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Home Improvement Contractor Insurance

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Home Improvement Contractor Insurance That’s Customized to You

Whether you specialize in bathroom renovations or basement remodeling, your home improvement business is growing fast. That’s why you need insurance that can keep up!

At Simply Business, we specialize in business insurance coverage designed for home improvement contractors like you. Our insurers’ policies cover the unique risks you face as a contractor, so you can be protected as you work.

Plus, we make it easy to get covered: find an online quote in under 10 minutes or call one of our licensed insurance agents for expert help picking the right policy.

Ready to get covered?

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Insurance FAQs:

  • What is Business Insurance?

Coverage Types

Policies Available for Contractor Insurance:

  • General liability insurance
  • Workers compensation insurance

Benefits:

  • It can protect your business from certain claims.
  • It can cover damages caused by your negligence.
  • Proof of insurance can help customers feel good about your work.
  • It may be legally required where you’re located.

Contractors installing a house

What Type of Insurance Do I Need as a Home Improvement Contractor?

Home improvement contractor insurance can be made up of several different policies that provide comprehensive coverage for home improvement contractors like you. This coverage is designed to protect you from the biggest risks you face in your line of work, such as property damage and injuries to third parties (more on this in a bit).

Here are the policies that typically make up a home improvement contractor insurance plan.

General Liability Insurance for Home Improvement Contractors

General liability insurance — also known as commercial general liability (CGL) insurance — is an essential policy that covers your home improvement contractor business from claims of third-party damages and accidents that you or an employee may have caused.

Having this type of coverage is highly recommended for contractors because they’re more likely to be exposed to expensive property damage claims. For example, let’s say one of your employees is helping you with a bathroom remodel. Unbeknownst to you, he doesn’t properly caulk and seal the bathtub.

When the client uses the tub, water leaks through the floor to the room below, which causes significant damage to the bathroom floor and the ceiling underneath it.

If this happens to you and you carry general liability insurance, your policy could cover some or all of the resulting repair bills.

GL insurance isn’t just essential for protection; it also may be required to get your contractor’s license. This license can help you keep on the right side of the law, as well as provide customers with much-needed reassurance that they’re covered in the event your business causes any accidental damage or injuries to them or their property.

Your state may ask for proof of a general liability insurance policy in order to get approved for a contractor’s license. You can learn more about the process with our helpful state-by-state guide on how to get a contractor’s license.

General liability insurance can usually cover:

  • Bodily injury to another person (e.g., a customer)
  • Third-party property damage
  • Personal and advertising injury
  • Medical expenses
  • And more

General liability insurance doesn’t cover:

  • Damage to your own property
  • Professional services
  • Workers compensation or injury to your employees
  • Damage to your work
  • Motor vehicles while in business use
  • Expected or intentional injury or damage
  • And more

Workers Compensation Insurance

When you hire your first employee, you may need to get workers compensation insurance. If an employee gets hurt or sick on the job, this coverage can protect your business by paying some or all of their lost wages, medical bills, and legal costs.

This coverage also can prevent an employee from suing your home improvement contractor business for their workplace injuries.

In addition to carrying general liability insurance, you may need to show proof of a workers compensation insurance policy if you are a licensed contractor with employees. Each state has different requirements regarding the types of insurance policies licensed contractors need to carry, so check out our state-by-state guide if you have any questions about what may be required in your state.

Workers compensation insurance usually covers:

  • Medical payments
  • Lost wages
  • Rehabilitation expenses
  • Death benefits

Contractor installing tiles in a bathroom

Why Should I Get Insurance for My Home Improvement Contractor Business?

If you’re just starting out as a home improvement contractor, you may not be 100% convinced that you need insurance right away. Maybe you’ve decided to spend money on tools and marketing now, and you’ll pick up a policy later when you have a few projects under your belt.

Or maybe you’re doing home renovations on the side, and you don’t think you need insurance because you don’t do it full time. You may even think that you don’t have to carry insurance if you don’t have any employees.

Regardless of the reasons why you’re not sure if you need contractor insurance, consider this: You’re never too small to be sued like a big business.

Here’s what we mean by that: Whether you’re a self-employed contractor or own a home renovation business with employees, you’re still exposed to the same risks and liabilities, like:

  • Accidents
  • Property damage
  • Negligence
  • Injuries
  • And more

Let’s narrow down on property damage. There’s a 40% likelihood that your business will experience a property or general liability claim within the next 10 years. Unless you carry home improvement contractor insurance, that financial loss could come directly out of your own pocket.

