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Whether you’re a general contractor or a home improvement renovator, your business is growing fast — and you need contractor insurance that can keep up.
At Simply Business, we work with insurers to provide general contractor insurance policies tailored to your specific risks. We do this by taking the time to understand your contractor business, so you can get a policy that offers full protection.
Best of all? We make it easy to get insured, because let’s face it - your day is busy enough! Fill out our online form and get free insurance quotes in under 10 minutes.
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Contractor insurance is actually a term used to describe a bundle of policies that provide comprehensive coverage for general contractors. This coverage is meant to protect you from the biggest risks you face in your job, like damage to property and injuries.
Let’s take a closer look at the basic coverages we recommend for general contractors.
General liability coverage for contractors provides coverage against costs associated with third-party accidents, property damage, and bodily injury. Having general liability insurance can be essential for your contracting business, as your type of work carries greater risk for those types of incidents.
Here’s why: Anything can happen when you’re a contractor. A customer might trip over tools left lying on the ground, or you might damage a client’s furniture unintentionally during a home remodeling project.
If you’re not protected with general liability insurance for contractors, you may be forced to pay for those accidents and damages from your own pocket. And those costs can be substantial: in fact, it’s estimated that the average claim for property damage for small businesses is $30,000.
As a general contractor, your line of work puts you at greater risk for damage and accidents. That’s why we highly recommend adding this policy to your overall business liability insurance!
Another benefit to getting general liability insurance: It may be required for you to get your contractor’s license. A majority of states require general contractors to carry proof of a general liability policy before issuing a license. If you’re not sure what your state requires, check out our handy state-by-state guide on how to get a contractor’s license.
As a recap, here’s what your general liability insurance can cover:
Here’s what general liability insurance usually doesn’t cover:
Even with the best training, the right tools, and years of experience, mistakes can happen. That’s where having professional liability (PL) coverage as one of your business insurance policies can really help.
Professional liability insurance provides coverage if your customer sues your business for mistakes related to your services. Your PL policy may cover any damages and legal costs that you might be ordered to pay as a result of that negligence.
Winning the case in court is only half the battle. The costs involved in a lawsuit can be pretty hefty as well. A report from the Small Business Administration revealed those costs can be anywhere from $3,000 to $150,000.
If you have any employees - even if they’re part-time or temporary - your state may legally require you to have this coverage. A workers comp policy protects you and your business if your employees get hurt, injured, or sick while working on the job.
And it’s not just to fulfill a legal requirement. In many states, proof is required if you want to be a licensed contractor with employees. Again, if you’re not sure what your state requires to get licensed, check out our contractor’s license resource center.
Carrying workers compensation can provide much-needed security, as having this coverage prevents an employee from suing your contracting business for workplace injuries.
Workers compensation insurance for general contractors can cover:
As a contractor, your tools are your livelihood, so it makes sense to protect them from loss or damage. Inland marine insurance is coverage that helps to financially protect the tools and equipment you use while in transport or on a job site.
This coverage can financially protect your business property from occurrences like:
Your policy can help to cover the cost of repairs or replacements, up to your policy's limit.
Tools are critical to doing your job,but there are other types of equipment and property that you need to run your business. Consider your laptop, your mobile phone, even your inventory of materials and supplies. Now think about what that would mean to your business if they were stolen, damaged, or destroyed.
Chances are you’d need to replace all that business property, fast. And that could result in a big expense.
With business personal property (BPP) insurance, you’re typically covered for the cost to repair or replace the equipment, furniture, fixtures, and inventory that you own, use, or rent inside your workspace.
We get that, as a business owner, you’re probably trying to budget as much as possible. That’s why it may be tempting to put off getting insurance or avoiding it altogether, especially if you don’t feel like it adds any value to your business.
But here’s the thing: General contractors like you are at risk to the kind of property damage claims that can be absolutely catastrophic to your finances.
For example, if you get sued for accidentally causing significant property damage to a customer’s home, you may have to pay for legal fees and damages out of your own pocket - or your family’s finances - if you are not properly insured.
Speaking of getting sued, business insurance coverage can offer significant peace of mind if a customer decides to sue you over your services, even if you did nothing wrong. Client lawsuits are more common than you think; it’s estimated that 43% of small business owners have reported being threatened with or involved in a civil lawsuit.
Additionally, many states require contractors to have coverage, especially if they have employees or work on certain projects. Plus, if you want to be licensed as a contractor, you will need to show proof of coverage.
Oh, and one more thing: Many customers won’t work with you if you’re not licensed and insured. There’s a lot of advice out there warning people to only work with insured contractors, so it’s a good idea to get this coverage if you want to increase your clientele base.
When you get contractor insurance through Simply Business, we’ll provide you with a certificate of insurance (COI) so you can start providing proof of coverage.
Most states require contractors to carry workers compensation insurance if they have employees. Additionally, a majority of states require proof of a general liability policy in order to give you a contractor’s license. Since it may be illegal to do contracting work without a license in your state, we recommend that you cover your bases with general liability insurance coverage.
In general, you can deduct the cost of your liability premiums when filing your business’s taxes. When it comes to your business’s tax deductions, we recommend talking to an accountant if you have any questions.
Every contractor and business owner is different, which is why your coverage is usually tailored to:
Our quote form helps us determine your recommended amounts of coverage from top insurers. If you have more questions, our licensed insurance agents will be happy to help!
We know time is precious, and you don’t want to spend lots of time trying to figure out what coverage you need. To get your free general liability policy quotes for your contractor business in under 10 minutes, we recommend having the following on hand:
Insurance requirements differ from state to state, especially for contractors. We can help you by providing you with recommended coverage options based on your business’s location. Additionally, our licensed agents can help you better understand your state’s specific requirements for general liability coverage for contractors.
A comprehensive general business insurance product - one that includes general liability and workers’ compensation (if you have employees) - can cover:
The great thing about business liability policies for contractors at Simply Business is that they can be tailored to cover your specific needs. Whether you need just a GL policy or want coverage for your tools or equipment, too, we have the policies you need to protect your business.
The cost of your contractor insurance policy will largely depend on the type of work you’re doing, as well as the risks you face in your day-to-day work. For example, roofers may pay more for their policy, as they carry a higher risk for injury and property damage.
Want to figure out how much you may pay for your coverage? While there’s no one right answer, the final price of your policy is usually determined by:
Want to get an idea of your contractors insurance cost? Just click here to answer a few questions about your business.
IIf you’re a business owner who performs other services, our licensed agents can help you find the right insurance coverage that can offer robust protection.
Simply Business is an online insurance brokerage that makes it easy for general contractors to compare and get contractors insurance from top insurers. We’re also one of the fastest-growing online providers of liability insurance for small business owners, meaning thousands of customers trust us to protect their growing businesses.
So why choose Simply Business? It’s, well, simple:
We’re fast and affordable. Why spend time comparing the rates of each insurance company. You have better things to focus on, like running your business. Our policies are fast, affordable, and ready when you are.
We’re flexible with coverage. Whether you need increased contractors insurance coverage because you bought new equipment or a COI, we’re here to help.
We get your business. Forget one-size-fits-all insurance. Get the protection your contractor business needs, when you need it the most.
You’ve worked hard to build your contractor business. That’s why we offer the best coverage to protect it.
This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.
Simply Business1 Beacon Street, 15th FloorBoston, MA02108
*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.