General Contractors Insurance
Looking for General Contractor Insurance? As an independent insurance broker Balsiger Insurance can provide you with the proper coverage and insurance protection that suits your needs as a general contractor. We work in many states across the USA, so give us a call to find out what insurance coverage options we can provide your contracting business.
Property and Liability coverages available on a monoline or package basis for commercial and residential general contractors with administrative or managerial responsibility for new construction or remodeling projects and who exercise supervisory control of operations, whether direct or indirect, performed by employees and insured subcontractors in a variety of trades.
General Contractor Insurance What is it & Why do Businesses Need It?
When you run a contracting business, accidents and injuries can happen in the blink of an eye. One second, everything is fine, and the next… Pow! A mishandled nail gun or jigsaw could land you or an employee in the emergency room. A moment of carelessness could have you on the wrong end of a negligence lawsuit. Or a fire could damage your premises and leave your business homeless and short of necessary tools.
The right amount and type of contractor’s insurance coverage protects you against natural disasters, vandalism, lawsuits, and unfortunate moments when your mind wanders and you make a foolish—and expensive—mistake.
Types of insurance for contractors:
- General liability coverage
- Contractor’s insurance for vehicles
- Workers compensation coverage
The sections below offer an overview of these common types of insurance coverage for contractors. The list is not exhaustive, but it offers a good start. To fashion an individual policy that meets your individual needs, speak with Balsiger Insurance. We can advise you about what is available, what you should look for, and how to find an affordable policy that offers the right coverage.
General Liability Insurance for Contractors
A general liability insurance policy protects you against the costs of any lawsuit that arises out of a mistake or accident on your (or your employees’) part during the commission of contracting duties.
A general liability insurance policy is so important that it is often the cornerstone of an organization’s insurance plan. Even a single accident can result in legal fees and consequences that you cannot afford, and which could put you out of business. Moreover, some general contractors will not hire a subcontractor who cannot demonstrate that they have enough general liability insurance coverage to protect the general contractors interests should something go wrong on the job. You might be worried about general liability insurance cost, but general liability insurance is often very reasonable and with the help of an insurance company you can find the best rates.
General liability insurance policies typically protect you against the following:
- Cost of judgments against you
- Court costs, attorneys’ fees, and other legal expenses
- Out-of-court settlement costs
- Costs to defend nuisance lawsuits
- Medical expenses, where applicable
- Injury damages, in claims arising out of accidents on your property or during business operations
- Copyright violations
General liability insurance coverage is very broad, but it does not normally cover the following:
- Employee injuries or illnesses—for these you need worker’s compensation insurance (see below)
- Auto accidents—these are covered under contractor vehicle insurance (see below)
- Punitive damages—it rarely pays for legal damages awarded against you as punishment for negligence or bad behavior
- Intentional acts—does not cover damages arising from intentional acts or expected injuries (e.g. if you intentionally assault a client)
- Warranties for your work (may be available)
- Professional liability insurance (coverage available)
- Pollution liability (coverage available)
Contractor’s Insurance for Vehicles
If you or an employee is involved in an accident while driving commercial autos, such as a commercial truck, van, or automobile, contractor’s vehicle insurance will cover your liability for property damage and bodily injuries if you are found to be at fault. Many states have laws in place that require vehicles driven on the road to have a minimum level of personal liability and property damage coverage. Failure to insure your contractor vehicle properly can result in stiff files.
Depending on your needs, you can buy coverage for specific vehicles, including the following:
- Pick-up trucks and automobiles
- Commercial trucks
- Cargo or delivery vans
- Buses
- Tow trucks
- Flatbed trucks
- Dump trucks
- Car carriers
- Cement trucks
- Gooseneck trailers
- Tilt trailers
- Low-boy trailers
The list above only scratches the surface. If your business requires use of another type of vehicle or tow trailer, consult Balsiger Insurance about tailored coverages for your commercial insurance.
Commercial Property Insurance for Contractors
Commercial property insurance is not technically part of “contractor’s insurance,” but if your contracting company owns or leases an office building, garage, warehouse, or storage facility, you should view such coverage as indispensable.
