How Much Is Insurance For Contractors? (Costs & Coverage)

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How Much Is Insurance For Contractors?

How Much Is Insurance For Contractors?

How Much Is Insurance For Contractors? Contractors need several types of insurance to cover the risks and liabilities of being in business. Contractors have risks over and above many general businesses, so you'll need to take the extra needs of the industry into account when you price out your business insurance.

Because contractors have a variety of standard needs, many insurance carriers bundle or package the various policies so that you pay one premium to cover all the policies. Let's take a look at the various insurance needs for general contractors.

How much is insurance for contractors? The short answer is yes. Most general contractors will require that you commercial insurance and name them additional insured to be sure you have it.

So How much is insurance for contractors? A disclaimer: The suggested premium prices are sample estimates to give you an overall idea of costs. While these quotes represent the typical cost of insurance for a small general contracting business, your actual premiums may vary based on several factors including what trade you are in, location, employee size, gross sales, industry experience, claims history and others.

You can skip to the following answers about how much is insurance for contractors using these links:

How Much Does General Liability Insurance Cost For Contractors?

Commercial general liability insurance protects your contracting business from the costs of lawsuits over unforeseen events like injury, problems with your work like a window installation that leaks onto a floor, or property damage.

How much is insurance for contractors?

Generally premiums range in price from around $500 to $1500. The standard claim limits are $1 million dollars per claim and a ceiling on the total policy payout limit (called aggregate), is $2 million annually. By altering the out-of-pocket deductible-the average is around $1,000-you can adjust your premium. Every contracting business needs general liability insurance.

How Much Does Commercial Property Insurance Cost For Contractors?

How much is insurance for contractors? Property insurance reimburses your business for damage to equipment and property due to:

  • Fire
  • Theft
  • Vandalism
  • Covered weather events

Commercial property insurance covers you against damage to your buildings and business contents due to a covered cause of loss, such as fire. How much is insurance for contractors? Premiums can range from approximately $250 to $1650 depending on your circumstances. The standard deductible is usually around $500.

How Much Does A Business Owners Policy (BOP) Cost For Contractors?

A business owners policy, aka BOP, is a package offered by most insurance carriers that packages together general liability, property damage and business income insurance to save overall premium costs. Premiums can range between $500 and $1000 giving you a great overall savings when compared to purchasing the premiums separately.

How Much Does Inland Marine Insurance Cost For Contractors?

Inland Marine covers your equipment, tools, and supplies while there are being transported to and from job sites. It covers the cost to repair or replace stolen or damaged goods. How much is insurance for contractors? Premiums typically range between $500 and $760 usually without a deductible.

How Much Does Commercial Auto Insurance Cost For Contractors?

The fleet of vehicles owned and used by your business is covered under business. It covers liability from bodily injury and property damage and can cover repairs after an accident. Most personal auto insurance policies do not cover vehicles for business use, so you'll need business auto for your vehicles. Premiums usually range between $1850 and $2850 with a normal limit of $1,000,000.

And similar to personal auto, driving history, type of vehicle and cost and zip code effects your rates.

How Much Does Workers Compensation Insurance Cost For Contractors?

Most states require employers to have workers comp if the have employees. In addition, as a general contractor you may be required to carry workers comp even if you hire subcontractors and independent contractors. This insurance covers medical costs and lost wages for employees injured performing work related tasks during a construction project. How much is insurance for contractors? General contractor premiums typically range between $1,225 and $7660.

How Much Does Commercial Umbrella Insurance Cost For Contractors?

Commercial mbrella insurance adds excess liability coverage to underlying liability policies including general liability and the employer liability section of workers comp. How much is insurance for contractors? Annual premiums for contractors umbrella generally range between $1,000 and $2,050 per extra million of coverage.

For example if your general liability insurance covers a lawsuit up to $1,000,000 but an actual award for the lawsuit is for $1.5 million, the umbrella policy kicks in covers the difference.

How Much Does A Surety Bond Cost For Contractors?

Contractors need a license and permit bond to apply for a license and building permits. How much is insurance for contractors? You'll usually pay between $100 and $300 to get bonded. This is a cost of doing business for all general contractors.

Business Insurance Costs For Contractors

As you can see the choices for contractors are many. The business assumes a number of risks over and above many other businesses with equipment, tools, and vehicles as well as covering subcontractors.

You now have some basic numbers to shop various business insurance providers to compare premium pricing, bundle options, deductibles, and policy limits. Covering risk is an important aspect of doing business. The smart contractor will shop for the best combination of policies to cover the wide variety of risks associated with the business.

The numbers here are only guidelines for pricing commercial insurance premiums in today's insurance market. How much is insurance for contractors? It pays to do the homework to match the best coverage with the most affordable premiums for your business.

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Small Business Insurance Articles

Business insurance articles are helpful for a number of reasons. First and foremost, they provide information about the various types of insurance available for businesses. This can help business owners make informed decisions about which insurance policies are best for their needs.

Additionally, business insurance articles can help business owners understand the importance of having insurance. Many business owners may not realize the risks they are exposed to, and insurance articles can highlight the potential consequences of not having the proper coverage.

Furthermore, business insurance articles can help business owners stay informed about changes in the insurance industry. This includes changes in laws and regulations, as well as updates on the various insurance policies available. This can help business owners stay on top of their insurance needs and make sure they have the coverage they need.

In summary, business insurance articles are helpful because they provide information about the types of insurance available, highlight the importance of having insurance, and keep business owners informed about changes in the industry.

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