No person would want his house to look bad. Moreover, a poorly maintained house poses dangers to neighbors as it can quickly cause a fire or infect other houses with mold. This is why periodic home improvements must be made.
Home improvement contractors update a house’s roofing, plumbing, electrical wiring, and other parts.
Your job has many risks. For one, the electrician you hired might get electrocuted while fixing grounded wires. The clients or their children can get hit by equipment or flying debris as you’re demolishing old walls and sidings.
Purchase insurance. What provides the best protection is a tailored home improvement contractor insurance package. This falls into the general category of commercial contractor insurance.
The features of home improvement insurance varies from carrier to carrier. This is why it’s important to look into what policies are included, the cost of premiums, and the best companies. Here’s a guide that helps you with this.
Professional liability, general liability, pollution liability, and professional liability, are the three types of home improvement liability insurance. You want to have all of these to enjoy an impenetrable armor against claims that third parties may file. Proceed below to know how each of this works.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | |
|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $1,000,000 | $100,000 | $5,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Included | Excluded |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Excluded |
| Equipment breakdown floater included? | No | Yes | Yes | Excluded |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 |
Improving a house means that you demolish or remove structures. It’s not impossible for someone, other than employees, to get injured while doing this. Moreover, you might also overdo things and do some damage instead of refreshing the client’s house.
Clients and their neighbors can file a claim for bodily injuries or property damage. Competitors can also sue you for slander, libel, and copyright infringement. General liability insurance protects you from these exposures.
You can use general liability insurance to cover the costs for medical treatment, property damage reimbursement, legal defense, and court judgments if a claim is filed. Use the table above to see which company best offers this type of home improvement business insurance.
General liability insurance can help out if the following happens in your home improvement project:
An independent contractor demands compensation for injuries after getting hit by a plank or getting electrocuted by defective equipment
Debris flew to the window of the client’s neighbor
Your employee hit someone while using a tractor to remove debris after you demolished the client’s wall
Not really. But know that there are states which require contractors to purchase a $1 million-$2 million general liability insurance for their home improvement project.
Carriers sell $1 million-$2 million general liability insurance for home improvement contractors. However, since projects are highly risky, it’s possible to get a general liability policy with up to $5 million limit.
| CoverWallet (Best) | NEXT | Thimble | Hiscox | |
|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $250,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $250,000/$2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | No | No |
| Deductible | $500 | $500 | $500 | $500 |
Clients can hold you liable for errors and oversights. This is because home improvement contractors are expected to observe expertise in order to avoid outcomes that will force the client to invest more money for the project.
General liability insurance doesn’t provide coverage if a client files a claim against your home improvement service. And so, you’ll need to purchase professional liability insurance. Use the table above to see which insurance company best offers this type of home improvement insurance policy.
Professional liability insurance will cover the demanded monetary compensation and legal defense costs if a client files a claim because you:
Failed to finish the renovation project on the date stated in the contract or the time-frame stated by the client
Used the wrong materials or failed to provide quality materials for the home improvement project
Overcharged the client
Failed to follow safety measures, which resulted in injuries to the clients, independent contractors, and other third parties
Lost an important document for the home improvement project such as blueprints or receipts which the client must see
Failed to follow blueprints or plans that was crafted according to the client’s preferences
Leaving the home improvement project unfinished
As a home improvement contractor, you need $1 million-$2 million professional liability insurance. Consider adding a waiver of subrogation to the policy if possible to enjoy better protection against claims for negligence and other related offenses.
When you renovate or improve a house, there will be debris. Of course, you have to use owned or rented dump trucks to take this out of the project site.
The dump trucks can accidentally spill debris. And so, a professional liability policy is the home improvement contractor liability insurance that will solve the resulting problems. Pollution liability insurance can pay for the:
Cost of cleaning the debris up
Cost for environmental restitution if the spilled debris polluted rivers, streams, forests, or areas near households
Legal defense expenses if third parties file a claim for property damage or bodily injuries
Public relations
The limits of pollution liability insurance greatly varies, depending on which insurance company you decide to work with. It’s possible to get as little as $500,000 coverage or as hefty as $25 million coverage from the policy.
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| CoverWallet | NEXT (Best) | Thimble | |
|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $400,000 | $1,000,000/$2,000,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $1,000,000/$2,000,000 |
| Outdoor signs | Excluded | $2,500 | $1,000,000 |
| Accounts receivable | Excluded | Excluded | $1,000,000 |
| Money and securities | Excluded | $2,500 | $5,000 |
| Lock and keys | Excluded | $2,500 | Included |
| Business interruption floater | Excluded | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Yes |
| Inland marine insurance floater | Excluded | Excluded | Included |
| Employee dishonesty floater | Excluded | $5,000 | Excluded |
Commercial property insurance is a coverage for your business’s owned, leased, or rented storehouse, warehouse, office, or building. Having this policy will increase your business’s resilience against the unexpected. Use the table above to see which company offers the best commercial property insurance.
