General Contractors Insurance
Do you need General Contractors General Liability Insurance?
Are you a general contractor looking for general liability insurance? If so, our professional team at Contractors Liability is ready to answer your questions. We can also provide you with a fast and free quote and have a number of payment options.
Take a look at our video “Contractor’s Liability coverage and endorsement”
General Contractor Liability Insurance
General liability insurance is the best option for general contractors to cover your business, your assets, and yourself, at a reasonable cost.
Getting contractors the best general liability insurance policy at a low-cost is a specialty at Contractors Liability. We urge all general contractors to have, at a minimum, a general liability insurance policy when establishing their contracting business.
In most states, general contractors are required to carry general liability insurance in order to pull a permit or register as a general contractor.
Many clients will not let you start work without a policy, especially on larger projects. These policies also offer you protection from losses if an accident should occur; do not take the risk of not having insurance.
You can contact an agent at Contractors Liability to get a policy that is specifically designed to protect your business. General liability insurance is the best choice for all general contractors, and Contractors Liability can help you find a plan that fits with your needs.
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General Liability Insurance Cost
It is more difficult to calculate the exact cost of General Contractor General Liability Insurance because no two General Contractors do exactly the same type of work and the same amount of work. However, at ContractorsLiability.com we make sure your liability insurance requirements are being met, so contact us today for a free quote that takes your unique needs into account. When you contact us we can go about completing your personalized insurance plan.
Common factors that insurance companies use to determine insurance costs:
- Type of work being performed
- Amount of revenue of the company.
- The number of employees.
- Amount of coverage requested.
- The State where the company is located.
- The prior loss history(ie. Have there been insurance claims in the past 5 years).
These are the main factors in how Insurance companies determine your premium.
General Contractor General Liability Rates for $1 Million/$2 Million Policy
|Policy Type||Trade||State||Coverage||Next Insurance||Ace Insurance||Rockingham||PCIC||United Specialty||Shield|
|General Liability||General Contractor||IL||1M/2M||$830||$960||$1,560||$760||$760||No coverage|
|General Liability||General Contractor||TX||1M/2M||$850||$760||$1,240||$810||$660||$890|
|General Liability||General Contractor||CA||1M/2M||$950||$940||$1,750||$760||$830||$1,300|
|General Liability||General Contractor||NY||1M/2M||$1,220||$1,320||No Coverage||$980||$1,150||No Coverage|
|General Liability||General Contractor||CO||1M/2M||$730||$740||No Coverage||$650||$670||No Coverage|
|General Liability||General Contractor||GA||1M/2M||$680||$720||$1,460||$640||$1150||$1,150|
|General Liability||General Contractor||MO||1M/2M||$740||$690||$1,560||$630||$630||$1,230|
|General Liability||General Contractor||KS||1M/2M||$750||$680||$1,540||$645||$590||$1,130|
Rating assumes 150,000 gross revenues for roofing/general contracting with 10% subcontractor costs.
Premium are subject to underwriting approval and financing charges may apply
What does General Liability Insurance Cover?
General liability insurance covers general contractors against claims made by their clients and/or third parties for any damage that may have been caused by the contractor or their employees. General contractors realize that there are risks associated with the work they do. General contractors take painstaking measures to ensure safety and their reputation. They usually will go above and beyond to protect their clients and third parties from suffering a loss. General contractors know that this is how they can differentiate themselves from their competitors and make the business grow.
No matter how vigilant you are, accidents and losses happen. That is the reason why general liability insurance exists. Here are some of the types of damages contractors experience that are covered by general liability insurance:
This protects against certain claims alleging financial loss due to bodily injury arising out of your business operations or products.
EXAMPLE: A piece of unsecured equipment falls off the roof and hits a client or third party in the head, causing a concussion or a broken shoulder.
This covers property damage to your client’s property or a third parties property..
EXAMPLE: You are repairing a client’s chimney and it collapses and falls onto the neighbor’s house.
Helps protect your business against certain claims of false arrest, malicious prosecution, libel, slander, wrongful eviction, violation of the right of privacy and more.
EXAMPLE: You use pictures of your work in your promotional materials and inadvertently have images of people in the background and you do not have their consent. They sue your business you have coverage.
Helps protect your business from claims if others allege you infringed on their copyrights when advertising goods, products, or services in your advertising campaigns, social media, or websites.
EXAMPLE: You use the brand name of a product that you install after talking to the company representative over the phone. You are unaware that they require a written authorization to use their name brand on any media not provided by them.
Helps cover medical costs if someone is injured on your business premises and needs medical treatment..
EXAMPLE: The client comes to your shop to discuss a project and an employee does not see her and hits her with a skip loader.
Helps protect your business against certain claims for damage to premises rented to you due to certain types of loss.
EXAMPLE:You operate a General Contracting company out of a warehouse you rent. You have a number of battery-operated tools that you recharge every night. The batteries overheat and cause a fire.
WHAT IS NOT COVERED
Here are some situations that would not be protected by general liability insurance coverage.
