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Accidents can happen on the construction site that results in bodily injuries or property damage to third parties and employees. Materials and equipment can also get lost or damaged.
Given the risk you are exposed to,you need general contractor insurance coverage, which comes in two types. This article will guide you on the cost of general contractors, the various policies and the various companies offering the policy.
General contractor insurance coverage cost $50 per month or $600 per year for a $1 million general liability policy.
Here’s a table that shows the cost of insurance policies that most general contractors purchase.
| Cost per Month | Cost per Year | Deductible | |
| General liability insurance | $50 | $600 | $0-$500 |
| Errors and omissions insurance | $70 | $840 | $500-$1,000 |
| Workers compensation insurance | $92 | $1,104 | $2,000-$5,000 |
| Commercial property insurance | $55 | $660 | $1,000-$2,000 |
| Commercial auto insurance | $65 | $780 | $500-$1,500 |
Similar to paving contractors, plastering contractors, and flooring contractors, you also need general liability insurance. General liability for general contractors grants a shield against the financial punches due to third-party property damage, bodily injury, and legal action.
A general contractor’s liability insurance takes care of these costs if a claim for bodily injury or property damage is filed:
| CoverWallet | NEXT (Best) | Thimble | |
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $1,000,000 | $100,000 | $5,000 |
| Waiver of subrogation included? | Yes | No | Included |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded |
| Equipment breakdown floater included? | No | Yes | Yes |
| Can you get a certificate of insurance online? | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 |
Your clients can sue and hold you liable for negligence, mistakes, and omissions. You can also be responsible if these are committed by EIFS contractors and other contractors you hired.
Claims filed because there are issues with your services aren’t covered by general liability insurance. And so, you must get another general contractor insurance coverage-errors and omissions insurance.
| CoverWallet (Best) | NEXT | Thimble | |
| Per occurrence limit | $1,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Name additional insureds? | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | No |
| Deductible | $500 | $500 | $500 |
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Your office and warehouse can get damaged or destroyed. Commercial property insurance recovers losses quickly without any interruptions.
This compensate your financial losses if the office or warehouse gets damaged or destroyed by:
The coverage of commercial property insurance for general contractors, plumbing contractors, and door installation contractors also applies to what’s inside the building too.
And so, this insurance will also compensate for the value of equipment, materials, and other valuables that got damaged or lost.
| CoverWallet | NEXT (Best) | Thimble | |
| Building coverage limit (minimum) | $50,000 | $310,000 | $25,000/$500,000 |
| Contents coverage limit (minimum) | $50,000 | $31,000 | $25,000/$500,000 |
| Outdoor signs | Excluded | $2,500 | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 |
| Money and securities | Excluded | $2,500 | $1,000 |
| Lock and keys | Excluded | $2,500 | Excluded |
| Business interruption floater | Excluded | Included | Included |
| Equipment breakdown floater | Excluded | Included | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 |
Tools and equipment insurance solely covers the equipment you use as a general contractor as well as the personal implements of employees.
Tools and equipment insurance for general contractors, electrical contractors, and masonry contractors covers the repair or replacement costs of drills, hammers, ladders, portable lights, lifters, and other tools and equipment that get damaged or lost because of:
| NEXT (Best) | Thimble | Travelers | |
| Aggregate limit | $5,000/$10,000 | $1,000/$5,000 | $15,000/$25,000 |
| Offered as an endorsement to general liability insurance? | Yes | Yes | No |
| Covers hired and borrowed equipment? | Yes | Yes | No |
| Miscellaneous equipment also covered? | Yes | No | No |
| Deductible | $500 | $500 | $1,000 |
Commercial auto insurance is important if you’re a general contractor who owns or hires flatbed trucks, dump trucks, and other vehicles to haul materials, transport debris, and take employees to different project locations.
