Minnesota Contractor Insurance: Quotes From $13/mo

Table of contents

Minnesota is on the right track to grow its construction industry by 9% by 2025, according to an employment and economic development report by Minnesota. You must have the right insurance policy as a general contractor in Minnesota. This article will examine which policies, limits, and coverages you need for a suitable Minnesota contractor insurance policy.

Minnesota Contractor Insurance Requirements

You must follow specific requirements to operate as a contractor for Minnesota. The state sets out several requirements for insurance policies. See these requirements below. 


Workers’ Compensation Insurance

Workers’ compensation policies must be active to protect employees. You will also have to purchase an employer’s practice liability policy that covers $100,000 of bodily injury and $100,000 of bodily injury by accident. Also, the policy must have a minimum aggregate limit of $500,000.

Whether you are working as a contractor for the state or not, you must have a workers’ compensation policy. This policy protects your workers. There is no minimum requirement to be considered an employee in Minnesota. 

This means you must provide coverage even if you only have one part-time employee. Be sure to plan for construction projects and contracts you need by factoring in Minnesota’s workers’ compensation insurance requirements.


Automobile Liability Insurance

Your auto liability coverage must have a minimum coverage of $2 million per occurrence and cover owned, non-owned, and hired automobiles. Your policy must cover bodily injury and property damage.


General Liability Insurance

You must have a $2 million general liability policy per occurrence and a $2 million annual aggregate. This policy must cover bodily injury, property damage, personal injury, products, and completed operations.


Professional Liability Insurance

Your professional liability policy must have $2 million per claim and $2 million in annual aggregate coverage. Deductibles for these policies must be at most $50,000, although the state can approve higher deductibles on a case-by-case basis. Contractors will need to maintain these policies for at least three years following the completion of work.


General Liability Insurance for Minnesota Contractors

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $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 $1,000,000
Waiver of subrogation included? Yes No Included Excluded No
Hired/non-owned auto liability coverage included? Yes No Excluded Excluded Can be included
Equipment breakdown floater included? No  Yes Yes Excluded Can be included
Can you get a certificate of insurance online? Yes Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes Yes


Your Minnesota contractor insurance policy must have general liability insurance. This policy protects your business against third-party liability claims and court costs. Typically, this coverage will protect against property damage and bodily injury claims.


Situations to Use This Coverage

Here are some situations where general liability insurance can help:

  • Someone wanders onto a contracting job site and injures their knee

  • One of your employees causes damage to someone’s property during business operations


Add-Ons to General Liability Insurance for Minnesota Contractors

Common add-ons to general liability insurance are:

  • Tools and equipment insurance: Tools and equipment insurance can be added to a general liability policy so that it covers repair or replacement in case equipment gets damaged or lost due to fire, theft, vandalism, and other covered perils 

  • Hired and non-owned auto: This lets you cover accidents caused by vehicles your business does not own, like employee-owned vehicles, borrowed vehicles, and leased vehicles


Coverage Limits of General Liability Insurance for Minnesota Contractors

Your contractor insurance Minnesota will typically have a coverage limit between $1 million and $2 million for general liability.


How Long Does It Take to Get Signed Up for General Liability Insurance?

If applying online, most insurers can get you a quote for a policy within just a few minutes of your time. After you get a quote and purchase a policy, you can get a certificate of insurance within a few days. However, some insurers allow you to obtain certificates of insurance nearly instantly, which can help when you need to satisfy insurance requirements in a pinch.

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Professional Indemnity Insurance for Minnesota Contractors

CoverWallet (Best) NEXT Thimble Hiscox The Hartford
Per occurrence limit  $1,000,000 $10,000/$25,000 $1,000,000/$2,000,000 $250,000/$2,000,000 $1,000,000
Aggregate limit  $2,000,000 $20,000/$50,000 $1,000,000/$2,000,000 $250,000/$2,000,000 $2,000,000
Name additional insureds? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No No No No

Minnesota contractors will utilize professional indemnity coverage to protect themselves against the costs of professional mistakes and oversights. It will help you pay the costs to defend yourself in court from claims incurred from such mistakes.


Situations to Use This Coverage

You can use professional indemnity insurance in these situations:

  • You fail to deliver promised services to customers who sue you for financial loss

  • An error you committed results in financial losses for the client

  • A client files a lawsuit and cites you provided inaccurate advice

  • A client accuses you of committing breach of contract


Add-Ons to Professional Indemnity Insurance for Minnesota Contractors

Common add-ons to professional indemnity insurance are:

  • Excess liability: Helps extend the coverage limits of your existing professional indemnity policy.

  • Extended reporting: This add-on will give you extra time to file claims for your policy beyond the policy’s duration.


Coverage Limits of Professional Indemnity Insurance for Minnesota Contractors

Professional indemnity insurance will have coverage limits of $1 million or more for Minnesota contractors.


Is Professional Indemnity Insurance and Errors and Omissions Insurance the Same Thing?

Yes. Professional indemnity insurance and errors and omissions insurance are two names for the same policy. Different industries will commonly use one name over another name for this policy. For example, the medical industry often uses the term malpractice insurance.


Commercial Property Insurance for Minnesota Contractors

CoverWallet NEXT (Best) Thimble The Hartford Hiscox
Building coverage limit (minimum) $50,000 $340,000 $25,000/$500,000 $35,000 $25,000
Contents coverage limit (minimum) $50,000 $35,000 $25,000/$500,000 $35,000 $15,000
Outdoor signs Excluded $2,500 Excluded Excluded Included
Accounts receivable  Excluded Excluded $5,000/$10,000 Excluded Included
Money and securities Excluded $2,500 $1,000 Excluded Included
Lock and keys  Excluded $2,500 Excluded Excluded Included
Business interruption floater Excluded Included Included Excluded Included
Equipment breakdown floater Excluded Included Excluded Excluded Included
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Excluded Excluded


Commercial property insurance protects business property and the business building you utilize in your contracting business. This policy will cover physical events like fires, weather, theft, and vandalism.


Situations to Use This Coverage

Commercial property insurance can help in these situations:

  • Your business building gets damaged from the smoke of a fire

  • Someone breaks into your commercial building and some personal business property

  • A sinkhole collapse happens and causes major damages to your business property

  • A drone crashes and breaks the window of the commercial building you own 


Add-Ons to Commercial Property Insurance for Minnesota Contractors

Here are some common add-ons to commercial property insurance: 

  • Equipment breakdown: Protects equipment used in your commercial building when it experiences mechanical failure, electronic failure, or motor burnout

  • Flood insurance: Flooding is often excluded from commercial property insurance. Getting flood insurance lets you cover business property in cases of water damage resulting from floods


Coverage Limits of Commercial Property Insurance for Minnesota Contractors

The average small business will have a commercial property insurance limit of around $60,000.


What is Extra Expense Coverage?

Extra expense coverage will help your business with additional expenses you may incur while it has been damaged and needs to be repaired. This policy can help you with the cost of relocating to a temporary office and moving supplies and equipment off your property.


Business Owner’s Policy for Minnesota Contractors

CoverWallet NEXT (Best) Thimble  The Hartford Hiscox
General liability aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000
Commercial property coverage limit  $50,000 $320,000 $25,000/$500,000 $35,000 $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


A business owner’s policy combines protections that include general liability insurance, commercial property insurance, and business interruption insurance. You will get many types of valuable insurance protection from this one policy.


Situations to Use This Coverage

A business owner’s policy can help in the following situations:

  • Your business experiences a damaging lightning storm that you need to recover from.

  • A vandal sprays graffiti on your contracting business building’s walls.

  • Someone slips and falls in your office. 

  • You have to suspend business operations to make way for building renovation


Add-Ons to Business Owner’s Policy for Minnesota Contractors

Common add-ons to a business owner’s policy are:

  • Employee dishonesty: This add-on projects your business in cases of illicit employee actions causing you financial loss.

  • Commercial auto: Some insurers allow you to add commercial auto coverage into a BOP that will protect business vehicles.


Coverage Limits of Business Owner’s Policy for Minnesota Contractors

Your Minnesota business owner’s policy coverage will be around $1 million to $2 million for general liability insurance and $50,000 for commercial property coverage.


What Events Are Excluded From My Business Owner’s Policy?

A business owner’s policy does not cover everything. Property damage from natural disasters like earthquakes and hurricanes will not be included in the coverage. You will also need a separate policy for worker injuries called workers compensation.


Tools and Equipment Insurance for Minnesota Contractors

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


A tools and equipment insurance policy will protect the critical equipment you use in your business while traveling to job sites and performing business operations. You can purchase this policy as an add-on to general liability or commercial property insurance. 


Situations to Use This Coverage

Here are some situations where tools and equipment insurance can help:

  • One of your power drills gets damaged while repairing a client’s property.

  • Someone steals a ladder you brought with you to a job.


Add-Ons to Tools and Equipment Insurance for Minnesota Contractors

Tools and equipment insurance may offer these as endorsements for more comprehensive protection: 

  • Equipment breakdown: Covers other physical damage to your tools, like electric shorts, power outages, and motor breakdowns.

  • Rental protection: This allows you to cover the tools or equipment you rent for your contracting business.


Coverage Limits of Tools and Equipment Insurance for Minnesota Contractors

Your tools and equipment insurance coverage limit is typically between $5,000 and $20,000. Your policy will help you repair or replace damaged tools or equipment within those limits.


What Happens if My Tools Get Lost?

You will get coverage under this insurance policy if you lose contractor tools. This policy will also cover tools and equipment that get stolen and vandalized.

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Commercial Auto Insurance for Minnesota Contractors

NEXT The Hartford CoverWallet Hiscox  Thimble
Auto liability aggregate limit (minimum) $25,000/$15,000/$25,000 $100,000/$300,000 CSL $15,000/$20,000/$25,000 $25,000/15,000/$25,000 $20,000/$25,000/$15,000
Rental reimbursement coverage aggregate limit $1,500 $900 Excluded $500 $1,000
Trailers can be added to commercial auto insurance? Yes Yes No Yes Yes
Roadside assistance coverage included  Yes No No Yes Yes
Safe driving discounts included? Yes Yes Yes Yes Yes


A commercial auto insurance policy protects business vehicles from perils on and off the road. Typically, coverage will include components like:

  • Auto liability: This protects your business from liability claims and court fees caused by your business vehicles’ activities.

  • Collision: Covers physical damage to your contractor vehicles from road collisions.

  • Comprehensive: This protection will cover physical damage from other forms except for road collisions.


Situations to Use This Coverage

Commercial auto insurance can help when these happen:

  • While driving to a job site, your business vehicle collides with another vehicle on the road.

  • Another driver scratches your car and drives away.


Add-Ons to Commercial Auto Insurance for Minnesota Contractors

You can increase the protection of commercial auto insurance through these endorsements:

  • Gap coverage: This helps you cover financed vehicles when you owe more on your loan than you will get for the value of the damage done to it.

  • Rental reimbursement: This add-on will help you pay for rental vehicles you might use if one of your business vehicles is damaged and in the repair shop.


Coverage Limits of Commercial Auto Insurance for Minnesota Contractors

Minnesota drivers must have a certain level of liability coverage for their vehicles. Below is a chart where these limits are specified:

Bodily injury liability per person Bodily injury liability per accident Property damage liability Personal injury protection
$30,000 $60,000 $10,000 $40,000


Does Collision Coverage Help If I Hit a Guard Rail or a Curb?

Yes. Collision coverage will help you with damage incidents from collisions on the road. You may qualify for coverage if you get into a single-car accident by hitting a guardrail, a curb, a mailbox, or a fence post.


Excess Liability Insurance for Minnesota Contractors 

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000/$5,000,000 $1,000,000/$5,000,000 $1,000,000/$5,000,000 $1,000,000$10,000,000 $1,000,000/$10,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000

An excess liability policy will enhance an existing insurance policy with additional coverage limits. This allows you to fortify your insurance protection if you have exhausted it. You purchase this policy in increments of $1 million. 


Situations to Use This Coverage

Excess liability insurance can help in these situations:

  • Your general liability policy needs to be increased to meet the needs of a contract you are bidding for

  • One of your liability policies needs more coverage to meet the needs of an expensive lawsuit


Coverage Limits of Excess Liability Insurance for Minnesota Contractors

Excess liability insurance can offer coverage limits of $1 million to $25 million or more, depending on the insurer and insurance policy.


Can I Buy Excess Liability For an Auto Policy?

Yes. Excess liability allows you to respond to situations where a commercial auto policy has been exhausted. By purchasing an excess liability policy, you can help get coverage for unexpected costs that rise above your coverage level. For example, if you had to undergo an expensive medical procedure after a car accident, you would likely want an excess liability policy to cover it.


Workers Compensation Insurance for Minnesota Contractors

Workers’ compensation insurance is a protection required for Minnesota businesses because it benefits injured employees. Suppose one of your contracting business workers is sick or injured during business operations. The policy will cover lost income replacement and medical treatments in that case.


Situations to Use This Coverage

Here are some situations where you can use workers’ compensation insurance:

  • One of your workers becomes disabled due to a fall sustained while doing their job.

  • An employee develops a chronic leg condition from working that limits what activities they can perform at their job.


Who Investigates Employers to Make Sure They Have Coverage in Minnesota?

The government of Minnesota employs the Special Compensation Fund Unit to investigate employers that are not providing workers comp coverage that meets state requirements. Their investigation may result in civil penalty actions for these employers.


Minnesota Contractors Insurance Cost

Minnesota contractor insurance is $28 per month or $336 per year for a $1 million general liability policy. Variables like your business history, insurance history, policy limits, any deductibles, and payroll size will influence the cost of Minnesota contractor’s insurance. Here’s a table showing the cost of a $1 million general liability insurance from the best companies:

Company Cost per Month Cost per Year Best for
NEXT $13 $156 Best overall; Fastest general liability insurance
CoverWallet $24  $288 Minnesota contractor insurance online quotes comparison 
The Hartford $26 $312 Longstanding insurance experience for contractors
Tivly $31 $372 Comparing Minnesota contractor insurance quotes over the phone
Thimble $33 $396 Short-term contractor coverage
Hiscox $39 $468 Contractor insurance with worldwide coverage

Compare Cheap Minnesota Contractor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Minnesota Contractors Insurance Companies

This next section of the article reviews our recommended options for your Minnesota contractors insurance. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability policy. 


NEXT Insurance

Pros 

  • Best overall

  • Get an online proof of insurance and send it as a text message, email, or social media post

  • Fastest general liability insurance

  • Great customer service and reputation

  • Issues an online proof of insurance instantly

  • Outstanding value for money

  • Bundle two or more insurance policies and get a 10% discount

Cons

  • Couldn’t find any 

NEXT offers excellent insurance options for Minnesota contractors at a competitive rate. They have the best overall options for contractors and are highly rated as an insurer. NEXT has an A- rating with AM Best. This rate means it has strong financial backing.  It also has a B+ rating from the Better Business Bureau.

Best for: Best overall; Fastest general liability insurance 

Average cost: $13 per month 

Our rating: 10/10


The Hartford Insurance

Pros

  • Has a local agent network

  • Serves over one million small businesses

  • A mobile app makes tracking your policies simple

  • Car insurance calculator

Cons

  • Lacks the same amount of exciting discounts as some other options

The Hartford is an insurance provider with an A- rating from AM Best. They have written excellent insurance for over 200 years, and it shows. They have a 4.8 rating in their customer reviews and wrote $11 billion in premiums in 2022 for their customers.

Best for: Longstanding insurance experience for contractors

Average cost: $26 per month

Our rating: 10/10 


CoverWallet Insurance

Pros

  • Offers general liability insurance that will include HNOA coverage

  • Online platform for comparing insurance

  • Shop without commitment.

Cons

  • Not an insurance company but an insurance broker 

CoverWallet offers many insurance options for Minnesota contractor insurance buyers. You can access their online resources to learn about the essential types of coverage you will need to succeed while comparing insurance from their 10+ partners.

Best for: Minnesota contractor insurance online quotes comparison 

Average cost: $24 per month 

Our rating: 10/10


Tivly Insurance

Pros

  • Connects you with the right insurers and policies

  • Allows you to compare insurance quotes over the phone

  • A vast network of insurance partners to choose from.

Cons

  • You need to talk to a representative to compare quotes

Tivly has a supreme offering of insurance partners to choose from. You can select from 200 partners offering unique insurance perks. Tivly will help match you with policies and insurers so you can handle the number of choices. The company has 20 years of experience as a tech insurance company. The Better Business Bureau gave Tivly an A rating. Call now and talk with a representative to compare quotes over the phone. 

Best for: Comparing Minnesota contractor insurance quotes over the phone

Average cost: $31 per month 

Our rating: 10/10

Thimble Insurance

Pros

  • Sells customizable durations for their policies

  • Online resources for first-time contractor insurance buyers

  • Finely tune the duration of your insurance policy

Cons

  • None that apply

Thimble is one of the best choices for contractor insurance that you need to get up and running quickly. They let you customize your policy terms to the hour your policy will last. You can get competitive rates for contractor insurance policies like workers comp, business equipment, and general liability insurance.

Best for: Short-term contractor coverage

Average cost: $33 per month 

Our rating: 10/10 


Hiscox Insurance

Pros

  • Agents have a passion for providing insurance services

  • Customers report claim responses are quick

  • 24/7 options for customer care

Cons

  • Some policy coverage has fewer options

Hiscox is an AM Best A-rated insure specializing in providing comprehensive policies for their customers. They have 100 years of insurance experience and serve over 500,000 customers. Hiscox offers worldwide coverage, and its customers are small business owners.

Best for: Contractor insurance with worldwide coverage

Average cost: $39 per month 

Our rating: 10/10 

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