Construction is a job that requires enormous responsibility and thus may attract massive liability. Whether a simple renovation project or a large construction project, many accidents may arise, such as the collapse of buildings, trip and fall accidents, equipment breakdown, or commercial vehicle accidents.
Any construction business requires a contractor's insurance policy that will protect you against any claims made by clients or employees. This article comprehensively analyzes the type of Pennsylvania contractor insurance policies you need, add-ons, coverage limits, and reputable companies you can purchase from.
There are specific PA contractor insurance requirements that you must meet. Here are some crucial Pennsylvania contractor insurance requirements:
General liability insurance–This insurance policy is fundamental and must carry a minimum limit of 50,000 dollars coverage for personal injury claims and 50,000 dollars coverage for property damage claims.
Commercial auto insurance–The coverage limit will depend on the number of vehicles you have and what operations you deal with. But primarily you must have limits of 15,000 dollars to cover bodily injury for each person and 30,000 dollars for a single accident.
Workers compensation insurance–It is mandatory to cover all your part-time, full time, and any family member who works on behalf of your company.
Extra coverage requirements--Some types of contracts, such as public projects, may need extra insurance coverage, such as builder's risks insurance or bid bonds.
| 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 |
This general contractor insurance PA is designed to safeguard your clients and your business through the entire phase of a construction project. The policy will cover all claims arising from any damages you may cause to third parties. Your business should take advantage of this coverage as it covers all liability risks associated with all your ongoing operations.
A client is injured by a construction equipment while inspecting the construction site.
When renovating or constructing a building, you damage neighbors' properties.
When advertising your construction business, you use misleading information.
You make defamatory remarks on your website or social media accounts
The products you distribute to clients cause them harm
Cyber liability insurance–If you run your construction business digitally, you are exposed to ransomware or unauthorized access to your sensitive data. It would be best to have this policy to shelter your business from any losses suffered after any illegal access to your data
Contractual liability coverage–This will cover all liabilities that are assumed under specific contracts. It will cover all injuries and damages as part of your contractual obligations
You can be paid up to $2 million to cover third-party injuries and liabilities after an unpredictable accident has happened on the construction site. The amount can be paid for a single occurrence, while you can receive up to $5 million as the aggregate limit.
| 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 |
This insurance cushions your business against any claims arising from committed or alleged mistakes or errors in your construction work. For instance, you can make a mistake when building the foundation of a house, which may later cause your client to incur expensive readjustments after a few years. The client can sue you to recover the extra expenses. In such an event, this type of contractor liability insurance PA will cover such claims.
You procure faulty construction materials, leading to the owner incurring hefty expenses.
You make a mistake in the design of a building, leading to a collapse
You unprofessionally break off a contract agreement, leading to a client incurring losses
Run-off coverage–If you decide to sell your construction business or cease operations, this add-on will offer coverage for claims made after your policy expires. But the claims must be related to the professional construction services you offered while the policy was active
Subcontractor liability extension–This add-on will extend the coverage of your standard professional indemnity insurance and include subcontractors working on behalf of your business
If your customers sue you for professional negligence or mistakes, your insurer can pay you a coverage limit of $500,000 to $1 million. You can use the amount to pay settlements, legal, and judgment fees.
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 covers your property and other specified structures. Aside from contractor liability insurance PA, purchase this if you heavy machinery and buildings. It covers perils such as natural disasters, vandalism, or fire. If an accident happens and your property is damaged, this policy will pay the rebuilding, repairing, and replacement costs to ensure your business runs smoothly.
If your inventory is destroyed by fire, the insurance will cover the costs of replacing the inventory.
Storms can destroy your buildings, and this insurance will cover rebuilding costs.
The insurance will cover all associated costs and losses if your property is vandalized.
Flood insurance–The standard commercial property insurance may not cover flood events; in such circumstances, you require flood insurance as an add-on.
Earthquake insurance–Although Pennsylvania is not considered an area prone to earthquakes, earth tremors can occur. You can include this add-on to protect your property.
After an accident, your insurance company will evaluate the damages suffered and how much money is required to rebuild or repair your property. But generally, the commercial property coverage included in home improvement contractor insurance PA offers a $25,000-$500,000 limit.
| 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) is a comprehensive and cost-effective policy for medium and low-risk businesses. Consider taking a BOP if you operate a medium construction business. This policy includes property, business interruption, and general liability insurance.
