If you’re a contractor and you’re considering purchasing contractor business insurance, you might be wondering how much it will cost you. Fortunately, there are several different types of policies available and you can customize them to meet your individual needs. After you select the policy and pay the deductible, the business insurance company will cover any damages or expenses associated with the claims.
Cost of contractor business insurance
When it comes to the cost of contractor business insurance, the amount you will have to pay depends on a number of factors. General liability insurance, for example, will cover your costs if you cause harm to a client, damage their property, or make an advertising mistake. For this type of insurance, you should budget around $1,090 per year for your premium.
Contractor business insurance is important for any contractor. It protects your business against unforeseen claims arising from damage, faulty work, not completing a project on time, and going over budget. In addition, you can use the insurance to protect your employees. Ultimately, contractor business insurance protects your assets and provides peace of mind.
General liability insurance, for example, can be inexpensive. It costs less than $77 per month, which is less than half of what a construction company pays for other forms of insurance. General contractors may also choose to pay $8 per month for surety bonds, which reimburse clients in case they break a contract.
Types of coverage available
When it comes to contractor business insurance, there are several types of coverage you can purchase. The first, bare essentials, covers the most basic risks. These types of policies are appropriate for small contractors who don’t need extensive insurance coverage or to have substantial assets. These policies include liability insurance, which protects you from liability claims brought against you by third parties while conducting business.
Another type of coverage is umbrella liability, which provides coverage for catastrophic events. Umbrella liability covers the contractor for any non-covered claims and is more affordable than purchasing separate policies. Some contractors may need this type of coverage, especially if they work in high-risk industries. Regardless of the type of coverage you need, contact your State Farm agent to learn more about what additional coverages are available for your business.
While general liability insurance is usually the first type of insurance for contractors, it is far from the most comprehensive form of protection. While a standard CGL policy protects contractors from general liability claims, it leaves significant gaps in coverage.
Which company is best for contractors?
As a contractor, you need to understand your options in terms of contractor insurance. There are many variables to consider. Ideally, the insurance company you choose should have experience in your industry. For example, an insurance company that covers shipyards may not have the right coverage for a lawyer. There are some ways to compare contractor business insurance quotes.
Some companies offer customizable policies. This means that you can tailor your policy to your specific risks. For instance, if you are an upscale home builder or renovator, you can choose a policy that includes an expanded excess liability limit. If you’re in a high-crime neighborhood, you can opt for a policy with a higher deductible.
A contractor’s insurance policy should also cover the cost of medical care for clients and property damage. This type of insurance is especially important for construction businesses as the clients rely on contractors for a quality outcome. Having the proper insurance can ensure that a client doesn’t blame you when something goes wrong.