How much contractor insurance

Also, the contractor risks the insurance company canceling the policy and denying coverage of a claim if the contractor fails to pay additional premium when required. Contractors may also be required by the owner of a project to provide a bid, performance and payment bond , often referred to as Contract Surety Bonds, on a job by job basis. Call Us Rates do not constitute an offer of coverage and are subject to change at any time. Rates may fall outside average ranges shown here due to exceptional risk factors.

Why does a contractor need General Liability insurance? What does a contractor General Liability policy cover? Below are descriptions of the coverages: Bodily Injury - Injury, sickness or disease sustained by a person, including death. Property Damage - Physical injury to tangible property, including all resulting loss of use of that property. Product and Completed Operations - Coverage is provided for Bodily Injury and Property Damage after a project is completed, but only covers work performed during the policy period.

Medical Payments - Medical expenses are covered for bodily injury caused by an accident during the policy period. Not common with contractor general liability claims. How do claims work for contractor General Liability insurance? What is a premium audit and what occurs during it? What other types of coverages are required of contractors in California?

Get Started. Survey of the Month. How long have you been a contractor? The more equipment you have, and the more its worth, the more you will pay. This bundled deal combines general liability with commercial property insurance, which protects your tools, equipment, inventory, and so forth. Contractor package policies provide added coverage, and at a lower price than purchasing each insurance policy separately. A popular endorsement is inland marine coverage, which is what protects your tools and equipment in transit or at a job site.

Commercial insurance only protects your things within a foot radius of your business premises. This coverage protects your items on the go and while at other locations. The cost of inland marine insurance depends on the value of the items you would like to insure.

How much is professional liability for independent contractors? Like most insurance policies, your liability insurance rates depend on the level of risk associated with your work. Professions with a lower level of risk include marketing consultants or business consultants. Another aspect that determines cost is how many claims other independent contractors in your industry have filed.

If many people in your line of work have filed incidents, insurance providers sometimes raise prices for the industry as a whole. However, if few claims have been filed, the price will be lower due to good claims performance. Other elements that affects price includes where you operate your business. Insurance rates and requirements vary by state, so keep that in mind.

Additionally, the level of limits you place on your policy dictates the price. The higher your limits, the higher the price of the policy.

Many independent contractors accept forms of payment by cash or check. 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 general contractor insurance cost and determining the particular needs of your company and your service sector, you can feel secure that your policy covers you from all potential risks and that your business is safe.

The exact premium amount will depend on the services offered, business equipment and property, revenue, location, vehicles operated, claims history, and coverage needs.

Get free estimates Powered by CoverWallet. Contact us. Indoor Outdoor Professional Services. 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? Policy price varies considerably based on the following factors: Services offered Coverage needed Business equipment and property Revenue Location Claims history Vehicles operated Number of employees What Is General Contractor Insurance?

Example: A client tripping over a piece of equipment while you are on a job. Medical payments : Medical bills associated with injuries claims. Example: A client requires surgery as a result of an injury that took place on a property you were working on.

Example: Damaging the floor while working on cabinets. Advertising Liability : If a business or third party suffers financial damages as a result of a false advertisement, you can be sued for libel, slander, or defamation. Example: Making a false statement about a competitor in a commercial. Benefits and Risks General contractor insurance offers various benefits to cover risks, including: Protect your assets : Since many general contractors are sole proprietors, their personal assets are tied to the business and can be used to cover liabilities.