For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
Demolition is sometimes required before construction can begin. The demolition process can pose multiple hazards to neighboring structures and people. Thus if you are a contractor, you need to have demolition contractor insurance to protect your business from financial losses. This guide will talk about the inclusions, policy limits, and more.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
During the demolition process, accidents may happen. These accidents can cause injuries to your employees or other people. They can also damage surrounding property. Since demolition is classified as a very hazardous process, you need to have general liability insurance that will cover the following incidents:
Property damage
Bodily injury
Medical expenses
Advertising injuries
Most insurance providers will offer your business a coverage limit of up to $2,000,000. You need to assess your risks and discuss with your insurance provider the best coverage limit for your business needs.
Most insurers will offer additional coverage options for a more comprehensive cover. If you want to insure specific risks that the standard general liability does not cover, you can include the following add-ons:
Contractor equipment coverage—Covers damage or loss of tools and equipment used in the demolition process
Cyber liability coverage—Protects you against data breaches and cyber attacks that may compromise sensitive information
Pollution liability coverage—Covers damages caused by pollution or contamination resulting from the demolition process
Most insurance providers will even cover subcontractors in the demolition insurance policy. But discussing with your insurer and learning more about their policy is always important.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
The process requires a contractor to make intelligent decisions to avoid harming people and destroying properties. But errors and omissions may happen, leading to accidents. For demolition contractors, professional liability insurance will cover damages resulting from errors or omissions. This type of demolition liability insurance can help in the following incidents:
A contractor may fail to inspect the building properly before starting demolition; the negligence can result in property damages. The insurance will cover the costs of repairs
A contractor may make an error when demolishing a building, leading to bystander injuries
The coverage limits will vary depending on your business. Most insurance providers will offer you a coverage of $100,000-$1,000,000.
This demolition insurance policy is not compulsory. But you will pay high legal fees and settlements if a customer sues you for negligence or errors. Thus, it is essential to be vigilant and cushion your business from such losses.
When demolishing buildings, you can cause harm to bystanders or other members of the public. You can also damage nearby buildings. This is where public liability insurance for demolition contractors comes in. The insurance will cover all damages to third-parties. Some of the situations where public liability insurance may be helpful include:
Debris from your demolition site damages nearby vehicles or buildings
Bystanders or pedestrians are injured by falling debris
Your demolition work damages surrounding utility lines, damaging third-party properties
This type of demolition liability insurance will cover settlements, damages, and legal fees. It safeguards your business from potential financial losses.
The coverage limits range from $100,000-$1,000,000. Higher limits are available if you talk with the insurance company
Since your business is exposed to multiple risks, you must have a comprehensive cover. Including add-ons on public liability insurance will offer your business extra protection. Some of the common add-ons include:
Pollution liability insurance—Covers damages resulting from environmental pollution caused by your business activities
Contractor's all-risk insurance—Covers damages to construction sites, materials, and equipment caused by natural disasters or accidents
No, the insurance is not compulsory. But it would be best if you had it to protect your business from unexpected events.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
Commercial property insurance will cover every piece of equipment you require for demolition. The insurance will cover the repair and replacement costs of your buildings, vehicles, machinery, tools, inventory, and equipment. It will cover all your assets from unforeseen events such as:
Theft
Vandalism
Fire
Natural disasters
The coverage limit for commercial property insurance can range from $100,000-$1,000,000. These amounts can be higher depending on the size of your business and covered risks.
For a more comprehensive cover, include the following add-ons:
Flood insurance—Covers you the damages caused by floods, which are typically excluded from standard commercial property insurance policies
Earthquake insurance—Covers damages resulting from earthquakes, which may not be covered by standard policies
Inland marine insurance—Covers movable or transportable property, such as equipment and goods in transit
Yes, commercial property insurance can cover theft or vandalism of equipment or tools owned by the business.
| CoverWallet | Thimble (Best) | NEXT | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $2,000,000 | $2,000,000 | $300,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $500,000 | $260,000 | $25,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
The business owner’s policy (BOP) has two policies, commercial property insurance and general liability insurance. Since it is a combination, it will cover all risks contained in each policy. It will cover the following:
Property damage
Bodily injury
Advertising damages
Damage to business properties
Damage to inventory
The coverage limit for the general liability coverage is $1 million-$2 million. On the other hand, the coverage limit for property coverage is $1 million-$5 million.
