General Contractor Insurance
General contractor insurance is customizable coverage for general contractors, who are responsible for things like materials, equipment and worksite safety.
General liability insurance from the excess and surplus lines (E&S) market can safeguard your business from costly claims, including third-party injuries and property damage. The Progressive Advantage® Business Program can help you secure the best coverage for your specific risks.
Do general contractors need insurance?
Yes. General contractors manage expensive construction projects and oversee several types of contractor jobs. They often have employees or subcontractors working for them, which exposes them to multiple liabilities.
The most common general contractor insurance requirement is general liability. Many states, banks and clients require proof of this coverage before you move forward with a project. General contractors typically purchase general liability insurance in the non-admitted market, which is also known as E&S.
E&S carriers support high-risk professions most insurance companies don’t cover. They have more freedom to develop new coverages and structure policies for emerging risks because they follow different regulations than standard insurers.
Small business owners can obtain the same amount of general liability protection in the E&S market that they would get with standard insurers. They can also receive the same level of service, including the ability to speak with an agent and file claims.
Starting a quote is the best way to get general liability insurance for general contractors.
Does general contractors insurance cover subcontractors?
General contractors insurance usually doesn’t include subcontractors because they are not permanent employees. As a result, your insurance might not cover a subcontractor’s work if it damages a project or harms your client.
There are a couple of ways to navigate these insurance gaps with skilled tradespeople.
The first option is to only hire subcontractors who have their own insurance. This condition guarantees that every worker on your job site is protected, even if your policy doesn’t cover them.
The second option is to see if you can extend insurance coverage to your subcontractors. Adding temporary employees to your policy increases your premium, but some general contractors recover this money as an administrative fee on subcontractors’ pay.
Speak to an agent to learn what your general contractor business insurance policy can cover.
General contractor insurance cost
General contractor insurance cost depends on several factors, including your coverage needs, number of employees and claims history. Your exposure to risk also affects what you’ll pay.
General contractors and other high-risk professions need general liability insurance from the E&S market. Insurance in this market usually costs more than insurance from the standard market because E&S carriers support expensive claims that standard insurers can’t handle.
Other contractor professions, like a handyman or construction worker, will usually have lower insurance rates than a general contractor. These jobs are part of the same industry, but they have different responsibilities and risks.
The best way to find out your insurance cost is to get a general contractor insurance quote online.