What are General Liability premiums, and how is General Liability insurance c
If you’re working as a contractor, you must protect your business with the right insurance policy. Specifically, you need commercial general liability insurance for contractors – but how much does it cost? Here’s a look at how general liability insurance works and how to determine how much your policy may cost you.
General liability insurance for contractors is a type of insurance policy aimed at tradespeople, contracting companies, and construction workers. It covers certain business risks, such as:
You can add on more coverage, such as equipment coverage, at an extra cost.
Every contractor benefits from having general liability insurance, especially if they’re an independent contractor. Here are some examples of who should have this type of coverage:
If you work in construction, you may be legally required to have general liability insurance in place before you start working. Some clients may also expect to see proof of insurance coverage before they’ll award you contracts, so it’s worth shopping around for a quote.
Various factors determine how much a general liability policy costs – no two policies are exactly the same. However, here’s a rundown of the factors most likely to affect the cost of your general liability insurance.
Your premiums depend on the level of coverage you require. For example, if you opt for more comprehensive coverage but lower deductibles, your policy may be more expensive than someone with higher deductibles and less coverage.
The team at InsurePro can help you decide how much coverage you need and the level of deductibles you’re comfortable with.
The size of your business, and where it’s located, may influence your insurance premiums. As an example, if your business is located in an area with higher crime rates, you could pay more than a contractor working somewhere with lower reported crime levels.
The general liability insurance cost for contractors varies depending on the type of work they do. For example, contractors performing riskier jobs, such as construction, may pay more than contractors doing “lower” risk jobs like painting or locksmithing.
Insurance premiums are all about risk. Contractors with no insurance claims history are deemed lower risk than contractors who have made claims in the past. So, if you’ve made a claim on your business insurance policy before, insurers might charge you higher premiums than someone with no claims history.
If you’ve been in business a long time, insurers may deem you a lower risk because you have more experience. The result? Lower risk means lower premiums. That said, even if you don’t have much experience, there are many factors that influence the cost of your monthly or annual payments.
The more employees you have, the higher the chances of having an accident or facing a lawsuit. So, the general liability insurance cost for contractors can vary depending on how many people work for you.
The cost of general liability insurance for contractors varies widely. It all depends on, for example, the level of coverage you need and your claims history. On average, though, you can expect to spend around $90 per month or $1090 per year on general liability coverage, according to HowMuch.
If you’re wondering whether general liability insurance is based on revenue, the answer is “sometimes.” Your annual revenue is yet another factor that insurers may consider when they’re calculating your insurance premiums.
Choosing general liability insurance can feel like a daunting task. At InsurePro, we’re committed to keeping the process simple. Our experienced team will shop around to find the best deal for your needs – and it only takes a few minutes to complete our form and get a free quote.