General liability insurance for independent contractors typically costs $29 a month or $344 a year. Independent contractors typically pay $42 monthly or $500 yearly for business owner’s policy (BOP) commercial property insurance.
What Is General Contractor Insurance?
As a contractor, you may be subject to certain hazards due to the tasks necessary to complete projects by the deadline. Your job has the potential to harm third parties and damage property due to the usage of potentially hazardous equipment and operating in diverse residences and businesses.
Insurance is necessary to protect against these risks and can assist in covering court fees and damages. Your company, assets, and personnel are covered by general contractor insurance in the event of unanticipated loss or responsibility.
What Does General Contractor Insurance Cover?
Common general liabilities covered by basic contractor insurance plans include:
Bodily harm: An injury to an employee, client, or third party sustained while performing services at your place of business or on a client’s property. Example: While you are working, a client trips over some equipment.
Medical payments: Costs for treatment related to injury claims. An illustration would be a customer who needs surgery as a consequence of an accident that happened while you were working on a property.
Property damage: Harm done to your client’s or another party’s property while you are providing service. For instance, damaging the floor when repairing cabinets.
Advertising Liability: If a business or third party suffers financial damages as a result of a false advertisement, you can be sued for libel, slander, or defamation. Example: Making a false statement about a competitor in a commercial.
General liability insurance costs for independent contractors
General liability insurance for independent contractors typically costs $29 a month or $344 a year. Independent contractors typically pay $42 monthly or $500 yearly for business owner’s policy (BOP) commercial property insurance.
If someone files a lawsuit against you for personal harm, property damage, or defamation, general liability insurance will pay for your defense. If you visit customers’ workplaces, use their equipment, or are active on social media, you should think about this policy. Customers may request to see a certificate of insurance demonstrating this coverage.
90% of independent contractors spend under $50 per month, or $600 annually, on business general liability insurance. Your premium will increase as your chance of being sued increases.
How does your business type affect general liability insurance costs?
Businesses like roofers that run a larger risk of client injuries or property damage would often pay more for general liability insurance than a locksmith who runs a smaller risk. Your premium will be impacted by the location, years in operation, building upkeep, and size of your company.
The average cost of a roofer per year is $3,590, but the average cost of a locksmith per year is $406, or less than $35 per month. As you can see, prices may differ greatly amongst occupations.
How does your business size affect general liability insurance costs?
48% of construction companies and contractors that get general liability insurance via Insureon pay between $600 and $1,200 annually, while 24% spend less than $600. Larger companies with a high volume of client interaction might anticipate paying more for this insurance.
FAQ
How can I reduce my general contractor insurance premiums?
Bundling insurance is an option. By combining your numerous coverage requirements, your insurance provider could provide cheaper prices.
Do I need commercial auto insurance?
Commercial auto insurance is required for all company-owned automobiles. Additionally, the majority of commercial uses of your personal car are not covered by personal auto insurance.
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