
Project Requirements: If your coverage needs vary based on specific projects, consider tailoring your insurance coverage to accommodate different project scopes, sizes, and associated risks.
Professional Advice: Consult with an insurance agent or broker who specializes in contractor insurance. They can provide insights based on industry expertise and help you assess your risk exposure accurately. They will consider factors such as your business size, revenue, and specific operations to recommend appropriate coverage amounts.
Remember that under-insurance can leave you vulnerable to financial loss, while over-insurance can lead to unnecessary costs. Striking the right balance is crucial. Regularly reassess your coverage needs as your business grows or evolves, and ensure your coverage aligns with your risk profile and legal requirements.
When purchasing insurance for your commercial contracting business, it’s essential to be aware of potential exclusions that may limit or exclude coverage for certain situations or risks. While specific exclusions can vary depending on the insurance policy and provider, here are some common exclusions to be mindful of:
Intentional Acts: Insurance policies typically exclude coverage for intentional acts or deliberate damage caused by the insured. This means that if you intentionally cause harm or damage, the insurance policy may not cover the associated costs.
Professional Errors or Omissions: General liability insurance policies may exclude coverage for professional errors or omissions, which are typically covered under professional liability insurance (also known as errors and omissions insurance). If your business provides professional services or advice, such as architectural design or engineering, you may need separate coverage for these risks.
Pollution or Environmental Damage: Standard general liability policies often exclude coverage for pollution or environmental damage. If your work involves handling hazardous substances, such as asbestos removal or waste disposal, you may need to consider specific pollution liability coverage.
Employee Injuries: While workers’ compensation insurance covers employee injuries and illnesses, it’s essential to understand any specific exclusions or limitations within the policy. Certain activities or injuries that occur outside of work-related duties may not be covered.
Certain Property Damage: Property insurance policies may exclude coverage for specific perils or events such as earthquakes, floods, or acts of war. It’s crucial to review the policy to understand what perils are covered and whether additional coverage is necessary for any excluded risks.
Contractual Liability: Some general liability policies may exclude coverage for liability assumed under contracts or agreements. If you enter into contracts that require you to assume liability for certain damages, you may need additional coverage or endorsements to address this contractual liability.
Wear and Tear or Maintenance Issues: Insurance policies typically exclude coverage for normal wear and tear, maintenance-related issues, or gradual deterioration of property or equipment. It’s important to understand that insurance is generally designed to cover sudden and accidental events rather than routine maintenance or expected wear and tear.
It’s crucial to carefully review the insurance policy and discuss exclusions with your insurance agent or broker. They can help you understand the specific exclusions and recommend any additional coverage options or endorsements that may be necessary to address your unique risks and ensure adequate protection for your business.
When it comes to determining insurance premiums for commercial contractors, several factors are taken into consideration. These factors help insurance companies assess the level of risk associated with providing coverage to contractors. Here are some key elements that influence the calculation of premiums:
Type of Work: The nature of the work performed by commercial contractors plays a significant role in determining premiums. Insurance companies consider the level of risk associated with different types of projects, such as construction of buildings, installation of electrical systems, plumbing work, or roofing.
Business Size: The size of a contractor’s business can affect the premium calculation. Variables such as annual revenue, payroll expenses, and the number of employees or subcontractors are taken into account. Larger businesses typically have higher premiums due to increased exposure to potential claims.
Coverage Limits: The limits of coverage desired by the contractor also impact premiums. Higher coverage limits mean a greater potential payout for the insurance company in the event of a claim, which often results in higher premiums.
Past Claims History: The claims history of a contractor is a crucial factor. Contractors with a history of frequent claims or high-value claims may be considered higher risk and, therefore, may face higher premiums. On the other hand, contractors with a clean claims history may benefit from lower premiums.
Safety Measures: Insurance companies often evaluate a contractor’s commitment to safety practices and risk management. Contractors who have established safety protocols, regular training programs, and a good safety record may be eligible for discounts on their premiums.
Location: The geographical location where the contractor operates can impact premiums. Areas prone to natural disasters, extreme weather conditions, or higher crime rates may lead to higher insurance costs.
Insurance Coverage Types: The specific types of insurance coverage required by a contractor also influence premiums. Common types of coverage for commercial contractors include general liability insurance, workers’ compensation insurance, commercial auto insurance, and professional liability insurance. The premium for each coverage type is determined based on its associated risks.
It’s important to note that each insurance company may have its own formula and criteria for calculating premiums. Therefore, it’s advisable for commercial contractors to work with an insurance agent or broker who specializes in contractor insurance to obtain accurate premium quotes tailored to their specific needs.
While it’s challenging to provide an exact cost without specific details about your business, here are some general “rule of thumb” considerations that can help you get a rough estimate of insurance costs for your commercial contracting business:
General Liability Insurance: As a starting point, general liability insurance typically costs around 0.5% to 2% of your annual revenue. For example, if your annual revenue is $500,000, you might expect to pay between $2,500 and $10,000 per year for general liability coverage.
Workers’ Compensation Insurance: The cost of workers’ compensation insurance can vary significantly based on factors such as the number of employees, job classifications, and past claims history. As a rough guideline, the average cost is around 1% to 5% of payroll expenses. For example, if your annual payroll is $100,000, you might estimate the workers’ compensation insurance cost to be between $1,000 and $5,000 per year.
Commercial Auto Insurance: The cost of commercial auto insurance depends on factors such as the number of vehicles, usage, driver records, and vehicle value. On average, you might expect to pay between $1,000 and $3,000 per vehicle annually, but this can vary significantly based on your specific circumstances.
Please note that these figures are rough estimates and can vary based on industry, location, risk profile, and other individual factors. It’s always recommended to consult with an insurance agent or broker who specializes in contractor insurance. They can provide you with more accurate quotes tailored to your specific business needs.
