The coverage types you choose depend on the contractor business’ specific needs.Ī good place to start is with a business owners policy (BOP). Those issues can include the cost of claims, lawsuits and damages to your business property. Here are examples of contractors that would need contractor insurance:Ī good contractor insurance policy contains several types of small business insurance that cover your business from a variety of problems. No matter if your business does general contractor or subcontractor work, you need contractor insurance to protect your business from work-related accidents. Generally, a subcontractor reports to the contractor, not the client. For example, a contractor hires an electrician to install wiring in the new addition. A worker or company hired by the contractor to perform specific tasks or services for a project. For example, completion of an addition to a home. Sometimes referred to as a general contractor, they are responsible for overseeing the completion of the project and fulfilling the contract. A contractor can be broken down into two types: For example, a homeowner hires you to build an addition to their home. If you choose a higher deductible, your insurer will pay less if you file a claim, which means cheaper premiums.Ī contractor is hired by a client to complete a project. The insurance deductible is the amount that gets deducted from an insurance check if you make a claim. Increase your commercial car insurance deductible.You may qualify for a discount if you pay your premium in full rather than monthly. If you join a trade association with at least 300 members with several that share the same risks as your business, you may save on your workers compensation insurance by getting a group rate. If you’re not sure how to classify your employees, you can speak with your insurance agent. This can help you save on workers compensation insurance. It’s a good idea to have accurate and detailed job descriptions for your employees and make sure they do not perform duties outside of their classification. Classify your workers correctly for workers comp.You may qualify for savings if you implement and document a safety program. It’s cheaper to buy them as a bundle rather than separate insurance policies. A business owners policy (BOP) bundles three important coverage types: general liability insurance, business interruption insurance and commercial property insurance. You can take advantage by comparing business insurance quotes from multiple insurers to find the best price. Not all insurers price their business insurance policies the same. Here are some ways to find cheap business insurance: Your costs will vary depending on what type of coverage you buy and other pricing factors.Ĭontractor’s tools and equipment insurance Here’s an example of how much a contractors insurance might cost. Your insurer likely looks at other cost factors, like your business assets, the business property owned, your business location and the size of your payroll to estimate costs.Įxample of the cost of contractors insurance Your insurer reviews your prior business claims history when determining your costs. The more employees you have, the more you pay for workers compensation insurance. Generally, higher coverage amounts means higher insurance premiums. The types of coverage you choose, along with your policy limits, will be a factor in your insurance costs. There are several cost factors that will determine your contractors insurance costs, such as: How Much Does Contractors Insurance Cost? A good contractors insurance policy contains several types of coverage that protect your business from problems such as accidents, lost income, lawsuits, and stolen, lost or damaged tools.įor example, if you accidentally damage someone’s home while doing a job, the general liability portion of your contractors insurance can pay for repairs. Compare quotes from participating carriers via What Is Contractors Insurance?Ĭontractors insurance is a small business insurance policy that is custom-built to address the specific risks that come with the job.
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