General Contractor Insurance

General contractors are not exempt from the need for business insurance. This insurance is designed to protect them from losses caused by accidents or negligence. It can also cover vandalism and theft of company tools. Most general contractors carry this type of insurance. It can be purchased individually or as part of a business owner’s policy.

General Contractor General Liability Insurance

General contractor general liability insurance is an important part of a general contractor’s policy. It covers bodily injury and damage claims. It also covers medical bills and settlement costs. However, it does not cover injuries caused to your employees. In order to avoid being sued, consider getting this insurance. If you are a contractor, it’s important to understand the ramifications of not having this insurance. In addition to the legal fees,  General liability for general contractors also pays for defense costs if you’re sued. This is an expensive part of a lawsuit, and a general contractor’s liability insurance policy can cover these costs.

Cost of general liability insurance for general contractors varies greatly depending on the type of construction business you have and the number of employees you have. You can lower your premium if you have a good claims history. Your business’s location is also a determining factor. Choosing a higher-risk area for your operation may increase your premiums.

General Contractor Workers Compensation Insurance

Workers’ compensation for general contractors is a type of contractor insurance that covers workers for injuries caused by their jobs. While most insurance carriers offer similar coverage options, the policy limits, deductibles, and other options can vary widely. The policy covers the medical and vocational expenses of an injured worker, but it does not cover any costs that fall outside these categories. These uncovered costs may include wages for a replacement worker and fees imposed by OSHA.

General contractor workers comp insurance premiums are usually quoted as a rate per hundred dollars of payroll. This premium range will depend on the industry and the level of risk. Lower-risk industries will have lower premiums than higher-risk professions.

Builders Risk Insurance

General contractors need specialized insurance policies to protect themselves against the risks of operating a construction business. Owners of large construction companies typically purchase the same types of policies as small and medium-sized contractors, but they also need specialized policies like wrap-ups and OCIPs. A good commercial risk advisor can help them determine what type of coverage they need for their particular business and what type of coverage will best suit their needs.

Builders risk insurance policies are designed to protect the owner and general contractor from financial loss if the property of another party is damaged or destroyed. Coverage for this type of risk is often optional, but many insurers offer this coverage as an extension of the base policy. Besides repairing property damage, the policy also provides coverage for lost or damaged electronic data, documents, and project information. The policy can even cover the cost of complying with new laws or regulations, which can lead to delays in completing projects.

Choosing the right type of general contractor insurance is important because each construction project will present different risks. A good insurance broker can help you choose the right type of insurance and get you multiple quotes. General contractor policies are often customizable and cover different risks and exposures in different phases of the construction project. The amount of coverage is also determined by the type of property and the risks you’re concerned about.

Commercial Property Insurance

Commercial property insurance can protect your building, equipment, and inventory. Buying this kind of insurance for your business can be a great way to protect your assets and save money. It is also important to understand that it is not inexpensive but can provide invaluable protection in the event of a disaster. For the most part, contractor insurance is priced based on gross sales. Premiums can vary from $15 to $25 per thousand dollars, depending on the type of coverage you require.

Professional Liability Insurance

Another important policy for a general contractor is professional liability coverage. Also known as errors and omissions insurance, this insurance helps protect contractors from financial hardship claims and helps with legal defense costs. It is often required by local governments.

general contractor business insurance is often required for working on third-party property. Professional liability insurance can cover accidental damage and faulty work at a job site. This insurance is also required by many commercial leases.

General Contractor Bond Insurance

General contractors also need to carry surety bonds. These bonds guarantee that if a client is sued, the contractor will compensate them. These bonds are available in three common types: bid bonds, performance bonds, and payment bonds. In exchange for these guarantees, the contractor pays a fee to the surety bond provider.