General contractors are professionals who are responsible for managing construction projects. They are responsible for ensuring that the project is completed on time, within budget, and according to the specifications of the project owner.
However, construction projects can be risky, and accidents can occur. That’s why it’s essential for general contractors to have insurance coverage.
Who Needs General Contractors Insurance
General contractors insurance is essential for anyone who works in the construction industry. This includes general contractors, subcontractors, and builders. Any person or company that works on a construction site should have insurance coverage.
This is because construction sites can be dangerous places, and accidents can happen. Workers can get injured, property can be damaged, and lawsuits can be filed. Without insurance coverage, general contractors risk losing their business and personal assets.
Types of General Contractors Insurance
There are several types of general contractors’ insurance coverage available. The most common types of coverage include:
General Liability Insurance
General liability insurance is designed to protect general contractors from lawsuits and claims that arise from accidents that occur on the job site. This type of coverage can protect general contractors from claims related to bodily injury, property damage, and advertising injury.
Workers’ Compensation Insurance
Workers’ compensation insurance protects general contractors from claims related to employee injuries. This type of coverage can provide benefits to employees who are injured on the job, including medical expenses, lost wages, and disability benefits.
Commercial Auto Insurance
Commercial auto insurance is designed to protect general contractors from claims related to accidents involving company vehicles. This type of coverage can provide protection for vehicles owned by the company, as well as vehicles leased or rented by the company.
Builder’s Risk Insurance
Builder’s risk insurance covers general contractors in case of claims related to property damage that occurs during the construction process. This type of coverage can provide protection for the building, as well as materials and equipment.
How Much Does General Contractors Insurance Cost?
The cost of general contractors’ insurance coverage can vary depending on several factors, including the type of coverage needed, the size of the construction project, and the location of the job site. The cost of insurance coverage can range from a few hundred dollars to several thousand dollars per year.
General Contractors Insurance Requirements
General contractors are often required to have insurance coverage by law or by their clients. The requirements for insurance coverage can vary depending on the state and local laws. In general, general contractors are required to have liability insurance, workers’ compensation insurance, and commercial auto insurance.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1521 General Contractors – Single Family Homes, 1522 General Contractors-Residential Buildings, Other Than Single-Family, 1541 General Contractors-Industrial Buildings and Warehouses, 1542: General Contractors-Nonresidential Buildings, Other than Industrial Buildings and Warehouses
- NAICS CODE: 236117 New Housing For-Sale Builders, 236116 New Multifamily Housing Construction (except For-Sale Builders), 236115 New Single-Family Housing Construction (except For-Sale Builders), 236118 Residential Remodelers, 236220 Commercial and Institutional Building Construction, 236210 Industrial Building Construction
- Suggested Workers Compensation Code(s): 5606 Contractor – Project Manager, Construction Executive, Construction Manager or Construction Superintendent, 5403 Carpentry – NOC
General Contractors Insurance – Final Thoughts
General contractors’ insurance is essential for anyone who works in the construction industry. Accidents can happen on the job site, and without insurance coverage, general contractors risk losing their business and personal assets.
Contact us to get a quote on your general contractors’ insurance today and secure yourself against any losses.