General Liability Insurance For Contractors

For independent contractors and building companies, general liability insurance for contractors provides cover against legal action for bodily injuries, advertising damage and property damage claims. Without it, business owners would be forced to pay for some liability claims. This type of insurance is also known as business liability insurance.

We are aware that the job of contractors involves a high level of risk. General liability insurance for a contractor might be useful whether you’re working in a customer’s house or having client meetings in a store.

What Does General Liability Insurance Cover for Contractors?

General liability insurance for contractors can help in covering the expense of claims for:

  • Bodily injury
  • Personal injury
  • Property damage

In the course of normal business activities, various types of general liability claims may surface. Mistakes can still occur in your contracting business, no matter how carefully you try to handle them.

Who Needs Construction Insurance?

General liability insurance for a contractor covers different types of construction businesses such as:

  • Contractors
  • Plumbers
  • Handymen
  • Home renovation
  • Masons
  • Electrical contractors
  • Security companies
  • Carpenters
  • Home-builders
  • Developers
  • Independent contractors

General Liability Insurance Cost for Contractors

Costs for general liability insurance can differ. This is so because every company is different. When determining general liability insurance cost, insurance companies consider some factors. This includes:

  1. The type of business you own: Every business is different and unique in its own way. Compared to other firms, contracting businesses could be more risky. Therefore, your rate could be higher.
  2. Years of experience: Depending on how long you’ve been in business, experience may influence the cost of your general liability policy.
  3. Number of employees: The number of employees is one of the factors that can determine the cost of a general liability insurance policy, because the level of risk increases with the number of employees.
  4. Business location: The cost of insurance may rise if you live in a location with a higher crime rate.
  5. Policy details: Details such as coverage limits and deductibles. Rates may rise with additional coverage and a lower deductible.
  6. Claims history: This is because, with clean histories, you can get lower costs.
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However, the average cost of general liability insurance for contractors is about $90 per month, or $1,090 per year, depending on the factors stated above. Getting a general liability insurance quote is the best way to learn how much your coverage will cost.

General Liability Insurance For Contractors

Why Do Contractors Want Good General Liability Insurance?

Most clients will often want contractors to have general liability insurance. They won’t do business with you if you don’t have one. Clients need this policy because they want evidence that you are able to pay for legal expenses. Additionally, customers want assurance that they won’t be responsible for paying the bill if your company causes them to lose money or get hurt.

Every business owner wants the best services, from banking to transportation, communication and insurance. There is always a chance for mistakes and the unexpected. For this reason, working with a reputable insurer is very important.

Furthermore, general liability insurance for independent contractors is important for the following reasons:

1. It covers you and your business

Independent contractors are subject to the same legal requirements and liability risks as larger businesses. They may be held liable for causing bodily injury, destroying client property, or causing advertising damage. In the event of a lawsuit, general liability insurance helps in paying the associated costs.

2. Your clients require that you have it

Before they enter into a contract with you, your clients could demand proof of your general liability insurance. Without this coverage, they might be held liable for accidents or alleged wrongdoing brought on by you or your work.

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3. It may be required by law

Independent contractors in some industries, like construction, may be required by state rules to hold general liability insurance. It is typically better for you and your client to have different business liability insurance coverage.

How Does A Contractor Get General Liability Coverage?

General liability coverage is available to independent contractors in two ways:

  • You can get a general liability policy for yourself: You can buy general liability coverage from an insurance company. Ask the company for a certificate of insurance so that you may prove your coverage to a client. This policy is typically more affordable for your clients.
  • Your clients can add you to their policy as an additional insured: This indicates that their insurance will protect you for the entire project or longer. Multiple contractors may be covered by a company’s general liability insurance. Customers will normally pay more to add you as an additional insured to their policy. Nevertheless, depending on the circumstances, they might decide to add you.

Additional Liability Insurance Coverage for Contractors

Contractor insurance includes more than simply general liability coverage. To have comprehensive coverage, you should probably think about purchasing other types of small business insurance. You can obtain many coverage options, such as:

  • Commercial property insurance: This will help to cover the owned or rented building and equipment used for your operation, such as your:
  1. Computers
  2. Tablets
  3. Tools
  4. Power equipment
  5. Heavy equipment
  • Business income insurance: This helps to insure lost income if you are unable to operate due to covered property damage.
  • Data breach insurance: In the event that personally identifiable information is misplaced or stolen, data breach insurance can help you deal with the situation. This coverage is sometimes referred to as cyber insurance.
  • Workers’ compensation insurance: Your employees will benefit from workers’ compensation insurance if they suffer an illness or injury at work. This coverage, often known as workers’ comp, can assist in covering an employee’s medical costs. It provides them with benefits so they can heal and go back to work.

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