Independent Contractor Liability Insurance, General Liability vs Professional Liability Insurance, General Liability Insurance for Contractors. To protect your property, we offer Business Personal Property coverage as a part of a Business Owners Policy. Certain Progressive companies may be compensated as licensed agencies for performing services on behalf of these insurers. The Top 10 Types of Insurance Claims Filed by Small Businesses, How to Get Insurance for Your Small Business: Smart Tips for Better Coverage, What Is Small Business Insurance? for more details. And, at any given point, one or several of these people could claim that your business has caused them bodily injury or property damage and initiate legal recourse. Don't let a liability claim derail the plans and aspirations you have for your business. More and more contractors clients are requiring proof of a contractors General Liability Insurance coverage. The audit questions are similar to the application and may go into depth in areas where the insurance company discovers a discrepancy between current operations vs. the original application. A claim typically may be reported up to ten years following the policy period on an occurrence policy. General contractors, carpenters, roofers and other construction workers should carry, Heres what you need to know about general liability insurance for contractors and construction businesses, as well as how to find the right, Are you a contractor outside the construction industry? Other policies to consider include: Workers compensation insurance: Almost every state requires this coverage for construction businesses with employees. A single accident could result in a lawsuit that you might not be able to handle. All financial products, shopping products and services are presented without warranty. However, you're still exposed to liability risks from your job. Surety bonds: These bonds reimburse your clients for financial losses if your company is unable to fulfill the terms of its contract. Certain contractor licenses may require a $12,500 Bond of Qualifying Individual, a $100,000 LLC Employee/Worker Bond, or a Disciplinary Bond depending on their license status. For this reason, we advise all contractors to carry $2 million in aggregate coverage. If a visitor is injured at your jobsite or property damage occurs during a renovation, for instance, general liability insurance can cover medical bills or the cost of repairs. If the person sues, you could end up paying for medical and legal expenses. Travelers and The Travelers Umbrella are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. 2022 The Travelers Indemnity Company. Construction insurance for 3 common contractor claims, Common questions about certificates of insurance, Defamation, both libel (written) and slander (spoken), Make less than $1 million in annual revenue. Can Progressive help me get general liability insurance in my state? Additional underwriting criteria that may or may not be utilized includes credit score, policy age, experience and number of years the insured has not made any claims. The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. Here is a list of our partners. Accidents can be costly for builders and contractors. Without general liability insurance, you could be solely responsible for all the medical bills and legal fees. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts. This site uses cookies. General Liability insurance from Progressive Commercial includes a variety of coverages that can protect you from claims against your business. In addition to general liability insurance, businesses may need to invest in commercial auto insurance, commercial property insurance, workers compensation and business income insurance to keep them protected from risk. Debris removal businesses, snow and ice removal businesses, tree service businesses, interior and exterior construction businesses. Send us your receipts, photos, invoices and more with just a push of a button. On a daily basis, your company touches the lives of many people, including contractors, clients, customers and the general public. Without commercial general liability insurance, you would be liable to pay those expenses with your own business or personal assets. Some contractors clientele want to be named on the policy as an Additional Insured. General liability insurance covers: This policy does not cover employee injuries. The claims process starts with an occurrence that must happen during the policy period. The occurrence will trigger a claim against the contractor which may be reported to the insurance carrier by the insured contractor or the aggrieved party. If a client sues your general contracting company for missing the deadline on a construction project, your professional liability policy would cover legal and settlement costs. A Complete Guide to Insurance for Startups, What Is Commercial General Liability Insurance? When getting general liability insurance for a contracting or construction business, NerdWallet recommends getting quotes from multiple providers. General liability insurance (GL), often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. For example, if you own a construction firm, your premiums will likely be higher than those of an IT consultant with a home office. Complete Insureon's online application and contact one of our licensed insurance professionals to obtain advice for your specific business insurance needs. General liability insurance helps cover the costs associated with a claim against your business. All small businesses should invest in general liability insurance, including companies working in the following industries: Save Time Billing and Get Paid 2x Faster With FreshBooks. The Excess policy will cover damages above the base General Liability policys max limits. Our partners cannot pay us to guarantee favorable reviews of their products or services. Work with our lending specialists to get smart answers to all your small business questions. Submit claims, check status of disability or leave, and see payments. Bodily injury and property damage liability. The amount of general liability coverage your business needs depends on factors like your companys goals and contractual requirements. California Contractors Insurance Services. A contractor may owe or be owed premium based on any material changes discovered during the audit from the application responses. The insurance company conducts a premium audit to account for these changes. Best of all, its completely free. Do you know how these changes pose new safety threats and liabilities for your business? A commercial general liability