- Employee injuries: Workers’ compensation is the insurance you would need to protect your employees when they are hurt on the job. EXAMPLE: Your General Contracting Company is installing some siding and the employee falls off a ladder while installing the siding breaking his leg. This is not covered
- Professional mistakes: Errors and Omissions Insurance or Professional Liability Insurance. EXAMPLE: General Liability insurance coverage won’t cover a professional mistake, but professional liability will. It insures against mishaps that may occur as you offer your opinion, service or recommendations in the course of business.
- Auto-related coverage: General Liability Insurance coverage does not protect you against auto accidents. You need to obtain a separate auto policy to cover the vehicles used in your business.
- Punitive damages: General Liability Insurance policies normally do not pay for punitive damages resulting from a lawsuit.
- Intentional acts: General Liability Insurance does not cover damages or injuries resulting from intentional acts. EXAMPLE: An employee gets mad at a customer and drives a bulldozer into the side of their house, your business liability coverage would not cover the damages if they sue.
- Your work: Referred to as the “workmanship or Warranty” exclusion. EXAMPLE:You put a new roof on a house and do not properly attach the singles. There are high winds 60 days later and half the shingles come off.
Cost-Effective General Liability Insurance
It is difficult to calculate the exact cost of general liability insurance because each general contractor has different work schedules and types of projects they are working on. Common factors that influence the cost of a liability insurance policy include the type of work performed, revenue, number of employees, the scale of coverage requested, location of company, and the company’s prior loss history (ie. have there been insurance claims in the last 5 years).
At Contractors Liability, we make sure your liability insurance requirements are being met with cost-effective solutions. We work with top-rated insurance carriers to find you the best coverage at the lowest price. Contact us today for a free quote that takes your unique needs into account.
What Are The Requirements To Obtain General Contractors General Liability Insurance?
At ContractorsLiability.com we make it easy to get cheap and affordable General Contractors General Liability Insurance. We can have policies in a few hours. We will be able to issue your certificates of insurance right away so you can get to work. All we need is explained below, so keep reading.
- Name and Structure of Business- We will need the exact name of the business along with whether you are a Sole Proprietorship, Partnership, Corporation, or LLC. We would also need any DBA you may use.
- Type of Work Performed- Do you do residential or commercial work. If you do both what are the approximate percentages of each type of work. Is the type of work you do new construction or remodeling of existing structures. Again if you do both an estimate of the percentage of each type.
- How Long Have You Been In Business or Experience- We will need to know how long you have been in business. If you have been in business for a while we will need what is called loss runs. These can be obtained from your previous insurance company. These are reports that give a detail of any claims your business may have had. At ContractorsLiability.com we can help you obtain these if you want us to do so. Do not worry if you are a new business. We specialize in getting General Contractors General Liability Insurance for new companies. The only thing we would need is a little information on your work experience in the construction industry.
- The number of Employees and Payroll- We would need to know the number of employees in the business and Payroll.
- Gross receipts of the Business- The previous 12 months gross receipts and an estimate of the next 12 months gross receipts. It is always best to give a conservative estimate of future earnings. However, be aware that most insurance companies will perform an “audit” after the policy term to determine what the exact revenue was. If you estimated to low you will be given a bill for the difference.
- Do You Require Sub-Contractors to Name Your Business as Additional Insureds- If you use sub-contractors, it is a best practice to always require them to provide you a certificate of insurance naming your business as an additional insured before you allow them access to the job site? There are many good reasons to require this but the two most important are that if you have a certificate of insurance from them any amount you pay them with not be counted towards your revenue during your audit of your General Liability Insurance for General Contractors. Another reason is that if the cause of any incidents where a claim is filed it will go against their insurance rather than yours. As you know if you have claims insurance premiums rise.
- Policy Limits- The lowest limit General Contractor General Liability Insurance policy we sell is $1,000,000 Occurrence $2,000,000 Aggregate. This is the standard industry amount. Some States allow for lower limits, but the savings are too small to justify issuing those policies. For example, a $300,000 Occurrence $600,000 Aggregate policy will only result on average less than $50 per year in premium. It is not worth the risk to save a few bucks.
- Large Policy Limits- In some instances, you may need higher limits as a result of contractual obligations. These higher limits will be found in the insurance section of any contract you are negotiating. It is always best to forward this section to your agent so that they can get you exactly the coverage the contract calls for.
- Licenses- If your State requires General Contractors to be licensed you will be required to provide your license number or a copy of your license.
- Signature- You will need to review and sign the application and send it back.
- Payment Options- At ContractorsLiability.com we offer a number of convenient payment options for your General Contractors General Liability Insurance Policy. We can accept Debit Cards, Credit Cards, and Checks. We have a number of financing options as well. We will work with you to get you set up with the payment plan that is right for your business.
Why Choose ContractorsLiability.com Over Other Insurance Companies?
There are many insurance agencies out there, and you might be tempted to go with the one you see constantly advertised on the television or even one that is closer to home. However, Contractors Liability is certain that if you want the best policy, you need to work with specialized agents like ours. Along with our customer satisfaction guarantee, we:
For more information, contact Contractors Liability for more information or a free 5-minute quote. It is possible to have complete coverage for your roofing business.
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