During your construction project, you may damage nearby property
Claims of defamation
Claims of slander or libel
Any damage to your business contents and property
Umbrella insurance–Offers additional liability in addition to what your BOP can provide. It will cover extra costs in any accidents where claims exceed the limits provided by your policy
Equipment breakdown coverage–This add-on will cover replacement or repair costs for your equipment in case of any electrical or mechanical breakdown
BOP includes two types of coverage limits; property and liability insurance. For liability, you will get $1 million to $2 million for a single occurrence, while for property insurance, you will get $10,000 to $500,000.
| 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 |
This insurance policy will shelter your valuable tools and equipment. It will cover damage, theft, or loss of your essential items. But you need to note that this insurance will cover only accidental damage or theft and will not compensate you for intentional acts or normal wear and tear.
Your tools and equipment are stolen
Fire causes damage to the tools you use for business operations
Your items are lost when being transported or in other off-site premises
Inland marine insurance–This policy will cover all items frequently moved from one job site or location to another.
Contractor's equipment floater–This add-on offers comprehensive coverage for your equipment and tools; it extends the coverage to items that are lost or damaged at off-site locations
After your tools or equipment are lost or damaged by covered events, your insurance provider can pay you up to $50,000 in compensation. The amount should be sufficient to cover replacement and repair costs.
Commercial auto insurance is required for all businesses that operate commercial vehicles. This helps you avoid medical bills, lawsuits, or repair expenses resulting from auto accidents. It covers your passengers and driver in the event an accident occurs.
Liability coverage–Shelters your employees and company from unexpected costs after an accident. It covers property damage and any bodily injury
Comprehensive coverage–This covers all non-collision events such as vandalism, theft of your vehicles, and destruction from natural disasters
Collision coverage–Pays for the repair costs if your commercial vehicle hits another vehicle or object
Medical payment coverage–Helps to pay for all injury-related costs that can result from a covered incident. It covers hospital fees, ambulance costs, medical bills, and funeral costs
Uninsured/underinsured motorist coverage–If the driver at fault is uninsured or underinsured, this insurance will pay for all the related injuries and damages
Roadside assistance–This coverage covers the costs of fuel delivery and towing services, among other roadside assistance services, if your vehicle breaks down on the road
Cargo insurance–You can include extra coverage if you transport materials, goods, or equipment. This add-on will cover the damage or loss of your cargo
The coverage your insurance provides can be $50,000 to $500,000. But this amount will depend on the extent of the accident and the losses your business suffers.
This is crucial coverage for contractors as it offers additional protection in case the worst catastrophes hit your construction. The policy offers extra protection beyond your standard policy's limits. If your business faces high-value claims, this insurance policy safeguards your business from incurring extremely high settlement costs.
You cause property damage when conducting your construction business
Your business is accused of slander or defamation
Your construction equipment injures a visitor
Employment practices liability insurance–Will shelter your business from claims related to employment practices such as harassment or wrongful termination
Directors and officers liability insurance–If you are a director for your construction business, this add-on will protect your assets in the event of any lawsuits of mismanagement or wrongful acts
You can get a reimbursement of $1 million to $10 million. You can use this money to settle any extra amount not covered by your primary insurance limit.
Workers' compensation insurance shelters your construction business if workers sustain injuries or fall sick. But the illnesses must be closely related to work-related hazards or due to strenuous activities. Some of the costs covered by this policy include:
Medical expenses
Lost wages
Recovery costs that are related to occupational injuries
Legal fees when your employees sue you
Funeral costs
Death benefits to the designated beneficiaries
An employee trips while constructing a building and sustains an injury
Mental health issues due to work-related trauma or stress
Back injuries due to lifting heavy construction materials
Voluntary compensation insurance–This add-on will extend your worker's compensation coverage to include all volunteers not covered by the standard policy
Foreign voluntary workers' compensation–If your employees are required to operate internationally, you need this coverage to offer your employees benefits in case they fall ill or get injured when constructing abroad
The coverage for your standard limit should sufficiently cover all ambulance costs, hospital bills, and medication expenses. For the lost income benefits, an insurance company calculates it depending on an employee’s weekly wage.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $33 | $396 | $0-$500 |
| Professional liability insurance | $50 | $600 | $1,000-$2,000 |
| Commercial property insurance | $60 | $720 | $1,000-$2,000 |
| Business owner's policy | $83 | $996 | $1,500 |
| Tools and equipment insurance | $36 | $432 | $500-$1,000 |
| Commercial auto insurance | $55 | $660 | $500-$1,000 |
| Workers compensation insurance | $94 | $1,128 | $2,500-$5,000 |
| Excess liability insurance | $38 | $456 | $500-$1,000 |
The average PA contractor insurance cost is $33 per month or $396 per year for a $1 million general liability policy. But actual premiums will vary depending on the size of your construction business, exposed risks, or number of workers. Here is a table that summarizes the cost of a $1 million contractor liability insurance PA from some reputable companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $16 | $192 | Best overall; Fastest general liability insurance |
| The Hartford | $19 | $228 | Comparing PA contractor insurance quotes online |
| CoverWallet | $21 | $252 | Contractors who are looking for a company with unrivaled experience in underwriting contractors' insurance policies |
| Tivly | $25 | $300 | Contractors who want to compare contractors' insurance quotes on their phone |
| Thimble | $29 | $348 | Contractors looking for coverage for one-time projects |
| Hiscox | $32 | $384 | Contractors looking for an insurance policy with automatic renewal |
Get all the best quotes from leading providers in a click of a button!
