How to Get Contractor Liability Insurance

Contractor liability insurance is required for general contractors to perform work. Contractors can often bid on jobs without having liability insurance, but they need to be insured before they can start the job. This insurance is meant to protect operators and owners from various liability exposures, such as accidents on the job. Insurance companies that offer contractor liability insurance will be rated the same as bond companies, so look for A++, A+ and A ratings.

Instructions

1. Determine the amount of liability coverage you need by evaluating the type of contractor work you will be doing. Your coverage will depend on this, since a higher-risk job will need higher contractor liability insurance coverage. Many contractors and insurance owners require a minimum of $2 million in coverage.

2. Find a company that offers this type of insurance. There are many places online that will give you a cost-and-coverage breakdown for several insurance companies. Call some local insurance agents to discuss your options as well. Get several quotes before you decide.

3. Make a down payment on the contractor liability insurance you choose. Then, make consecutive monthly payments to get your insurance.

Tips & Warnings

• Insurance companies that offer contractor liability insurance will be rated the same as bond companies so look for ratings such as A++, A+, A, A-, B+ and so on.

References

• Business Liability Insurance Guide: General and Professional Liability Insurance Guide