Liability insurance for contractors and subcontractors
Contractors insurance is coverage that can protect your business from devastating financial debts that can result from work-related accidents. It’s important to protect your livelihood with adequate coverages and limits that match your exposure in case your business is threatened.
Protect against things like lawsuits and other liabilities with contractors insurance through the Progressive Advantage® Business Program. Our team of experts can work with your budget to help you secure customized commercial auto and business insurance policies.
Who needs contractors insurance?
Contractors, subcontractors and independent tradespeople should carry commercial insurance. It protects your business and is often required by many employers before you can start working for them. Common trades that need contractors insurance include:
It’s always good to have insurance in case of mishaps, even if you don’t contractually need coverage.
How much does contractors insurance cost?
One of the most influential factors affecting your contractors insurance cost is the type of work involved in your specific trade. For example, a roofing contractor is exposed to risks that an HVAC technician isn’t and vice versa. Therefore, you could expect their rates to differ.
Other factors that impact the cost of contractors insurance are employees, coverage needs, vehicles, location and claims history.
Customizing a quote to match your specific business is the only way to know you’re getting an accurate rate and enough coverage. Start by calling us or starting a quote online.
Common insurance coverages for contractors
Basic coverages
General liability is typically needed before a contractor can begin work on a job. It could cover you if your business is liable for things like injuring people, damaging property or faulty work.
A commercial auto policy provides protection for vehicles used for work or to transport tools and other contractor materials. You have the choice to cover attached equipment, such as ladder racks and permanently attached tool boxes. Individual tools and materials usually aren’t covered under this policy.
Other coverages contractors might need
A BOP packages contractors liability and coverage for personal property and commercial buildings into one policy.
Workers’ compensation protects if your employees become ill or injured while at work.
What does contractors insurance cover?
Contractors insurance usually covers business liability exposures, such as injuries or damage to a client’s property for which your business is responsible. This is covered by general liability insurance, an essential part of a contractors insurance policy. Contractors can also add coverage for tools and equipment used at job sites with an inland marine endorsement.
What’s the difference between a certificate holder and an additional insured?
A certificate holder is simply the business or contractor that carries the coverages as described on the certificate of insurance. An additional insured is another business or contractor that’s also listed on the certificate holder’s insurance policy.
What kind of insurance should a contractor have?
While some companies offer a “one-size-fits-all” contractors insurance policy, we know every contracting business is unique. That’s why our insurance experts will work with you to customize a policy just for your business, so you only pay for the coverages you need.
Are contractors required to have insurance?
While business insurance may not be required by law, without insurance you could be held personally liable for a mistake on the job. Additionally, before bidding or taking on a job, you may be required to show proof of insurance.
Do I need workers’ compensation insurance if I’m an independent or self-employed contractor?