Commercial property insurance reimburses the actual cash value or replacement cost of a covered stand-alone building, warehouse, office, or storehouse that got damaged or destroyed. Coverage applies if either is caused by the following:
Fire
Theft
Vandalism
Civil commotion
Riot
Sinkhole collapse
Volcanic action
Lightning
Weather
Falling objects
Impact
Aircraft
Vehicle
Sprinkler leakage
Yes. Commercial property insurance grants a $10,000-$100,000 worth of coverage for equipment and tools. Examples of items covered are forklifts, tractors, drills, concrete mixers, cutters, and more. Note that the coverage of commercial property insurance doesn’t apply if tools and equipment got lost or damaged during travel or while at the site of the home improvement project.
No. Unfinished home improvement projects are under your custody but they’re not a business property. Nonetheless, you can include a builders risk policy in your home improvement contractor insurance package to address this gap.
| CoverWallet | NEXT (Best) | Thimble | |
|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $400,000 | $25,000/$500,000 |
| Optional policies can be added? | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes |
Purchase a business owner’s policy and you will protect yourself against legal liabilities and commercial losses in one go. This type of home improvement insurance bundles a general liability policy and commercial property policy. It’s even possible to further add non-owned/hired auto liability coverage, or cyber liability coverage for more protection. Use the table above to see which company offers the best business owner’s policy for home improvement contractors.
| NEXT (Best) | Thimble | |
|---|---|---|
| Aggregate limit | $5,000/$10,000 | $1,000/$5,000 |
| Offered as an endorsement to general liability insurance? | Yes | Yes |
| Covers hired and borrowed equipment? | Yes | Yes |
| Miscellaneous equipment also covered? | Yes | No |
| Deductible | $500 | $500 |
You don’t only want to insure tools and equipment against damage, loss, or destruction while they’re in the warehouse, office, stand-alone building, or storehouse. It’s also important to protect them while they’re being used at the site of the home improvement project. For this purpose, you need to purchase tools and equipment insurance.
Tools and equipment insurance will cover the repair or replacement of tractors, forklifts, ladders, concrete mixers, drills, and other related items that got damaged, lost, or destroyed due to fire, theft, vandalism, operator error, upset, electrical surge, electrical shorts, and other covered perils.
You can use this insurance when the covered exposure happens while the equipment is in transit or currently at the site of the home improvement project.
Home improvement belongs to the construction industry, which is one of the industries with the highest count of work-related injuries and deaths. Experts estimate that at least 75 deaths occur per year and this translates to 6 deaths a month.
You don’t want to bear the burden if an employee gets injured or dies at work. A safe way to shift your responsibility somewhere else is by buying workers compensation insurance. By having workers compensation insurance, the insurance company will be compelled to cover these costs when an employee gets injured or sick because of work:
Emergency care
Hospitalization
Medication
Rehabilitation and retraining
Lost wages
Death benefits
You will use dump trucks, some trailers, or maybe even tractors to transport supplies and haul debris. It’s important to get commercial auto insurance if you’re owning or leasing such heavy equipment.
Commercial auto insurance can do many things. Here’s a quick summary of how this home improvement business insurance can help you:
Cover the medical treatment of third parties if your dump truck, tractor, or any other covered mobile equipment causes an accident while moving debris
Cover the medical treatment of the driver if your dump truck, tractor, or any other mobile equipment gets involved in an accident caused by an uninsured/underinsured driver
Cater to the repair or replacement of parts if your dump truck, tractor, or any other mobile equipment sustains damage due to fire, theft, weather, and other covered perils
Builders risk insurance protects the home improvement project during its construction phase. If a covered project sustains structural damage or has its materials lost because of fire, theft, vandalism, explosions, lightning, and other covered perils, builders risk insurance will reimburse the resulting financial losses. In other words, this sees to it that the project can be completed even if a disaster happens.