That cost doesn’t include attorney fees if a customer takes you to court over a property damage claim. This scenario could happen, with an estimated 43% of small business owners — like contractors — experiencing lawsuits or being threatened with litigation.

Speaking of customers, contractors should carry insurance to protect themselves against customer injury claims, which are among the most costly and common claims brought against small businesses.

In fact, the average customer injury and damage case can cost a small business owner $30,000, while a customer slip-and-fall claim averages $20,000.

That’s just protection against financial losses. Home improvement contractor insurance also can:

  • Make it easier to get your contractor’s license
  • Meet your state’s requirements
  • Make customers feel better about working with you
  • Help you rent a workspace, as landlords may require it

Given all the advantages of carrying contractor business insurance, maybe the better question would be: Why wouldn’t you want to have it?

Question marks

Home Improvement Contractor Insurance FAQs

Finding home improvement contractor insurance can be confusing, which is why we’re here to help. Check out our answers to the most frequently asked questions regarding finding and buying contractor insurance.

  • It depends on your state of residence, as well as the city where your business is located. However, even if your state doesn’t require you to have business insurance, there are several reasons you should carry it:

    • Home improvement contractor insurance prevents you from using your own money to pay for property damage and accidents.
    • It can cover legal costs if your business is sued.
    • Customers may not want to hire you unless you have insurance coverage.
    • It can help you get approved for a business license.

    Is home improvement contractor insurance tax-deductible? In general, you can deduct your insurance premiums when filing your business’s income taxes. If you have any additional questions about tax deductions, we recommend you talk to an accountant.

  • The amount of insurance you may need typically depends on a number of factors, including:

    • The size of your business
    • Your business’s location
    • Your annual revenue
    • And more

    Our quote form can make the process of getting coverage surprisingly easy by letting you compare policies from multiple carriers, when available.

  • If you want to make finding coverage a lot faster — we’re talking under 10 minutes! — we recommend having the following information on hand:

    • Annual revenue estimates
    • Payroll estimates
    • Information on any previous claims

    Does home improvement contractor insurance differ by state?

    Contractor insurance requirements vary, depending on the state where your business operates. That’s why, depending on your location and business needs, our quote process will let you compare policies that can help you meet those state-based requirements.

  • Home improvement contractor insurance can be customized to provide protection against the risks you most often face while running your business. For example, a bundled plan that contains general liability and workers compensation may cover:

    • Bodily injury
    • Accidents and damages
    • Employee injuries
    • Unintentional mistakes
    • And more

    So whether you need just general liability insurance to give your customers’ peace of mind or you want to insure your tools and equipment, Simply Business can easily add these policies to your home improvement contractor insurance coverage.

  • While there’s no one pat answer, the final price of your home improvement contractor insurance is usually determined by:

    • Your payroll (the number of employees you have)
    • Locations you serve
    • Services offered
    • Annual revenue estimates
    • And more

    Want to see how much your home improvement contractor insurance will cost? Just answer a few questions about your business to start comparing affordable plans from the nation’s top insurers!

  • If you perform other services outside of home improvement and renovations, our licensed agents can help you find insurance plans that can cover all facets of your business.

Contractor installing kitchen

Why Choose Simply Business?

Simply Business is an online business insurance brokerage that lets you compare and buy policies from top insurers. We have over a decade of experience in making business insurance clear and simple for our customers.

We pride ourselves on making business insurance:

  • Fast and Affordable: You have better things to focus on, like running your business. Our policies are fast, affordable, and ready when you are.

  • Tailored to You: Forget one-size-fits-all insurance. Get the protection your business needs, when you need it most.

  • Flexible with Coverage: Whether you need increased coverage for the busy season or a policy for a large project, Simply Business can help.

After all, you’ve worked hard to grow your home improvement contracting business. That’s why we offer the best coverage to protect it.

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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.

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*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated reinsurance carrier by A.M. Best. Harborway Insurance is a trade name of Simply Business, Inc., which is a licensed insurance producer in all 50 states and the District of Columbia.

© Copyright 2020 Simply Business. All Rights Reserved. Simply Business, Inc. is a licensed insurance producer in all U.S. States and the District of Columbia. Simply Business has its registered office at Simply Business, 1 Beacon Street, 15th Floor, Boston, MA, 02108. In the state of California, we operate under the name Simply Business Insurance Agency, Inc., License #0M20593. In the state of New York we operate under the name Simply Business Insurance Agency. In the state of Texas we operate under the name, U.S. Simply Business, Inc. For more information, please refer to our Privacy Policy and Terms & Conditions.