General Contractors Insurance

Minnesota General Contractors Insurance

Are you searching for general contractors insurance in Minnesota? Your search has ended.

General Contractors Insurance. As a general contractor in Minnesota, you work hard daily to build your general contracting business. Having insurance for your contracting business would be best, but you want a low-cost contractors’ liability insurance quote.

Your expertise is not in working with insurance daily; it’s in working as a general contractor. Relax and trust our services. We work with general liability insurance for contractors on a daily basis.

We work with contractors in Minneapolis, Eagan, West St. Paul, Hastings, Duluth, and Lakeville, among others. Our specialties are paper contractors’ insurance and home builders’ insurance.

We quote multiple contractors’ general liability insurance companies to find you the best rate and the proper coverage. Please provide your information once, and let us shop for you.

General Liability Insurance – General Contractors Insurance

Minnesota construction general contractors’ insurance, also known as general liability insurance, is the core policy that Minnesota general contractors, subcontractors, and home builders typically purchase.

What does the contractor’s insurance / general liability insurance cover? General liability insurance provides coverage for bodily injury and property damage claims. Minnesota general liability insurance protects your premises, product, operations, and completed operations.

Often, MN insurance companies include a $1,000 property damage deductible. Please consider this when picking the best insurance for your contracting business.

Typical general contractors insurance limits of liability coverage are $1,000,000/$2,000,000. The $1,000,000 represents the per-occurrence limit or claim. The $2,000,000 represents the aggregate limits or maximum per policy term limit for all claims presented.

You must understand the basics here, as you should have a contract with a hold-harmless agreement and insurance requirements in place for your subcontractors.

We have some excellent examples of subcontractor agreements. We offer cheap general liability insurance for contractors. Feel free to ask when requesting your quote, 952-222-8073.

My General is Looking for Proof of Insurance

Often, a general contractor will request a certificate of insurance to ensure you can work and get paid. They frequently require general liability insurance for independent contractors, and general contractors often seek general liability insurance themselves.

However, they should also request additional insured status. Workers’ compensation insurance is equally, if not more, important.

General contractors that properly manage risk would also seek commercial auto insurance and a commercial umbrella policy.

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Contact Us for a Quote

Are you looking for affordable general contractors insurance and high-quality coverage that won’t break the bank? Then tell us about your business. We are listening.

We are ready to discuss your Minnesota contracting insurance needs and find you the best protection.

Request your Minnesota general contractors insurance quote now! Please do yourself a favor and call us at 952-222-8073 or use our quick quote form on this page.

General Contractors Insurance Coverage Frequently Asked Questions (FAQs)

Q- What insurance should a general contractor have?

Ans:- General liability insurance and workers’ compensation are essential.

Let us start with what a general contractor is in the eyes of insurance companies. General contractors sub out more than 25%-35% of their work to others.

This percentage draws a line in the sand, indicating whether you fit into a small contractor program (lower cost) or need to enter a program that allows a higher percentage of work (higher price).

Workers’ compensation may be even more important than general liability. An injured employee or subcontractor could leave you liable for medical bills for an extended period.

Please remember what a sub-contractor is regarding the Minnesota Department of Labor & Industry’s Fourteen-Factor Test.

Q- Are Minnesota contractors required to have liability insurance?

Ans: Liability commonly refers to general liability insurance. However, most contractors and business owners recognize the importance of being insured. The answer is no, unless they are licensed or someone requests it.

If a Minnesota contractor has employees or someone asks, the answer is yes regarding workers’ compensation insurance. We often hear, “I do not have employees; I do not need workers’ comp.” It depends on who is asking. If it is the state and you do not have employees, then no, you do not. However, if a general contractor requests it, you must have workers’ compensation coverage in place for the job site.

This raises the issue of a ghost or waiver workers’ compensation policy. A ghost or waiver policy is a zero-payroll policy that provides no coverage for the owner(s).

General contractors need something from their subcontractors, and if they do not have employees, they should purchase a ghost or waiver workers’ compensation policy.

Depending on the classification, the starting cost for carpentry or roofing ranges from $535 to $670 per year for a ghost waiver policy with zero payroll.

This policy is also subject to an annual audit. If the subcontractor can prove they have zero payrolls and no uninsured subcontractors, they may be eligible for a refund, which could include all costs except the $200 administrative fee.

Q- Does general liability cover independent contractors?

Ans:- Yes, general liability insurance can, but many insurance companies exclude the work of independent contractors. If an insurance company discovers that you are working with uninsured subcontractors, it will likely cancel your coverage, as it is not the company’s intention to cover independent contractors.

All general contractors should obtain certificates of insurance from their independent contractors, and the limits they carry should be at least equal to those of the general contractors.

We are not attorneys, but we can share our observations. We recommend that general contractors have an attorney write their subcontractor agreement. The agreement should clearly define responsibilities, outline insurance requirements, and include hold harmless provisions in favor of the general contractors.

Our local Minnesota insurance agency recently experienced a significant fire loss. An independent contractor was using a reciprocating saw, which caused the fire.

The independent contractor did not have insurance at the time of the incident. The general contractor’s insurance policy paid $1,100,000 in damages, and then the insurance company canceled it. Now, their insurance rates have doubled because of an uninsured subcontractor. Always pay your general contractors insurance on time.

Q- What is a general contractor liable for?

Ans:- General contractors are responsible for the project and wages of subcontractors at any level.

Since general contractors are responsible for the job, property damage and injuries can be attributed to them. Independent contractors do not always have insurance; if they do not, the general contractor’s policy is the next option.

Attorneys often list the general contractor as a defendant in the suit when something goes wrong. Thus, the Minnesota general contractor must provide defense costs, even when not directly negligent. Just another reason to have proper general contractors insurance.

Q- How much does a 1 million business insurance policy cost?

Ans: Subcontractors, on average, pay between $482 and $1,200 annually for $1,000,000 of general liability insurance. This price depends on numerous factors, such as their work, the number of employees, years of experience, and claims history, among others.

General contractors subcontracting more than 35% of their work can expect to pay $1,500 per year or more. Factors such as gross sales, a quality subcontractor agreement, and the nature of the work being done are certainly taken into account.

Q- How much does general contractors insurance cost?

Ans: General liability insurance for general contractors, who subcontract more than 35% of their work, pays more than subcontractors, and premiums can exceed $1,500 per year.

It depends on factors such as size, experience, the nature of their work, and whether a good subcontractor agreement is in place, among others.

Q- How much does it cost to insure a construction company in Minnesota?

Ans: Start-ups and one-person operations, on average, depending on the trade, can expect to pay an average of $40 to $100 per month for general liability insurance.

General contractors and contractors subcontracting more than 35% of their work can expect to pay more, like $125 per month or more.

Q- Do subcontractors need insurance?

Ans: Minnesota does not have specific laws that require you to have insurance. If you are getting licensed or have a general contractor asking, the answer is yes.

You are typically not legally required to have general liability insurance or any other type of coverage. However, it is essential to have such protection for the business you have worked hard to create.