As a contractor, you know that accidents happen. Whether it’s a slip and fall at a construction site or damage to a client’s property, being adequately insured is essential to protecting your business. But finding affordable contractor insurance can be a challenge.
In this article, we’ll show you how to get cheap contractor insurance without sacrificing coverage. We’ll cover the basic types of contractor insurance, ways to save on premiums, and answer some common questions about contractor insurance.
Types of Contractor Insurance
There are several types of contractor insurance, each covering different risks associated with your business. Here are the most common types of contractor insurance:
Type of Insurance |
Coverage |
General Liability Insurance |
Covers property damage, bodily injury, and personal injury caused by your business. |
Workers’ Compensation Insurance |
Covers medical expenses and lost wages for employees who are injured on the job. |
Commercial Auto Insurance |
Covers damage or injury caused by company-owned vehicles. |
Professional Liability Insurance |
Covers claims of negligence or mistakes in your professional services. |
Most contractors will need general liability insurance and workers’ compensation insurance at a minimum. Commercial auto insurance and professional liability insurance may be necessary depending on the nature of your work.
How to Save on Contractor Insurance Premiums
While insurance is a necessary expense, there are ways to reduce your premiums and save money. Here are some strategies for getting cheap contractor insurance:
Shop Around
Don’t settle for the first insurance company you come across. Shop around and get quotes from multiple insurers to compare prices and coverage. You may find that one insurer offers significantly lower premiums for the same coverage.
Bundle Your Policies
If you need multiple types of insurance, consider bundling them with the same insurer. Many companies offer discounts for bundling policies, which can save you money in the long run.
Increase Your Deductibles
A higher deductible means lower premiums. While it may be tempting to opt for a low deductible, consider how much you can afford to pay out of pocket in the event of a claim. A higher deductible could save you hundreds or even thousands of dollars per year.
Maintain a Good Credit Score
Insurance companies often use credit scores to determine premiums. A higher credit score can result in lower premiums, so make sure to pay your bills on time and keep your credit utilization low.
FAQ: Contractor Insurance
What is general liability insurance?
General liability insurance covers property damage, bodily injury, and personal injury caused by your business. It can also cover legal fees if you are sued for damages.
Do I need workers’ compensation insurance?
If you have employees, you are required by law to have workers’ compensation insurance. This insurance covers medical expenses and lost wages for employees who are injured on the job.
What is professional liability insurance?
Professional liability insurance covers claims of negligence or mistakes in your professional services. It is also known as errors and omissions insurance.
How much does contractor insurance cost?
The cost of contractor insurance depends on various factors such as the type of work you do, the size of your business, and your location. On average, contractors can expect to pay between $500 and $2,000 per year for insurance.
How do I choose an insurance company?
When choosing an insurance company, consider factors like price, coverage, and reputation. Look for companies that specialize in contractor insurance and have a good track record of paying claims.
Conclusion
As a contractor, it’s essential to have the right insurance coverage to protect your business from unexpected accidents and lawsuits. While insurance can be costly, there are ways to get cheap contractor insurance without sacrificing coverage. Shop around, bundle policies, increase your deductibles, and maintain a good credit score to save money on premiums. With the right insurance in place, you can have peace of mind knowing that your business is protected.
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