Contractor Insurance can cover the following things while on site:
- Your building
- Your equipment
- Your furniture
- Your tools
- Your materials inventory
- Your exterior sign
- Fencing and landscaping
- Other people’s property
Should any of the above suffer damage due to fire, windstorm, vandalism, burst pipes, or other named perils, you will not find yourself out of pocket beyond any deductible. Get your business insured today! Call Balsiger Insurance at 1-866-872-0156 to go over professional liability insurance, commercial auto insurance, license bonds, workplace safety, loss control, surety bonds, certificates of insurance, cyber security, and additional insurance coverages.
Inland Marine Insurance for Contractors
Inland marine coverage is what you want to protect your equipment that goes of site. Once a tool or piece of equipment leaves your shop it is no longer covered under any property coverage (any equipment covered under the inland marine does not have to be included in the onsite property coverage).
Inland marine is where you typically cover your tools and mobile equipment. Coverage is normally for the same perils/exposures as are covered under your property policy. Most carriers will want an inventory of all of your equipment.
Workers Compensation Insurance for Contractors
If your business has employees, you almost certainly have to maintain a minimum level of workers compensation insurance, as required by law in most jurisdictions. Workers compensation helps cover the costs of medical care, ambulance service, and even a portion of lost wages if one of your workers suffers an injury at work or comes down with a work-related illness. For instance, should an employee fall off the roof of a house while installing shingles and become unable to work for several weeks, workers compensation insurance removes liability from your company and covers the medical costs of the worker’s hospital stay, as well as part of the wages he would otherwise have earned.
What Businesses Need Contractor’s Insurance?
A wide variety of businesses can benefit from a minimum level of contractor’s insurance. Those in the following trades are likely candidates:
- Construction
- Carpentry
- Painting
- Plumbing
- Electrical installation
- Excavation contractors
- Landscaping
The sections below discuss these trades in greater detail, and explain how insurance for contractors can protect your business.
Insurance Coverage for Construction Projects
If your contracting company performs construction work, you need construction insurance to protect you against the particular inherent risks of your business. The combination of heavy machinery, dangerous power tools, and heavy materials such as wood, concrete, and stone, make the construction industry ripe for accident and injury.
Consult your licensed insurance agent to fashion a policy that protects you if you perform the following types of construction:
- Home Improvement—renovations, remodeling, home additions, etc.
- Building Construction—homes, office buildings, shopping centers
- Heavy Construction—highways, bridges, sports stadiums, and similar projects
Carpentry
If your business revolves around carpentry, you likely need some form of general contractor insurance. Carpenters climb ladders, erect heavy wooden frames, and work with sharp tools and power equipment, so injuries or property damage and subsequent liability are not only possible, but likely. Carpentry businesses include such niches as the following:
- Framers
- Deck builders
- Cabinet installers
- Woodworkers
- Handymen
- Carpentry contractors
Painting
Painters need contractor’s insurance since they or their employees spend a significant part of their time in precarious positions on high ladders. Falls are possible, paint spills can cause damage, and tools or paint cans falling from a height can cause serious injury.
Plumbing
Plumbers and similar tradesmen work with water, and the potential costs of water damage if they make a mistake are enormous. Water damage can destroy personal property, ruin flooring, damage furniture, and require thousands of dollars in repairs. The following trades should carry plumbing contractors insurance:
- Plumbers
- Pipefitters
- Septic tank installers
- Sprinkler installers
- Plumbing contractors
Electrical Installation and Repair
Electricians perform one of the most dangerous tasks imaginable—wrangling high voltage. The risks of injury or death are significant, and mishandling or mis-wiring a project can lead to shorts or power surges that can damage expensive, sensitive electronics equipment. The potential for liability is enormous, so electricians need adequate insurance to protect them should the unthinkable happen. If you are an electrician, make sure you have the types of insurance you need to protect you and your business.