Here are some of the companies you might want to work with. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability policy:
Offers your construction business a virtual proof of insurance
You can obtain contractors insurance coverage within minutes
Their customer team personnel are ready to offer you guidance at any time
When you choose their BOP or purchase many policies together, you can get a 10% discount
Couldn't find any
NEXT is a well-known insurance carrier that was started in 2015. Over the last eight years, this company has been offering contractors insurance on its online platform. Their AI technology helps them to properly manage customers' policies and ensure processing of claims is done quickly. Their unparalleled experience ensures the process of underwriting a policy is straightforward.
Best for: Best overall; Fastest general liability insurance
Average cost: $16 per month
Our rating: 10/10
This company has a comparison tool where you can quickly get quotes from many insurance companies.
They have hired the best agents to assist contractors in obtaining the ideal coverage for their business.
Their insurance premiums are affordable even for startup contractors
They are an insurance broker who doesn't have direct control of the policies they offer
CoverWallet collaborates with different insurance carriers to offer contractors comprehensive coverage. They stand out due to their ability to connect businesses with big players in the insurance market. You can buy several policies such as workers' compensation, BOP, general liability, commercial property, commercial auto, and tools and equipment insurance.
Best for: Comparing PA contractor insurance quotes online
Average cost: $19 per month
Our rating: 10/10
This company offers insurance resources to help you better understand the insurance needs of your business.
They periodically conduct webinars that educate customers about their insurance needs.
Their customer care team will assist you in getting the right coverage for your business.
You can get budget-friendly insurance premiums
Primarily offers benefits for AARP members
The Hartford is known for partnering with AARP and offering unique benefits. But they also offer insurance for contractors either starting out or already established. They have unbeatable experience and expertise when it comes to underwriting various policies. You can get comprehensive coverage for your construction business.
Best for: Contractors who are looking for a company with unrivaled experience in underwriting contractors' insurance policies
Average cost: $21 per month
Our rating: 10/10
This vast insurance marketplace lets you connect with the best providers.
You have versatility when it comes to selecting your provider
You can obtain cost-effective policies for your construction business
Third parties offer their insurance policies
Tivly bridges the gap between insurance carriers and contractors. They act as an intermediary who will help you get the ideal coverage. With this company, you can obtain the most affordable insurance premiums. They also have a straightforward virtual platform where you can obtain a contractor's insurance. Call now to compare quotes over the phone.
Best for: Contractors who want to compare contractors' insurance quotes on their phone
Average cost: $25 per month
Our rating: 9/10
You can get coverage for your construction business, even for a one-time project.
Increasing your limits or adding more add-ons as your business grows is possible.
This company offers multiple insurance policies for your construction business.
You can only seek assistance online
Thimble is an insurance company offering contractors coverage for one-time or long-term projects. If you want to renovate a building for a day or week, this company will shelter you from any accidents during this period.
Best for: Contractors looking for coverage for one-time projects
Average cost: $29 per month
Our rating: 9/10
The company is known for processing contractor’s claims fast
They offer discounts and benefits on their worker's compensation insurance
They have a virtual platform that is easy to operate
Couldn't find any
Hiscox is an insurance company that has been around for over a century. They have an unrivaled reputation and efficacy when issuing contractor insurance policies. If you have a large construction company, Hiscox will offer specialized cover for your business. Additionally, they have a proactive customer service team who are ready to offer the needed assistance.
Best for: Contractors looking for an insurance policy with automatic renewal
Average cost: $32 per month
Our rating: 9/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
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
1 / 5
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.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
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!
Not all those who wander are lost.
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