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| General liability insurance | $70 | $840 | $0-$500 |
| Professional liability insurance | $90 | $1,080 | $500-$1,000 |
| Commercial property insurance | $75 | $900 | $1,000-$2,000 |
| Business owner's policy | $140 | $1,680 | $1,500 |
| Commercial auto insurance | $55 | $660 | $500-$1,000 |
| Workers compensation insurance | $110 | $1,320 | $1,000-$2,500 |
| Builders risk insurance | Depends on the estimated value of the ongoing home improvement project | Depends on the estimated value of the ongoing home improvement project | $1,000-$2,500 |
The average home improvement contractor insurance cost is $70 per month or $840 per year for a $1 million general liability insurance. Note that this is just an estimate and your actual home improvement insurance cost can be higher or lower depending on these factors:
Location
Number of employees
Annual revenue
Policy limits
Deductibles
In connection, here’s a table showing the rates of the companies where you can get a cheap home improvement insurance quote:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $55 | $660 | Best overall; Fastest general liability insurance for home improvement contractors |
| CoverWallet | $57 | $684 | Home improvement contractor insurance online quotes comparison |
| Tivly | $60 | $720 | Comparing quotes over the phone |
| Thimble | $65 | $780 | On-demand coverage for home improvement contractors |
| MHIC | $73 | $876 | Contractual-based coverage for home improvement contractors |
Each insurance company offers different levels of customization to meet your coverage needs and your budget. A website that compares multiple companies ensures that there are no underwriting issues and that you get the lowest premiums.
Comparing insurance quotes may also fill any gaps that may occur without recognizing the variety of policies available for your business. We allow you to compare quotes with a click of a button. Start by clicking the “Get Quotes” button on this page.
Get all the best quotes from leading providers in a click of a button!
Always strive to work with the best company to avoid headaches. What might be an easy way to find it is by reading reviews. Below are our insights of the best home improvement business insurance companies. Read to know their pros, cons, and cost of a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for home improvement 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 might be a good option if you’re looking for quick coverage online. This company will insure you through its contractor’s insurance package. You can purchase this as a deluxe, premiere, or basic coverage. Policies offered are as follows:
$1 million-$2 million general liability insurance
$1 million professional liability insurance
$400,000 commercial property insurance
Business owner’s policy
Workers compensation insurance
Commercial auto insurance
You will find NEXT good because it quickly issues an online certificate of insurance. All you have to do is download the NEXT app and use your account, which is made after you get insured.
Best for: Best overall; Fastest general liability insurance for home improvement contractors
Average cost: $55 per month
Our rating: 10/10
Compare home improvement contractor insurance quotes online
Cancel your coverage anytime
Waiver of subrogation can be added to general liability and professional liability insurance
Terrorism coverage can be included
Not an insurance company but an insurance broker
CoverWallet’s home improvement contractor insurance package is made by sourcing the insurance quotes of different partners. That said, this company sees to it that you enjoy comprehensive coverage regardless of business profile. These are some of the policies available:
$1 million-$2 million general liability insurance with waiver of subrogation
$1 million-$2 million professional liability insurance
$50,000 commercial property insurance
Commercial auto insurance
Workers compensation insurance
Business owner’s policy
Best for: Home improvement contractor insurance online quotes comparison
Average cost: $57 per month
Our rating: 10/10
Compare quotes over the phone
Responsive customer service
A partner of many reputable insurance companies
You need to call to get a quote
Tivly covers home improvement contractors through its contractor’s insurance package made by compiling the quotes of partners. This offers a general liability policy, professional liability policy, pollution liability policy, commercial auto policy, and others. You need to call a Tivly representative to compare quotes over the phone.
Best for: Comparing quotes over the phone
Average cost: $60 per month
Our rating: 10/10
On-demand coverage
Numerous add-ons can be included to general liability and business owner’s policy
Quick to issue an estimate of your rates
Allows you to choose policy limits
You can’t reach customer service by calling
Thimble is a good option if you’re looking for on-demand coverage that conforms with the minimum insurance requirements of contracts. Just like NEXT and Tivly, you get covered through a generic contractor’s insurance package. Policies you can avail are:
$1 million-$2 million general liability insurance with an optional business equipment coverage
$1 million-$2 million professional liability insurance which may automatically come with a waiver of subrogation
Business owner’s policy
Workers compensation insurance
Best for: On-demand coverage for home improvement contractors
Average cost: $65 per month
Our rating: 9/10
Can provide policies that great fits the needs of home improvement contractors
Allows you to file a claim online
General liability and professional liability can cover temporary staff
Contractual-based coverage available
Coverage is provided in partnership with Fuller and Associates
MHIC isn’t an insurance company. Rather, this is an organization that seeks to regulate and continuously improve the experience, knowledge and expertise of home improvement contractors. This company grants life and business insurance coverage. You need to call and contact a representative of the organization to get covered.
Best for: Contractual-based coverage for home improvement contractors
Average cost: $73 per month
Our rating: 9/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
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
Not all those who wander are lost.
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