insurance policy accounts for your business being at fault for bodily injury, property damage, personal or advertising injury. The cost of a policy is based upon the contractors classification, payroll, subcontractor costs, gross receipts and location. There are many additional coverages, deductibles, fees, taxes and exclusions that can be added to a policy which can affect the premium rate. Travelers helps you prepare and protect against these types of risks with our wide range of general and business liability insurance solutions. Manage my business policy, bills and claims, get certificates and submit audits. By continuing to browse the site you are agreeing to our use of cookies. All rights reserved. Typically the variance in price is only around $15.00. $15,000 California Contractors License Bond, Contractor General Liability Insurance Policy, California Contractor Workers' Compensation Insurance. The foundation of small business liability protection. General liability insurance for today's unique risks. Copyright 1995 - 2022. When a contractor applies for Contractor General Liability Insurance, they are expected to accurately complete the application to the best of the contractor's knowledge including providing projected information for the upcoming policy term . Travelers commercial general liability business insurance covers a variety of claims for damages that can result from: If it's possible that someone could claim bodily injury or property damage due to your business operations, your employees' actions or your services or products, you should have general liability insurance. Contractor General Liability Insurance is often required by a contractors client (commercial, residential or a General Contractor ifworking as a sub-contractor) to ensure the financial capacity to pay is available in the event of a claim. Discover more about general liability insurance cost, policy rating factors and money-saving tips to help you find the best combination between price and protection for your business. You may lease space and your lease contract may stipulate that you retain general liability coverage while you are a tenant. Find protection specific to your industry. All licensed California contractors are required to carry a $15,000 contractor license bond. According to a survey by Insureon, the average annual cost for commercial general liability insurance is $741. It typically pays for accidents and damages related to theft, weather, and vandalism. With the current reality of more employees working from home through the pandemic, is your business ready for all the implications? California Contractors Insurance Services provides all contractors a Certificate of Insurance upon purchase of the policy that can be used as proof of insurance. The insurance company has a duty to defend the insured contractor but has discretion to settle any suit. Coverage applies to claims including bodily injury, property damage, product and completed operations, medical payments and personal and advertising injury. The information provided on this website does not constitute insurance advice. An occurrence may be discovered while the work is done or long after work has completed. *Prices shown are for a one year term and based on several factors including, but not limited to, classification, payroll, subcontractor costs, gross receipts and location. Your cost for general liability insurance can be influenced by a number of other things, including: Learn more about commercial general liability insurance with the information below orfind an agent for a commercial general liability insurance quote. Some insurance companies offer add-ons for general liability policies. General liability insurance covers common business risks like customer injury, customer property damage, and advertising injury. Are you ready to safeguard your construction or contracting business with general liability insurance? Some employers or clients might also require you to carry a certain amount of general liability before you can work for them. General liability insurance for contractors can protect you from third-party claims of bodily injury or property damage as a result of business activity. This coverage insures against property damage or bodily harm from your products or clinical trials; economic loss from your products or work caused by error, omission or negligence; and unauthorized access or use of personal identity information or protected health information. There are two types of general liability insurance based on what claims are covered: occurrence and claims-made. General liability insurance safeguards small businesses when client property is damaged. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. As a small business owner, you run the risk of a person or another business claiming you, your product or your employees caused them injury or damage and initiating a lawsuit for damages. A certificate of insurance (COI) is an official document that lists all coverages and limits on an insurance policy. General liability only provides coverage for claims against you by others for their bodily injuries or damage to their property. Construction and Contracting Business Insurance. The injured person doesnt need to file a lawsuit to collect compensation for their medical expenses, you just need to file a claim. No. Occurrence is defined as an accident, including continuous or repeated exposure to substantially the same general harmful conditions. Also, the contractor risks the insurance company canceling the policy and denying coverage of a claim if the contractor fails to pay additional premium when required. Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc.: Licenses, NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer AccessLicenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, General Liability Insurance for Contractors: Coverage, Cost, Providers. Coverages also include property damage protection, which pays for any damage caused to other peoples property while youre on the job, and product claim protection, covering you in case your products cause illness or physical harm. Say a customer slips on your floor and breaks a wrist, or an employee causes damage while working in a customer's home, or one of your products injures somebody or damages their property. Many or all of the products featured here are from our partners who compensate us. Certain coverages vary by state and may not be available to all businesses. Contractors General Liability Insurance protects contractors financially from amounts they become obligated to pay due to damages or medical payments because of bodily injury, property damage or personal/advertising injury to third parties occurring during the policy period caused by or relating to the contractors work. Many businesses can benefit from both coverages. MedFirst offers protection against the special risks associated with doing business as a medical technology company. The best way to get a sense of how much a policy will cost is to get a customized, Where to get general liability insurance for contractors. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. Theres coverage for personal and advertising injury as well, which protects you in claims involving slander, libel or copyright infringement. There are certain instances where your business is legally required to have general liability insurance. How much does construction business insurance cost? Co. & affiliates. This may influence which products we write about and where and how the product appears on a page. Travelers offers small business solutions to help you protect and grow your business. The cost for a Contractor General Liability policy typically ranges from $796 to $1,230. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Business Owners, General Liability, Professional Liability and Workers' Compensation policies are underwritten by insurers that are affiliated with Progressive and with unaffiliated insurers. The modern office can now mean workers contributing from remote locations, increased use of mobile technology and environmental changes like having pets in the office. Get the personal service and attention that an agent provides. This policy can also cover the cost of a lawsuit if a client decides to take you to court over damaged property. Even when it's not required, it's a wise investment as health insurance plans may deny claims for work-related injuries. All content and materials are for general informational purposes only. However, this does not influence our evaluations. What types of business insurance do I need? Blanket Additional Insured Coverage extends your existing liability insurance to other entities as required by some contracts with employers. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. listed in the. If a claim is made, the contractor is responsible for paying the deductible, and the insurance company will cover the balance of damages and/or medical payments up to the policy limits. DISCLAIMER: Progressive Casualty Ins. You can unsubscribe at any time by contacting us at help@freshbooks.com. You might be eligible to get general liability insurance, without the extra coverages in a BOP, through the Progressive Advantage Business Program. Other reasons why small businesses need commercial general liability insurance include: Travelers offers commercial general liability protection for many types of small businesses. (DESCRIPTION)Text, Visit travelers dot com. Copyright 2018 The Travelers Indemnity Company. Commercial general liability insurance provides businesses with comprehensive coverage for personal injury, property damage and advertising injury caused by your companys business operations, products, or employees. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature. This type of coverage protects your business from liability claims related to specific legal offenses, such as: General liability insurance includes coverage for medical payments when someone other than an employee is injured on your businesss premises. This information may be different than what you see when you visit a financial institution, service provider or specific products site. How to Protect Your Business from Financial Loss, Use of another companys intellectual property, The condition of your business property and buildings, Your industry and type of business operations, The number of years youve been in business, Professional services, including accountants, lawyers, doctors and therapists. If you need to protect things like personal property used for your business, or commercial buildings such as garages or storage facilities, you might require the additional protections provided in a BOP. Insurance costs for construction and contracting professionals are based on a few factors, including: While general liability insurance covers basic construction and contracting risks, it does not offer absolute protection. Just make sure your deductible is an amount your business is able to cover if the need arises. Does general liability insurance cover theft? No, but failing to carry general liability insurance could result in you having to pay for all the expenses related to a claim against your business. Since general liability premiums are considered a cost of doing business, they usually can be written-off at tax time. Necessary cookies will remain enabled to provide core functionality such as security, network management, and accessibility. If you are financing a building or equipment, your lender may require GL coverage. E&S insurance provides coverage for businesses the standard market doesnt protect. General Liability vs Professional Liability, Benefits of Commercial General Liability Insurance. It is a best practice to have an occurrence policy with the ten year tail for claim reporting. Professional liability insurance coverage, on the other hand, protects businesses and individuals against claims made by clients for wrongful acts resulting in economic damage. This means general liability wont cover your property or equipment against theft or damage. Does general liability insurance have a deductible? and other countries. This will allow you to compare coverage details, cost, policy limits, customer reviews and more. If you're like a lot of small business owners, you're not left with a lot of time to think about the what-ifs. Progressive Advantage Agency, Inc. attempts to quote each applicant contacting us for a quote with at least one of these insurers. Two weeks later, the homeowner discovers the sink has leaked and damaged their expensive kitchen floor. General liability insurance helps pay expenses related to third-party injuries and property damage. If the windows of a house that your company is building are broken during a windstorm, builders risk insurance can cover the cost to replace them. (SPEECH)But the truth is, things happen and things can go wrong. Your contract may stipulate that you provide a. Railroad protective liability coverage protects contractors who work on or around railroad tracks and property. Rates do not constitute an offer of coverage and are subject to change at any time. Commercial general liability insurance costs will vary depending upon your industry and the terms of your policy. How a builders risk insurance policy can protect your business.