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 working with insurance daily; it’s working as a general contractor. Relax and trust our services. We work with general liability insurance for contractors daily.

We work with contractors in Minneapolis, Eagan, West St. Paul, Hastings, Duluth, and Lakeville, to name a few. 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.

For Minnesota general contractors insurance, make us the first and last call, 952-222-8073.

General Liability Insurance 

Minnesota construction general contractors’ insurance / general liability insurance is the core policy that Minnesota general contractors, papers, and home builders buy.

What does the contractor’s insurance / general liability insurance cover? General liability insurance covers 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 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 because you should have a contract with a hold harmless agreement and insurance requirements with 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

Many times, a general contractor will ask for a certificate of insurance so you can work and get paid. They often ask for general liability insurance for independent contractors, and general contractors are just looking for general liability insurance half the time.

But they should also ask for additional insured status. Workers’ compensation insurance is equally, if not more, important.

General contractors doing proper risk transfer would also seek commercial auto insurance and a commercial umbrella.

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Contact Us for a Quote

Are you looking for cheap general contractor insurance and quality coverage that doesn’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 contractor 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 a must.

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 if you fit into a small contractor program (lower cost) or need to go into 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 paying for medical bills forever.

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 realize they should be insured. The answer is no unless they are licensed or someone asks.

If a Minnesota contractor has employees or someone asks, the answer is yes regarding workers’ compensation insurance. We hear so often, “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 asks for it, you need work comp to be paid on the job site.

And this brings up the subject 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 subs, they might get a refund, which could include everything but 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 finds out you are working with uninsured subcontractors, they will cancel you, and it is not the insurance company’s intent 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 the same as those of the general contractors.

We are not attorneys, but we can share what we see. We recommend that general contractors have an attorney write their subcontractor agreement. The agreement should clarify who is responsible for what, have insurance requirements, and 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. The general contractor’s insurance policy paid $1,100,000 in damages, but the company canceled it. Now, their insurance rates have doubled.

Q- What is a general contractor liable for?

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

Because general contractors are in charge of the job, property damage and injuries can fall back on them. Independent contractors do not always have insurance; if they do not, the general contractor’s policy is next in line.

Attorneys often list the general contractor in the suit when something happens. Thus, the Minnesota general contractor must provide defense costs, even when not directly negligent.

Q- How much does a 1 million dollar 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, claims history, etc.

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

Q- How much does general liability insurance cost?

Ans:- General liability insurance for general contractors, contractors that sub out more than 35% of their work pay more than subcontractors, and we see premiums of $1,500 or more per year.

It depends on size, experience, what they do, and whether there is a good subcontractor agreement in place, to name a few.

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 has no specific laws that say you need insurance. If you are getting licensed or have a general contractor asking, yes.

You are usually not legally required to have general liability insurance or any other coverage. But it is important to have such protection for the business you worked hard to create.