You need commercial auto insurance for general contractors, fence installation contractors, and roofing contractors in case something happens to the vehicles you use for business operations.
| NEXT (Best) | Progressive | GEICO | |
| Auto liability bodily injury coverage aggregate limit (minimum) | $25,000 per injury$50,000 per accident | $25,000 per injury$50,000 per accident | $100,000/$300,000 CSL |
| Auto liability property damage aggregate limit (minimum) | $15,000 | $15,000 | $50,000 |
| Uninsured/underinsured motorist coverage limit | $25,000 per injury $50,000 per accident | $25,000 per injury $50,000 per accident | $100,000/$300,000 |
| Rental reimbursement coverage aggregate limit | $1,500 | $1,500 | $900 |
| Trailers can be added to commercial auto insurance? | Yes | Yes | Yes |
| Roadside assistance coverage included | Yes | Yes | No |
| Safe driving discounts included? | Yes | Yes | Yes |
General Contractor Workers Compensation Insurance
It’s a requirement in most states.Workers’ compensation insurance kicks in when a full-time or part-time employee sustains an occupational disease or injury. It will take care of these costs on your behalf:
Note that workers’ compensation for general contractors doesn’t apply to sub-contractors you hire for carpentry or drywall work.
Aside from the insurance policies we mentioned above, you might also need to get certain types of bonds. This is because some clients might require you to get both general contractor insurance coverage and bond for high-profile projects.
The most useful types of general contractor bond insurance are surety and fidelity bonds. A surety bond indemnifies the losses of a client in case you can’t finish or fail to finish a project. On the other hand, a fidelity bond reimburses the losses if your employee commits a crime.
General contractor bonded and insured find it easier to bid and close projects. There are also lesser problems with getting a license to commence projects.
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These are the best general contractor insurance companies. Read to know their pros, cons, and pricing for a $1 million general liability insurance.
NEXT is a one-stop shop for small general contracting businesses looking for:
All of the policies above are offered in NEXT’s deluxe general contractor insurance program. You get comprehensive coverage and a 10% discount by bundling different insurance policies.
The basic coverage only offers a general liability and errors and omissions insurance with a $1 million per occurrence and aggregate limit. Note that your general contractor insurance from NEXT is offered in partnership with Tivly.
Average cost: $42 per month
CoverWallet is an insurance broker that sells the general liability insurance, commercial auto, workers’ compensation, commercial property, and other business insurance policies of its partners for general contractors.
To get covered, you can use CoverWallet’s online quotes comparison tool which shows the rates and features of numerous insurance options. You can then decide to get covered online or talk with an agent over the phone.
Average cost: $44 per month
Tivly works with NEXT for its general contractor insurance coverage, which offers general liability, workers’ compensation, commercial auto, builders risk, and other policies. Progressive and GEICO might refer you to this company if they can’t provide coverage.
Average cost: $42 per month
You can get covered through its contractors’ insurance plan which consists of general liability and workers’ compensation insurance.
Thimble’s general liability insurance is available as a short-term and long-term coverage.
On the other hand, the short-term general liability insurance of Thimble provides basic coverage. However, what makes it great is that you can decide to get covered for only hours, weeks, days, or months.
Average cost: $48 per month
Since 1935, State Farm has been offering small businesses, including general contractors, affordable and customizable policies that promise to meet all your business needs.
This company offers the following:
Average cost: $50 per month
GEICO has evolved to be one of the largest insurance carriers. GEICO is perfect for policyholders looking to handle their own general contractor insurance coverage.
It is important to note that GEICO doesn’t underwrite a lot of its insurance products. Instead, it partnered with affiliated companies that provide coverage for clients.
Average cost: $52 per month
Progressive’s basic cover includes general liability coverage and commercial auto insurance. You can include additional coverage options, including:
Average cost: $55 per month
Travelers goes as far back as 1864 and has since acquired an A++ rating from AM Best. This company doesn’t issue a quote.
It’s because most of its insurance policies are highly specialized and include provisions that a representative has to explain for you to fully understand.
Average cost: $56 per month
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
9.4 / 10
Fastest ever online insurance quote and purchase! Also, great rates and professional customer reps that helps with whatever you need, if you need. Nice company!