Some common add-ons on the BOP include:
Customer property coverage—This covers liabilities for any damaged sustained by a customer’s property that’s under your care, custody, and control
Employment practices liability insurance—Protects employers from claims of discrimination, harassment, or unlawful termination by employees or job applicants
A BOP includes general liability insurance and property insurance in a single policy, whereas general liability insurance only covers liability risks.
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
When operating a demolition business, you need various tools and equipment. These tools and equipment are integral to your business and can get damaged or stolen. The tools and equipment insurance will cover the repair and replacement costs. The policy covers the following perils:
Theft
Vandalism
Natural disasters
Fire
The coverage limit depends on the market value of your tools and equipment. The insurance company will offer total replacement and repair costs depending on the value of your items.
If you feel the insurance policy does not comprehensively cover all perils, you can include additional coverage such as:
Coverage for high-value equipment
Coverage for leased equipment
Not necessarily. Reviewing the policy carefully is essential to ensure that all essential tools and equipment are covered.
As a demolition business, you need vehicles to carry your equipment. You can also use the vehicles for other purposes. Commercial auto insurance in the event your business vehicles get in an accident. This insurance policy covers all vehicles transporting debris and equipment to and from the job site. Some of the components of the insurance include:
Liability coverage—Covers the medical expenses of third parties that your commercial auto injured in a vehicular accident
Collision coverage—Covers repair costs if your commercial auto crashed into another vehicle or an object
Comprehensive coverage—Covers repair expenses if your commercial auto got damaged due to fire, theft, vandalism, collision, and other covered perils
Uninsured or underinsured motorist coverage—Grants coverage if you get involved in an accident and the driver at fault can’t pay damages because he or she is uninsured or underinsured
Personal injury protection (PIP) coverage—Covers the medical expenses of the passengers if your commercial gets involved in an auto accident
Hired or non-owned auto coverage—Covers the cost of accidents caused by a vehicle you hired or borrowed for business purposes
Rental reimbursement coverage—Reimburses the extra expenses you incurred after hiring a commercial auto because the one you own is at the shop
The commercial auto insurance coverage limit can be $2,000,000 or higher. Your insurer will provide you with their specified limit. You need to select one that can cover your business from potential risks.
The insurance will cover all types of business vehicles. They can include trucks, vans, trailers, or cars.
If you use vehicles for business, you will need commercial auto insurance to protect your business and assets.
Workers' compensation insurance covers your employees in case of workplace illness or injury. This insurance will cover medical expenses and wage loss. It can also cover disability benefits and death benefits. For instance, if an employee is injured while demolishing a building, the insurance will cover all of the resulting expenses.
Some common add-ons or endorsements to worker’s compensation insurance for demolition contractors may include:
Employer’s liability coverage—Provides your businesses with additional protection against lawsuits filed by employees who endure work-related injuries or illnesses
Occupational accident insurance—Covers injuries or disabilities resulting from on-the-job accidents that may not be covered by worker's compensation
Umbrella insurance offers extra coverage beyond what other liability insurance policies will offer. It will cover claims exceeding your general liability or auto insurance limits. This policy is essential for covering large claims. It can also cover multiple claims, which may put you over the policy limit.
Debris and cleanup insurance will pay for cleaning and removing debris from your insured property. For instance, if your insured business building is destroyed by a storm that leaves behind debris, the insurance will cover the cleaning costs.
Your insurer can compensate you from $10,000-$1,000,000. The limit will depend on how much debris needs to be cleaned up.
Yes, you can include this insurance as an add-on. You can combine it with other covers such as property or general liability insurance.