Landscaping
Landscapers work with lawn mowers, weed trimmers, and other machines that feature sharp blades that whirl at blinding speeds. They often work around rare and expensive ornamental plants and flowers. The combination of these facts makes the liability for landscapers and the potential for injury or property damage very high. Thus, landscapers, tree trimmers, irrigation contractors, and landscape architects should always carry substantial amounts of insurance to protect their assets in case of accident, negligence, or legal trouble.
CGL Coverage available:
- Primary limits up to $3,000,000 Occurrence/Aggregate
- Per Project Aggregate
- Excess or Umbrella limits up to $25,000,000
Available at no additional charge:
- $5,000 Medical Payments Coverage
- Additional Interests—Blanket Coverage when required by contract, written agreement, or written permit for ongoing operations
- Primary and Noncontributory Wording—Applicable to additional insureds under CG 20 33
- Waiver of Subrogation—Blanket Coverage included per prior written agreement
Property Coverage available:
- Building
- Business Personal Property
- Business Income
- Basic, Broad, or Special Form
- Replacement Cost or Actual Cash Value
- Equipment Breakdown
- Contractor’s Equipment
- Inland Marine
- Accounts Receivable
- Computer Equipment
- Outside Signs
- Valuable Papers
Crime Coverage available:
- Inside the Premises—Theft of Money and Securities
- Inside the Premises—Robbery or Safe Burglary of Other Property
- Outside the Premises
Don’t take chances and overlook this crucial component of your General Contractor business.
How Much Coverage Do You Need?
The exact amount of coverage you need depends on several factors, including what project you’re working on, local regulations, and any unique circumstances that may apply.
Balsiger Insurance offers coverage across the United States, so we can provide coverage even if you’re going across state lines. For example, if you go up to Washington State, you’ll need at least $250,000 in general liability coverage, as well as auto coverage and possibly job-specific protection.
As a contractor, you know how important it is to manage your costs and risks. You want to get the most coverage at the best rates, and that’s why Balsiger Insurance offers highly competitive premiums.
While there’s no universal answer to the question of how much General Contractor Insurance you need, our experts can discuss your specific needs and situation to find the right amount of coverage for your plans.
Should You Change Coverage If You Change Your Business?
General contracting is a complex field. Some people specialize in specific roles like painting or carpentry, while others may switch between roles as necessary and do it all. General Contractor Insurance that’s enough for one job may not be enough for a different job, especially if you’re traveling for it.
The best option is always to contact Balsiger Insurance about your work plans. We can ensure that your coverage is high enough to let you move between roles as often as you want, with no lapse in coverage that could stop you from working.
Frequently Asked Questions
Here are some questions we often hear from contractors like you.
Am I legally required to have General Contractor Insurance?
Regulations for insurance vary by area. Some locations may only require a minimal amount of insurance, often auto coverage for getting to and from your worksite. Other regions may demand hundreds of thousands of dollars in general liability coverage before you can even set foot on your worksite.
There are too many variables for us to talk about all of them here. Instead, call Balsiger Insurance at 1-866-872-0156 for information about insurance requirements in specific areas. We offer insurance across the United States, so we keep an eye on the specific requirements in many different areas.
That said, even if you aren’t legally required to have General Contractor Insurance in a particular area, clients may insist on it before hiring you for a job. Maintaining coverage regardless of where you’re working can help you get more jobs, meaning it’s usually better to have coverage regardless of local regulations.
Does my insurance cover any of my subcontractors?
That depends on the specifics of your policy. Normally, General Contractor Insurance does not cover any subcontractors you have, and they will need to purchase their own coverage. However, it may be possible to add them to your coverage at a competitive rate. Talk to one of Balsiger Insurance’s experts if you’re interested in this.
It’s vital to know the insurance status of any subcontractors you work with because your clients may have requirements involving this. Many clients don’t care how contractors obtain insurance, but they will insist on seeing proof of insurance for everyone, including your subcontractors. If you can’t provide that, clients may refuse to consider you for the job.
Do I need a license or certificate to purchase General Contractor Insurance?
Typically, no. General Contractor Insurance is available to people working in many construction- and maintenance-related roles, including painting, carpentry, and electrical wiring. Each industry has different standards for licensing professionals, but almost anyone who’s performing a contracting role can get insurance coverage for it.
