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All contractors should obtain a contractor insurance policy to safeguard their business, staff, and clients in case of an accident or an injury that results in a claim or a lawsuit.
Legal actions against contractors can be a big financial burden for any company that doesn't have the necessary insurance in place. A single accident can put a contractor’s entire livelihood at risk.
Below, we will look at recommended insurance policies for contractors as well as which types of contractors can benefit most from insurance and why.
How Much Does Contractors Insurance Cost?
The cost of contractors' insurance will depend on the level of coverage you opt for, the size of your business, and the insurance company you select.
Generally speaking, you can expect to pay a few thousand dollars per year if you’re a small to medium-sized business with employees and company cars. To break it down, you can expect to pay around:
- $900 for general liability insurance per year
- $2,000 for worker's compensation insurance annually
- $1,500 per year on commercial auto insurance
- $140 per year for contractor's tools and equipment insurance
To obtain an exact idea of costs, please apply online for a free quote.
What Insurance Policies Are Relevant for Contractors?
Contractors can take out various types of insurance policies. The types of coverage recommended depends on the size of your business, the size of your staff, if you own company vehicles, the state you operate in, and more.
Below, you can find some of the most recommended insurance policies that contractors take out all over the United States.
General Liability Insurance
General liability insurance - also known as contractor general liability (CGL) is designed to protect you and your company from any “general” claims that are in relation to bodily injuries and property damage resulting from a contractor's work.
Most contractors in the United States can benefit from a CGL insurance policy in case a claim is made against them for any third-party damages, such as personal injury or damage to property resulting from a contractor's work.
Workers Compensation
Workers' compensation insurance, also known as workman's comp, is an insurance product that provides employee benefits for workers who have been injured or become ill because of their employment.
This type of insurance is legally required and covers employers in the case of bodily injury and lost wages of their employees that get injured while on the job.
How to Apply For Contractor Insurance
Simply fill out our online application, and one of our experienced insurance professionals will be in touch with you within one business day to obtain the coverage needed for your business.