General Liability Insurance

Minnesota General Liability Insurance

Do you know what contractors’ general liability insurance covers?

Simply, bodily injury, property damage, and negligence. Easy right? Well, there is more to it. A general liability insurance policy has very broad coverage. It protects your business from accidents and unforeseen events, as well as associated legal expenses. It does not cover workmanship.

How is Minnesota GL insurance rated?

Payroll, subcontractor costs, and any other additional expenses you have included in the policy. Tools and equipment, additional insured endorsements, primary non-contributory language, waiver of subrogation/transfer of rights are good examples of possible add-ons.

Insurance companies have minimums, like $30,800 for one-owner operations. If that owner has three employees, each making $45,000. Then, you would add the owner’s payroll and the employee payroll together. That is applied against the insurance company’s rates, and there you have it.

Contractors’ liability insurance is also rated on the limit you buy and whether you have a deductible or not. Typical limits of coverage are $1,000,000/$2,000,000. The first number is referred to as an occurrence limit. That means the maximum amount paid on any one claim. The second number is the aggregate or maximum amount paid during the policy year.

I’m obtaining a Minnesota contractor license. Are there specific insurance requirements?

The excellent Department of Labor & Industry has minimum statutory requirements. These policies have a minimum coverage limit of $300,000 per occurrence, which must include at least $10,000 in property damage coverage.

Proof must be provided to them in the form of a certificate of insurance. A certificate is just a snapshot of your insurance policy. They will accept it on their form or an ACORD 25, the industry-standard certificate form.

It’s very important that your certificate or proof be accurate. Any missing, incomplete, or inaccurate certificate will render your application deficient and delay processing.

My General Contractor is Looking for Proof of Insurance

Often, a general contractor will request a certificate of insurance to ensure you can work and get paid.  Fifty percent of the time, they are just looking for general liability insurance. Sometimes, they are also looking for additional insured status to be added, as well as commercial auto insurance and workers’ compensation insurance.

Do you need someone on your side to help you find an affordable Minnesota general contractors insurance policy?

Seriously, we have helped thousands of Minnesota contractors over the past 30 years. First, we gather all the facts. Please tell us about your business. What do you need? Perhaps contract requirements? Send them to us for a comprehensive review.

Whether you are an established company or just starting a new venture, you can trust us to help guide you through the maze of contractor insurance coverages.

Complete our online quote form or call us now. Let us help you find the perfect insurance solution.