An accident at a construction site could spell disaster for your small business. Business insurance for contractors helps cover expenses related to worksite injuries, stolen equipment, and other risks you face every day.
Insureon helps general contractors find construction insurance that matches your unique risks.
Get free expert advice and peace of mind knowing you have the right property and liability coverage for your small business.
These commercial insurance policies cover the most common general contractor risks.
This policy covers basic risks, such as a client who trips over your toolbox and suffers an injury. Bundle with commercial property insurance for savings in a business owner’s policy.
A BOP bundles general liability coverage and commercial property insurance at a discount. It's often the most cost-effective type of insurance for general contractors.
Most states require workers’ comp for general contracting businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
This policy covers the cost of injuries and property damage in accidents involving a general contractor’s vehicle. It can also pay for repairs to vehicles damaged by weather or vandalism.
This policy helps pay for repair or replacement of an independent contractor’s saws, nail guns, hammers, and other tools if they are lost, stolen, or damaged.
This policy is also called errors and omissions (E&O). It covers legal fees when a general contractor is sued over a mistake, such as using the wrong materials.
A bond guarantees reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common bonds include bid bonds, performance bonds, and payment bonds.
This policy covers structures in progress and materials, often paying for damage caused by fire, vandalization, and non-severe weather events.
Contractors pollution liability covers costs related to pollution, such as a lawsuit alleging harm caused from exposure to silica dust on a construction job site. It's sometimes referred to as environmental insurance.
General contractors and handymen may need the following types of coverage to comply with state and local laws and license requirements.
General liability insurance is the foundation of a general contractor's protection. It covers accidents that damage a client's property or cause a bodily injury, along with libel and other advertising injuries.
In some states, Georgia and Tennessee for example, contractors are required to maintain general liability insurance coverage with varying minimum requirements.
Workers' compensation insurance covers medical costs and disability benefits when an employee is injured on the job or develops an occupational illness. It's a key policy within the construction industry and related professions. Most state laws require construction and home improvement businesses to carry this coverage – especially high-risk professions like roofing.
Commercial auto insurance protects business vehicles owned by your general contracting company. This policy covers property damage and medical bills in the event of an auto accident, as well as vehicle theft, weather damage, and vandalism. Most states require this coverage for business vehicles.
Surety bonds guarantee reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common bonds include bid bonds, performance bonds, permit bonds, and payment bonds. Some state licensing requirements include a surety bond, depending on the type of services you offer.
A general contractor who works alone will pay less for insurance than a small general contracting company.
Factors insurance providers look at during underwriting that affect contractor insurance costs include:
