Contractors in Oklahoma need insurance for adequate protection. Moreover, the state requirements specific coverage amounts before you can work as a general contractor, an electrical contractor, or any other type of related business. Consider getting insured to have financial backup in case lawsuits and workplace injuries common in the construction industry. Read this guide that explores Oklahoma contractor insurance.
Oklahoma requires contractors to carry insurance and a surety. These regulations ensure that businesses have taken legal and monetary precautions. The Construction Industries Board (CIB) of Oklahoma requires contractors to complete exams and submit documents. The following are the minimum and suggested bond and insurance quantities for plumbing, electrical, and mechanical contractors:
Corporate surety bond: The CIB requires a $5,000 corporate surety bond from all active plumbing, electrical, and mechanical contractors. This surety bond must contain authentic signatures, seals, and a Power of Attorney. A continuous surety bond with a 30-day cancellation notice is required to amend or terminate a bond agreement.
General liability insurance: Active contractors must carry a minimum of $50,000 in commercial general liability insurance. The licensee's name must appear conspicuously on the certificate. The Construction Industries Board should be the certificate holder to verify they are the insurance policy's beneficiaries.
Contractors are required to satisfy the bonding and insurance standards of Oklahoma. Contractors can meet state financial and insurance requirements with the aid of surety bonds and general liability insurance. This safeguards those involved in a construction endeavor.
| 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 |
General liability insurance is crucial for Oklahoma contractors, as it offers protection against third-party bodily injury, property damage, and personal injury claims. You can purchase general liability insurance as a short-term policy that lasts for hours, days, or weeks only. Nonetheless, only a few insurance companies offer this option.
Depending on the scale and nature of the contractor's business, the coverage limits typically range between $1 million-$5 million per incident and $2 million-$10 million in the aggregate.
Accidental property damage: If you accidentally damage a client's property while working on a project, general liability insurance can cover the costs of repairs.
Bodily injury claims: If a third party, such as a client or visitor, sustains an injury at your job site, general liability insurance can cover medical expenses and legal fees.
Advertising injury claims: If you face a lawsuit due to claims of libel, slander, or copyright infringement in your advertising, general liability insurance can provide financial protection.
Completed operations coverage: Provides coverage for any bodily injury or property damage claims that arise after a project's completion.
Additional insured coverage: Adding insured, such as a client or subcontractor, to your policy can provide them with coverage under your general liability insurance.
Contractual liability coverage: Protects you from liabilities arising from contracts you've entered into, ensuring compliance with contractual obligations.
If your subcontractors cause property damage or bodily injury, your general liability insurance can help cover the costs. However, ensure that your subcontractors have their own insurance coverage as well.
| 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 |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
Professional indemnity insurance, or errors and omissions insurance, protects Oklahoma contractors against claims related to professional negligence, errors, or omissions. This can be offered as a stand-alone policy as an add-on to general liability insurance.
Professional Indemnity Insurance coverage limits vary depending on the type of policy and insurer. Typically, the coverage limits range from $500,000 to $2 million.
Professional negligence claims: If a client alleges that your professional services caused financial loss or damage, professional indemnity insurance can cover legal defense costs and potential settlements.
Data breaches: Professional indemnity insurance can provide coverage if you handle sensitive client data and experience a data breach resulting in financial loss or identity theft.
Breach of contract claims: If you fail to deliver services as promised in a contract, professional indemnity insurance can protect you against legal claims.
While general liability insurance covers bodily injury and property damage claims, professional indemnity insurance explicitly covers claims arising from professional services, such as errors, omissions, or negligence. It's essential to have both to ensure comprehensive coverage.
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 protects Oklahoma contractors' physical assets, including buildings, equipment, and inventory, against risks like fire, theft, vandalism, and natural disasters.
The coverage limits are typically determined by the policy and the value of the covered property. Typically ranging between $500,000 and $5,000,000.
Property damage: If your business property, such as your office or equipment, is damaged or destroyed due to a covered event, commercial property insurance can help cover the costs of repair or replacement.
Business interruption: If a covered event, such as a fire, forces you to temporarily halt your business operations, commercial property insurance can cover lost income and ongoing expenses.
Theft: If your tools, equipment, or other assets are stolen, commercial property insurance can help reimburse you for the value of the stolen or damaged items.
Equipment breakdown coverage: This add-on extends coverage to repair or replace equipment that breaks down due to mechanical or electrical failure, such as HVAC systems or machinery.
Inland marine coverage: Covers your tools and equipment while in transit or temporarily stored away from your premises, ensuring protection against loss or damage.
Flood insurance: Standard commercial property insurance typically does not cover flood damage. Adding flood insurance provides coverage for damages caused by flooding, which is especially important in flood-prone areas.
Reviewing your lease agreement and understanding the insurance requirements is crucial if you lease or rent your business property. In some cases, the property owner may require you to have commercial property insurance and include them as an additional insured on the policy.
| 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 |
A business owner's policy (BOP) combines general liability and commercial property insurance into a single package, offering comprehensive coverage for Oklahoma contractors. Consider purchasing a BOP, as it allows you to enjoy lower rates than when buying multiple policies individually.
Coverage limits for a BOP depend on the specific policy and insurer. Still, they generally range from $1 million to $5 million for general liability and vary based on the value of the insured property for commercial property insurance.
Third-party injury claims: If a client or visitor is injured at your business premises and holds you liable, general liability coverage within the BOP can provide financial protection.
Property damage claims: If your business property is damaged due to covered events, such as fire or vandalism, the commercial property insurance component of the BOP can cover the repair or replacement costs.
Business interruption: If your operations are temporarily halted due to a covered event, the BOP can cover lost income and ongoing expenses during the interruption.
Data breach coverage: This add-on protects your business in case of a data breach, covering expenses such as notification costs, credit monitoring, and legal fees.
Employment practices liability coverage: This add-on covers claims related to wrongful termination, discrimination, or harassment by employees or job applicants.
Product liability coverage: If your business manufactures or sells products, adding product liability coverage to your BOP can protect you from claims of injuries or property damage caused by your products.
Insurance providers often offer flexibility in adjusting coverage limits to suit your needs. Discuss your requirements with your insurance agent or broker to customize the policy accordingly.
| 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 |
Tools and equipment insurance protects the valuable tools, machinery, and equipment used by Oklahoma contractors. This coverage ensures that the cost of repair or replacement is covered in damage, loss, or theft.
The coverage limits for Tools and Equipment Insurance can vary based on the policy and the value of the insured objects. Coverage limits typically range from $10,000 to $100,000.
Theft of tools and equipment: Tools and equipment insurance can cover the replacement cost, allowing you to get back to work quickly.
Accidental damage: If your tools or equipment are accidentally damaged while in use, transported, or stored, this insurance can cover the repair or replacement costs.
Fire damage: If your tools or equipment are damaged or destroyed due to fire or other covered events, tools and equipment insurance can provide coverage.
Equipment rental reimbursement: This add-on covers renting substitute tools or equipment while yours are being repaired or replaced.
Breakdown coverage: Adding breakdown coverage ensures that if your equipment or machinery experiences a mechanical breakdown, the cost of repair or replacement is covered.
Loss of income coverage: If your tools or equipment are damaged or stolen, and you're unable to work, as a result, loss of income coverage can provide compensation for the income lost during the downtime.
You can often insure leased or rented tools and equipment under a tools and equipment insurance policy. However, checking the policy terms and conditions and any requirements set by the leasing or rental company is essential.
Commercial auto insurance provides coverage for vehicles used for business by Oklahoma contractors. This insurance protects against liability for bodily injury or property damage and damage to the insured vehicle.
The coverage limits for commercial auto insurance in Oklahoma may vary based on the individual requirements and risks of the contractor. Common coverage limitations range between $50,000 and $100,000 per person, $100,000 and $300,000 per accident, and $25,000 and $50,000 per accident for property damage liability.
Accidents on the road: If you or your employees are involved in an accident while driving a business-owned vehicle, commercial auto insurance can cover the cost of bodily injury or property damage to third parties.
Damage to your vehicle: Commercial auto insurance can provide coverage for repairs or replacement if it's damaged due to an accident, vandalism, or other covered events.
Uninsured or underinsured motorists: If you're involved in an accident with a driver who lacks insurance or has insufficient coverage, commercial auto insurance can protect you from financial losses.
Hired and non-owned auto coverage: Extends coverage to vehicles not owned by your business but used for business purposes, such as rented or employee-owned vehicles.
Cargo coverage: If your business involves transporting goods or materials, adding cargo coverage to your commercial auto insurance can protect the value of the cargo in case of theft, damage, or loss during transit.
Medical payments coverage: This covers medical expenses for you and your passengers in the event of an accident, regardless of who is at fault.
Commercial auto insurance is typically designed to cover vehicles used exclusively for business purposes. Suppose a company vehicle is also used for personal use. In that case, it's important to discuss this with your insurance provider to determine if additional coverage or adjustments to the policy are necessary.
Excess liability insurance provides an additional layer of liability coverage above the limits of your underlying general liability, commercial auto, or employer's liability policies. It helps protect Oklahoma contractors from significant financial losses due to large liability claims.
The coverage limits for excess liability insurance vary based on the contractor's specific requirements and risks. Limits typically range between $1 million and $10 million.
Catastrophic accidents: If a severe accident occurs on your premises or involves your operations, resulting in substantial bodily injury or property damage claims that exceed the limits of your primary liability policies, excess liability insurance can cover the remaining costs.
Lawsuits and legal expenses: Excess liability insurance can cover legal defense costs and settlements or judgments in cases where you are held liable for significant damages.
Reputation protection: In a high-profile incident that could harm your company's reputation, excess liability insurance can cover crisis management expenses, including public relations efforts and reputation repair.
Excess liability insurance sits on top of your primary liability policies and provides additional coverage once the limits of those policies have been exhausted. Maintaining the underlying liability policies is vital to ensure proper coverage and eligibility for excess liability insurance.
Workers' compensation insurance is mandatory coverage for most Oklahoma contractors. It provides benefits to employees who suffer work-related injuries or illnesses. This insurance helps cover medical expenses, lost wages, and rehabilitation costs while protecting employers from potential lawsuits related to workplace injuries.
State laws and regulations determine coverage limits for workers' compensation insurance. In Oklahoma, the coverage limit is typically based on the employee's average weekly wage.
Work-related injuries: If an employee is injured while performing job duties, workers' compensation insurance can cover medical expenses, such as hospital visits, surgeries, medications, and rehabilitation services.
Occupational illnesses: Workers' compensation insurance can cover medical treatments and ongoing care if an employee develops an illness or disease due to work-related exposures, such as exposure to toxic substances or repetitive motions.
Lost wages and disability benefits: Workers' compensation insurance can provide partial wage replacement for employees who cannot work due to work-related injuries or illnesses.
Employer’s liability coverage: This add-on covers legal expenses and damages if an employee sues the employer for negligence or work-related injuries not covered by workers' compensation.
Occupational accident coverage: Occupational accident coverage can be added to workers' compensation insurance to provide additional benefits for accidents or injuries occurring while an employee works but does not meet the workers' compensation coverage criteria.
Return-to-work programs: Some workers' compensation insurance policies offer return-to-work programs that assist in reintegrating injured employees back into the workforce through modified work assignments or vocational rehabilitation.
Independent contractors are typically not covered by workers' compensation insurance. However, it's important to classify workers correctly to ensure compliance with state laws and avoid misclassification issues. If you have subcontractors, they may need workers' compensation coverage.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $30 | $360 | $0-$500 |
| Professional liability insurance | $34 | $408 | $1,000-$2,000 |
| Commercial property insurance | $45 | $540 | $1,000-$2,000 |
| Business owner’s policy | $73 | $876 | $1,500 |
| Commercial auto insurance | $55 | $660 | $500-$1,000 |
| Tools and equipment insurance | $39 | $468 | $500-$1,000 |
| Workers compensation insurance | $82 | $984 | $2,000-$5,000 |
| Excess liability insurance | $42 | $504 | $500-$1,000 |
The cost of Oklahoma contractor insurance is $30 per month or $360 per year for a $1 million general liability policy. Factors that affect premiums are claims history, business history, policy limits, deductibles, and more. Here’s a table showing the cost of a $1 million general liability policy from the best companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $18 | $216 | Best overall; Fastest general liability insurance |
| CoverWallet | $20 | $240 | Comparing contractor insurance quotes online |
| The Hartford | $22 | $264 | Strong financial stability |
| Tivly | $24 | $288 | Comparing contractor insurance quotes over the phone |
| Thimble | $26 | $312 | On-demand coverage |
| Hiscox | $28 | $336 | Professional service and support |
Get all the best quotes from leading providers in a click of a button!
When considering insurance providers for Oklahoma contractors, it's essential to choose reliable companies that offer comprehensive coverage and excellent customer service. Here are brief introductions and ratings for some reputable insurance companies:
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance
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 provides a convenient and comprehensive solution for construction business insurance. Its user-friendly online platform enables you to obtain the necessary coverage at a competitive price, ensuring you can secure bids, safeguard your employees, and protect your valuable equipment.
Best for: Best overall; Fastest general liability insurance
Average cost: $18 per month
Our rating: 10/10
User-friendly online platform access to multiple insurance quotes
A diverse selection of insurance options
Excellent customer service
Not an insurance company but an insurance broker
CoverWallet is an online insurance intermediary that caters to small business owners in the construction industry by facilitating the process of obtaining quotes from multiple insurance providers simultaneously. However, it's important to note that CoverWallet does not directly provide business insurance itself.
Best for: Comparing contractor insurance quotes online
Average cost: $20 per month
Our rating: 10/10
Hartford has a wealth of experience and expertise in offering insurance coverage tailored to small businesses.
Their dedicated agents provide personalized customer service and support
The Hartford has received a higher number of complaints than expected
The Hartford is a well-established insurance company with various coverage options for contractors. Hartford has been a trusted provider of assistance and security for over 211 years, supporting individuals and businesses in pursuing their unique goals, capitalizing on opportunities, and overcoming unexpected challenges.
Best for: Strong financial stability
Average cost: $22 per month
Our rating: 10/10
Compare contractor insurance quotes conveniently over the phone
Allowing you to customize your coverage from scratch
Recommends you to partners if it can’t provide coverage
Does not provide online quotes through a platform
Tivly is a digital insurance platform that caters to contractors and offers customizable coverage. Founded in Norman, Oklahoma in 2009, Tivly aims to streamline the process of purchasing commercial insurance for small business owners by assisting them in obtaining quotes from preferred insurance companies. Call now to compare quotes over the phone.
Best for: Comparing contractor insurance quotes over the phone
Average cost: $24 per month
Our rating: 9/10
Flexible coverage periods, easy online purchasing process
Quick to issue an estimate of your rates
Numerous add-ons to general liability insurance
You can’t reach customer service by calling
Thimble is an innovative insurance provider specializing in on-demand coverage for tour guides. With Thimble, you can purchase insurance by the hour, day, or month, making it an ideal choice for constructors who require insurance for specific periods. Their unique approach caters to the needs of those who seek temporary coverage tailored to their specific requirements.
Best for: On-demand coverage
Average cost: $26 per month
Our rating: 9/10
Strong customer support, customizable coverage options
Provides a mobile app for managing insurance policies and making claims
Offers 24/7 customer service and support
Contractor insurance cover not offered to contractors in Alaska
Hiscox is a well-known insurance provider for contractors in Oklahoma. They are well-known for tailoring insurance policies to the specific needs of contractors in a variety of industries. Hiscox offers a range of insurance products, such as general liability insurance, professional liability insurance, and excess liability insurance. Their policies are designed to protect contractors from potential risks such as property damage, bodily injury, and errors or omissions on the job.
Best for: Professional service and support
Average cost: $28 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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