On This Page
- Contractors' General Liability Insurance Average Costs
- How General Liability Insurance Works
- Use Our Free Service and Find General Liability Companies
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No matter how careful you are, accidents happen. Plan for the unexpected by protecting yourself with a general liability insurance policy. For a relatively small annual premium, general liability insurance protects your assets if you are sued for personal injury or property damage. A general liability policy covers the cost of damages or settlement fees as well as attorney fees.
General liability insurance is particularly important for contractors. Any company that works with heavy or dangerous equipment has a greater risk of injury. And even small mistakes can turn into costly lawsuits.
Contractors' General Liability Insurance Average Costs #
Contractors pay more for general liability insurance than many other types of businesses due to the risky nature of the work. (Faulty plumbing or electrical work could lead to damages or a child could wander onto the construction site and be injured). However, general liability insurance is still affordable.
Most contractors pay from $700 to $1,200 per year for general liability insurance. The payments are usually structured as a down payment of several hundred dollars and monthly payments spread out over nine or ten months.
Several factors will influence your rate. The size of the policy is one of the biggest factors - the most common policies offer $500,000, $1 million or $2 million worth of coverage. The more coverage you need, the more expensive the premium will be. Rates also vary from state to state, because courts in some states are known for awarding higher damages in personal injury and property damages cases. An insurance company will also look at your company's track record in determining a rate. If you've had accidents or faced lawsuits in the past, expect to pay more.
How General Liability Insurance Works #
General liability insurance is not a luxury for construction firms, plumbers, electricians and the like. Many times, contractors are required to show proof of insurance before beginning work on a job site. Some customers will ask to see proof before allowing you to work on their home.
If you're sued, general liability insurance will cover the cost of your damages or settlement fees and attorney fees up to the policy maximum. So, if you buy a $1 million policy and the settlement is $1.5 million, you'll be on the hook for the remaining $500,000. If you're concerned about that happening, you might want to purchase a separate umbrella policy to cover the remainder.
Use Our Free Service and Find General Liability Companies #
General Liability Insurance for Contractors and Construction
We know that contractors face unique risks. Whether you’re meeting with clients in a store or working on a client’s home, general liability insurance for contractors can help you.
What Does General Liability Insurance Cover for Contractors?
- Bodily injury
- Property damage
- Personal injury, like libel or slander
Different types of general liability claims can come up during normal operations. Even if you try to run your contracting business perfectly, mistakes can happen.
Who Needs Construction Insurance?
A general liability insurance policy can help protect different types of construction businesses. Our general liability insurance helps cover:
- Contractors
- Carpenters
- Plumbers
- Handymen
- Electrical contractors
- Masons
- Security companies
- Homebuilders
- Developers
- Home renovation
- Independent contractors
General Liability Insurance Cost for Contractors
General liability insurance costs vary. That’s because every business is unique. Insurance companies look at different factors when determining general liability insurance costs. This can include:
- The type of business you own. Contracting businesses may face more risk compared to other businesses. So, your rate may be higher.
- Experience can affect your general liability insurance cost depending on how long you’ve been in operation.
- Number of employees because the more workers you have, the higher the risk level.
- Location because areas with higher crime rates can cause your costs to increase.
- Policy details, like coverage limits and deductibles. More coverage and a lower deductible can increase rates.
- Claims history since clean histories can result in lower costs.
Why Contractors Want Good General Liability Insurance
Mistakes and the unexpected can happen at any time. That’s why it’s important to partner with an insurance company you can trust. We have over 200 years of experience and have insured many construction businesses and projects, like the Hoover Dam and Golden Gate Bridge. Whether you have questions on coverage or need help with a claim, we’ve got your back.
Additional Liability Insurance Coverage for Contractors
A general liability insurance policy is just one part of contractor insurance. You’ll likely want to consider getting other types of small business insurance to have well-rounded coverage. Some types of coverage you can get include:
Commercial property insurance to help protect the owned or rented building and equipment you use to operate. This includes your:
- Computers
- Tablets
- Tools
- Power equipment
- Heavy equipment
Business income insurance to help cover lost income if you can’t operate because of covered property damage.
Data breach insurance to help you respond to a breach if personally identifiable information gets lost or stolen. Some insurers call this coverage cyber insurance.
Workers’ compensation insurance helps your employees if they have a work-related injury or illness. Also known as workers’ comp, this coverage can help pay for an employee’s medical expenses. It gives them benefits to help recover and return to work.
Get General Liability Insurance for Construction
Have questions about general liability insurance for construction businesses? We're here to help. Our specialists can tell you about the types of business insurance coverage that we offer. If you have questions about getting a certificate of insurance, adding an additional insured or need help with a claim, we’ve got your back. Get a general liability insurance quote today.