General liability insurance helps to protect your business from the risks that affect almost every contractor. It’s the most common type of insurance for small businesses and self-employed professionals, and it’s typically the first insurance policy contractors purchase.
General liability insurance, or contractor liability insurance, covers a wide range of construction accidents and basic risks. It includes contractors’ E&O, or professional liability coverage, which can help cover costs in a business disagreement.
You’ll have financial protection from accidents that can happen at almost every contracting business, such as:
Learn more about what general liability insurance covers.
As a contractor, having the right types of insurance for your contracting company means that you don’t have to pay out of pocket if an accident does occur. With the right coverage, you can do your work and focus on the job at hand without worrying about those pesky “what if” scenarios.
If an appliance technician cracks a tile floor while installing a new dishwasher, for example, general liability insurance can help cover the costs to repair it. Or if a client trips over a plumber’s toolbox and injures their ankle, this insurance would help cover medical costs and legal fees.
You’ll also need general liability insurance to get most of your jobs. In fact, you’re almost always required to have insurance in order to get licenses and to win contracts.
Check out which states require contractor licenses:
There are a few types of risks that you could encounter if you’re in business long enough. Working with clients, vendors and property that doesn’t belong to you opens you up to a range of possible mishaps.
Here are some common risks you might come across:
Your employee tracked wet cement onto a rug during a residential remodel. Or you accidentally damage electrical wiring while repairing a wall.
Your general liability policy can help cover you for damage that you cause to someone else’s property.
One of your employees accidentally injures a passerby when cinder blocks fall out of a pickup truck. General liability can help pay for an injured person’s medical expenses up to your policy limit, excluding employees and yourself.
Your client trips over unfinished flooring and breaks their wrist, winding up in the emergency room. Your insurance could help cover their loss of income if you are deemed responsible and the injured person is forced to miss work.
After renovating a client’s house, you take some pictures and use them on your website as an example of your work. Your client sees the photos and sues you for invasion of privacy. General liability would help to pay for your legal fees.
Your client alleges you used materials that were not in your plans and takes you to court. General liability would help to pay for your legal fees.
Your social media intern claims a competitor offers substandard services on one of your accounts. The business owner sues you for defamation of character because he says your campaign is untrue. General liability would help to pay for your legal fees.
NEXT customizes all of our insurance policies so your business has tailored coverage. General liability can cost as little as $62.5 monthly for contractors’ liability insurance.**
The median cost of general liability insurance for contractors is between $51 and $78 per month.
The exact price you’ll pay depends on your business location and operations, the type of work you do, where you work and your claims history are some of the factors that will impact your quote.
While cheap general liability insurance for contractors isn’t always possible if you want adequate coverage, you can take several steps to lower your premium rates and reduce your general liability business insurance cost:
A safety and training plan can help to limit the likelihood of accidents and claims that could eventually raise your insurance costs.
Analyze your previous claims and figure out what you could have done to avoid those risks.
For instance, your ladder wasn’t tall enough and it collapsed when you were on the top step. Luckily, you weren’t hurt, but the ladder went through a window. Next time, you could use scaffolding or a taller ladder.
Lower limits will save you money, but you will have higher exposure to risks if you don’t get enough coverage. And if you choose a higher deductible, you will pay less for the policy (a deductible is the amount of money you pay before your insurance policy kicks in).
You can save up to 10% if you purchase more than one type of coverage with NEXT. For example, if you buy a commercial property policy and general liability policy, you could save on your insurance costs.
NEXT offers convenient, affordable options for contractors insurance. We keep it simple and straightforward so you can find the coverage that’s right for you within a few minutes.
Our online services make it easy to apply using any computer or mobile device. You can compare insurance options, purchase coverage and get a certificate of insurance in just minutes.
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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.