Yes, the insurance policy will also cover environmental cleanup costs. But you need to discuss with your provider if there exist any limitations to the cover.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $120 | $1,440 | $0-$500 |
| Professional liability insurance | $127 | $1,524 | $500-$1,000 |
| Commercial property insurance | $140 | $1,680 | $1,000-$2,000 |
| Business owner's policy | $160 | $1,920 | $1,500 |
| Tools and equipment insurance | $190 | $2,280 | $500-$1,000 |
| Commercial auto insurance | $125 | $1,500 | $500-$1,000 |
| Debris and cleanup insurance | $122 | $1,464 | $500-$1,000 |
| Umbrella insurance | $129 | $1,548 | $500-$1,000 |
| Workers comp insurance | $165 | $1,980 | $2,500-$5,000 |
The average demolition contractor insurance cost is $120 per month or $1,440 per year for a $1 million general liability coverage. Factors that affect the cost of premiums are business size, business history, experience, number of employees, revenues, policy limits, and deductibles. Here’s a table showing the cost of $1 million general liability insurance from the best demolition contractor insurance companies:
| Cost per Month | Cost per Year | Best For | |
|---|---|---|---|
| NEXT | $75 | $900 | Best overall; Fastest general liability insurance for demolition contractors |
| CoverWallet | $77 | $924 | Comparing demolition contractor insurance quotes online |
| The Hartford | $80 | $960 | Demolition contractors who want to work with a reliable, experienced insurance carrier |
| Tivly | $83 | $996 | Demolition contractors looking for affordable and customizable insurance coverage |
| Thimble | $90 | $1,080 | Demolition contractors who want insurance coverage for project-based work |
| Hiscox | $95 | $1,140 | Demolition contractor insurance with automatic policy renewal |
Get all the best quotes from leading providers in a click of a button!
Here are the reputable insurance providers that offers the best demolition contractor insurance deals. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for demolition contractors
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is an online insurance company offering small businesses the best insurance policies. To cover your demolition business from unexpected risks, ensure you access their policies on their website. Their demolition contractor insurance application process is easy online.
Best for: Best overall; Fastest general liability insurance for demolition contractors
Average cost: $75 per month
Our rating: 10/10
Easy-to-use virtual platform
Customizable policies
Great customer service
Not an insurance company but an insurance broker
CoverWallet is a reputable insurance broker. This company offers multiple insurance policies from many insurers. They have a resourceful tool that allows you to compare different insurance providers. This company will enable you to get the best insurance deals for your demolition business.
Best for: Comparing demolition contractor insurance quotes online
Average cost: $77 per month
Our rating: 10/10
Experienced underwriters
Customized coverage options
Multiple insurance policies
Limited add-ons
The Hartford is a well-established insurer who has been in the market for many years. They offer multiple policies to small businesses. Whether you want general liability, commercial property insurance, or commercial auto insurance, they got you covered. They have excellent financial stability, thus offering the best security for businesses.
Best for: Demolition contractors who want to work with a reliable, experienced insurance carrier
Average cost: $80 per month
Our rating: 10/10
Affordable rates
Great customer service
Easy-to-use virtual platform
No online quotes
This company offers insurance products for contractors. They have affordable prices and a virtual platform that is easy to navigate. If you are looking for the lowest premiums check on this company. Call now to compare quotes over the phone.
Best for: Demolition contractors looking for affordable and customizable insurance coverage
Average cost: $83 per month
Our rating: 10/10
Flexible coverage options
Numerous add-ons to general liability insurance
Easy-to-navigate website
You can’t reach customer service by calling
Thimble is an insurance company that offers on-demand policies. You can get short-term or long-term insurance coverage. Their online platform makes it easy to apply and make claims. Moreover, this company’s liability coverages can be customized with add-ons such as HNOA coverage and customer property coverage.
Best for: Demolition contractors who want insurance coverage for project-based work
Average cost: $90 per month
Our rating: 10/10
24/7 claims filing
Easy customization of policies
14-day refund
Worldwide coverage
Online quoting not available all the time due to periodic site maintenance
Hiscox is a renowned and established company that offers multiple policies. They offer coverage for many businesses, including demolition contractors. With their experienced underwriters, you can find a policy that cushions your business from financial losses.
Best for: Demolition contractor insurance with automatic policy renewal
Average cost: $95 per month
Our rating: 9/10
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow
Very good experience
Terrific experience with their construction business insurance! 10/10! Thank you!
Not all those who wander are lost.
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