2.8 / 10
Embroker sells a product that it doesn't honor. We purchased a combination D&O and EPLI policy. However, when it came to renewal, it told us that we only had D&O coverage even through our ACCORD certificate clearly mentions we have both. Basically they refused to honor the EPLI coverage and will leave you hanging with the bag. At time of renewal, they more than doubled our quote to get similar coverage. Basically BAIT & SWITCH. Unacceptable tactics. Easy to buy and pay but you may not be... Read More
2.8 / 10
Great platform. Terrible policy. There is no teeth behind it. No coverage. It's a fake policy that they sell. Sold us an EPLI policy that later we came to find out had no EPLI coverage. Amazing that they can get away with outright fraud. Check the positive reviews. They are all 'Anonymous' posted by Emroker staff. Stay away and find a real policy that will actually provide you coverage. We've been bitten by them and hope to find restitution via a lawsuit.
Paul Burns Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
It has been 70 days since I made a claim on the roof of my building. No one from the company will return calls. We are in hurricane season and located in Louisiana. My building is tarped to secure it.
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
John Murphy Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Worst insurance comapny I have ever dealt with. A commercial vehicle represented by GUARD t boned my wife and daughters family vehicle in the middle of the day. Driver was cited and insurance claim insued. Fast forward 4 months and refusal of full amount of claim is still happening. Driver was found guilty, repairs started on my vehicle and when it comes to the final bill and diminished value we cannot get any help. I am out a family car, have an injured and traumatized wife and children,... Read More
Harshadray Patel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Extremely bad service, when you call , will make you wait on the phone for ever (over an Hour) and still no one to answer , so you end up hanging up. To cancel the policy, bounce you from one department to the other. They are supposed to refund from the date other insurance started and after sending the proof of other insurance policy, still they did not refund based on that actual date instead they use the date i managed to get hold of them. They charged me $7000.00 for a year's insurance on... Read More
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay.... Read More
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now... Read More
10 / 10
Liberty Mutual is one of the more simple companies to deal with. I had to file a claim for my business owner policy after I caught one of my employees stealing a large amount of products from my business. Liberty mutual paid the claim fast and with no efforts. I wish the legal process was as easy…
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
9.4 / 10
Very pleased with Hiscox - their small business insurance rates are very good and they specialize in small business which gives me a peace of mind as a small business owner. So far so good!
10 / 10
Their customer service is absolutely fantastic. Very patient, knowledgable and provided excellent explanation of the purchased policy. I would highly recommend this insurance company to anyone that's looking to protect their business from unexpected expense. Thank you Hiscox for doing a great job for my business!
0.6 / 10
STAY AWAY! I wouldn't recommend hiscox small business liability insurance to anyone. Better not waste both your money and your time. Hiscox customer service is extremely unpleasant, not organized and not professional. It is the worst company we have dealt with in almost 25 years in business!
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Extremely fast and simple. Wasted a lot of time and money until I found these guys! I feel like my business is in good hands now.
10 / 10
Hiscox's the best! My business is insured with them for over 12 years and am not planning to switch!
10 / 10
Excellent experience with Hiscox BOP for my coffee shop. They provided all it needed.
10 / 10
My HI barbershop is well covered with their great BOP product for 5 years already! not planning to switch!
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
10 / 10
Great experience
6 / 10
Didn't relate to the concept much, but it makes sense if you need insurance to go
0 / 10
It doesn't really feel sustainable to me and doesn't offer business interruption, product liability and commercial property insurance. They have no local agents and despite their technology first approach you cannot file claims online. Additionally, product manufacturers are not covered by Thimble and they don't provide enterprise solutions.
10 / 10
As a contractor that works 3 times a week for a few hours, Thimble gets really handy for me and saves me money. I have no use for these massive business insurance coverages offered by traditional insurance companies.
10 / 10
Excellent concept which is useful to many small businesses!
10 / 10
Been waiting for this type of solution for a long time!
10 / 10
Love their business insurance solutions for freelancers! Great app!
Not all those who wander are lost.
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