How Much Does General Contractor Insurance Cost?
If you are a general contractor or subcontractor, you’ll be required to carry general contractor insurance. This insurance is an important part of your business, not only because it protects you from liabilities but also because many building owners, including building departments, require it. While it is an expensive policy, it will give you peace of mind when you need it most. General contractor insurance costs on average about $90 per month, but the actual amount may vary based on location and the type of work you do.
The cost of insurance for contractors varies according to what they choose. The higher the coverage limits, the higher the premiums. A higher limit would be $650/year for three million dollars, while a five million-dollar policy would cost $850/year. General contractor insurance is required by law in Ontario, and protects a contractor from financial losses due to accidents and damages caused to a third party. When you’re planning to purchase general liability insurance for your business, make sure to get a quote from different insurers.
Insurers should also consider worker’s compensation insurance, which is mandatory in nearly every state. This type of insurance pays for medical costs, legal fees, and lost wages for employees injured on the job. Workers’ compensation insurance can cost anywhere from $250 to $300 per month, and it will depend on the number of employees and the risks associated with accidents. It is worth considering whether or not you should invest in this type of insurance before you start work.
General liability insurance is necessary for contractors, and you’ll pay hundreds of dollars to get this coverage. The money you spend is worth the peace of mind that it gives you. Your clients will be more likely to hire you if you have proof of insurance. General liability insurance will also cover the costs of attorney fees, up to the policy limit. In addition, general liability insurance will protect your business from the financial loss caused by a lawsuit.
When buying APOLLO general contractor insurance, you’ll find several types of policies available. One is called Product and Completed Operations Insurance, and it covers Property Damage and Bodily Injury in the course of a project. The other is called Medical Payments Insurance, and it covers your medical expenses in case of bodily injury or property damage that happened during the project. The limit of this coverage is typically $5,000. Personal and advertising injury insurance covers injuries caused by wrongful eviction, false arrest, or copyright infringement. It also covers privacy violations and slanders.
Whether you choose to pay for commercial auto insurance or not depends on your individual needs and the level of coverage that you need. Some states require contractors to carry workers compensation insurance, which covers medical expenses, lost wages, and other benefits in the event of an accident. Some clients will require fidelity bond coverage, which protects them from dishonest employees. In addition to these policies, contractors must also have commercial auto insurance, because personal auto insurance will not cover the expenses of using their vehicles on the job.
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