Should I have coverage besides General Contractor Insurance?
As you grow you will find your needs change. You may need worker’s compensation, professional, pollution, bonds, crime, cyber, EPLI, excess, commercial auto and more!
You will find that many of the contracts you enter in will require specific types and minimum levels of coverage. Our team is able to help review these before you sign to make sure you include enough in your bid to cover the insurance requirements.
Also, many trades have specific insurance policies that cover risks associated with that trade that isn’t part of general coverage. Landscaping, painting, cleaning, and carpentry are the kinds of trades where this additional coverage may be available.
Are there any ways to save more money on coverage?
Yes. You can often save money if you bundle multiple policies together from a single provider. Even if different companies have the lowest rates for individual policies, the total cost for all of those policies together is usually higher than getting coverage in a bundle.
You may also be eligible for discounts based on things like the type of work you’re doing, how much experience you have, and what licenses or certifications you possess. If you can demonstrate that you are a low-risk policyholder, you could get access to discounts that aren’t available to other contractors. Talk to one of our experts for more information.
Adding additional security measures and improving general job safety can also help you obtain discounts on your coverage. Insurance prices usually reflect how risky your business is and what your provider expects the average results to be. If you can demonstrably reduce your risk, you can save money.
Are there any tax implications for having General Contractor Insurance?
Many types of business insurance are tax-deductible, especially for federal taxes. As a general guide: if the expense is both common and necessary for your business, then it probably qualifies for deductions. Talk to a licensed accountant for more information on whether your business expenses qualify for any tax advantages.
Are there any special situations I should know about for insurance?
Yes. Insurance may apply in different ways depending on the exact nature of your work and your relationships with other people.
For example, regulations may treat 1099 contractors as employees in many injury cases, which means your insurance could end up applying to them. If several people get injuries all at once, you may end up with bills that significantly exceed your coverage.
Situations like these are why you should never assume that your policy covers specific people or events. It’s important to know the exact details of your coverage and what to expect from it.
At Balsiger Insurance, we know how valuable simplicity and clarity are. That’s why we have an experienced team of account managers and account executives ready to answer your questions and make sure there’s no confusion about what coverage you have, when it applies, and how it can benefit you.
What’s the difference between Claims Made and Occurrence policies?
Claims Made policies apply only for as long as you actively have the insurance. In other words, they apply when claims are made against the policy. If your coverage lapses, you have no protection for policies made during that time.
Occurrence policies apply to events occurring during a policy’s coverage, regardless of when someone files the claim. Most occurrence policies have lifetime coverage.
We usually recommend occurrence policies to general contractors because these offer more protection. Claims-made policies are usually cheaper from month to month, but since you’ll have to maintain them well after you’re done working to benefit from them, they may be more expensive for you over time.
How can I pay for my insurance?
There are several ways to pay for your insurance, including credit or debit cards, checks, or some electronic payments. Whether you want to set up an automatic recurring payment or choose exactly when and how to pay, we’ll help set up options that work for you.
Be sure to call us if you expect to have any irregularities in your payment schedule. We know that the needs of contracting work can result in irregular cash flow or little time to focus on anything except getting the job done. That’s why we’re committed to offering flexible payment terms and may be able to offer special extensions after considering your circumstances.
Choosing the Right General Contractor’s Insurance Policy
When selecting a policy for your business, be sure to consult with a reputable, experienced insurance agent. Choose an agent with a wealth of knowledge about the local insurance market who can explain what types of coverage are available and what you should look for.
General liability insurance is a good place to start, followed by commercial vehicle insurance. Commercial property coverage is indispensable if you have a physical location or storage facility, and worker’s compensation insurance is required in many jurisdictions.
If you are in the construction, carpentry, painting, plumbing, electrical installation, or landscaping businesses, you should be sure to choose a contractor’s insurance policy that covers you in the event of catastrophic loss. That way, you can continue to operate your business as long as you want to. Contact Balsiger Insurance to learn more about what we can do for you and your business.
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