What types of insurance do home renovation contractors need?

Maximize your potential by getting the right coverage for your home renovation business. Here are which policies can help.

David Granahan - Writer for NEXT Insurance
By David Granahan
Kelly Hendrickse - editor for NEXT Insurance
Edited by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Published June 19, 2023.

A home renovation job isn't just about making a space look good — it's also about making sure it's safe and functional. Your business as a contractor is the same.

Let's take a look at some policies that can help protect you as you take on more home renovation jobs.

General Liability insurance

General liability coverage is often requested before clients hire you as it shows you can handle costs should an accident happen. This type of insurance is designed to help cover you in case of:

  • Third-party property damage
  • Clients' bodily injury that might occur during the course of your work

For example, if you accidentally damage a client's furniture while working, this policy can help cover the costs of legal fees and damages.

Contractors Errors & Omissions insurance

Even the most careful and experienced contractors can make mistakes. Errors and omissions insurance can help protect you from professional liability, such as:

  • Errors that cause clients financial harm
  • Negligence claims

For example, if you're accused of poor work on a stairwell that caused your client injury, this insurance can help cover any legal fees.

Workers' Compensation insurance

If you have employees, workers' compensation insurance is required by law in many states. You might also need it for yourself to get a general contractors permit. This insurance can providescoverage for:

  • Employees' medical expenses if injured on the job
  • Lost wages while the employee recovers
  • Employers liability if you're sued for the workplace injuries

Tools and Equipment insurance

Since your tools and equipment are what allow you to carry out business tasks, it's worth considering tools and equipment insurance. This includes coverage for:

  • Equipment you own
  • Employees' tools and clothing
  • Any borrowed tools or equipment

Commercial Property insurance

If you own or lease a physical work or storage space, this coverage can be a game-changer. Commercial property insurance can cover:

  • Business equipment theft
  • Inventory or materials that get damaged because of a covered event, like a burst pipe
  • Business income interruptions because of a temporary shutdown

» Check out the licensing requirements for contractors by state

Protect your home renovation contractor business with NEXT

Insurance can be a tool that can help you avoid financial and reputational damage. And NEXT can help you tailor your business insurance to suit your needs. To view your options, simply apply online and get an instant quote in less than 10 minutes. Then, get your certificate of insurance and share it 24/7 with the NEXT app.

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