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 each day to build your general contracting business. It would be best to have insurance for your contracting business, but you want a low-cost contractors liability insurance quote.

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

We are working with contractors in Minneapolis, Eagan, West St. Paul, Hastings, Duluth, and Lakeville, to mention a few. Paper contractors insurance and home builders insurance are our specialties.

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

For Minnesota general contractors insurance, make us the first and your last call, 952-469-0425.

General Liability Insurance 

Minnesota construction general contractors insurance / general liability insurance is the core policy Minnesota generals, papers contractors, 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 will include a $1,000 property damage deductible. Please consider the property damage deductible when picking the best insurance for your contracting business.

Common 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 sub-contractors.

We have some excellent examples of subcontractor agreements. We offer cheap general liability insurance for contractors. Feel free to ask when requesting your quote, 952-469-0425.

My General is Looking for Proof of Insurance

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

But they should also be asking for additional insured status. Plus, workers’ compensation insurance is equally if not more important.

General contractors doing proper risk transfer would also be looking for 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 952-469-0425 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 if you need to go into a program that allows a higher percentage of work (higher price).

Workers’ compensation is maybe 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 Nine-Factor Test.

Q- Are Minnesota contractors required to have liability insurance?

Ans:- Liability commonly refers to general liability insurance. However, most contractors, business owners realize they should be insured. Then the answer is no unless they are licensed or someone is asking.

If a Minnesota contractor has employees or someone is asking, 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 on the job site and be paid.

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 they should purchase a ghost or waiver workers comp policy if they do not have employees.

Depending on the classification, the starting cost ranges from $535-$670 per year for carpentry or roofers.

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, and that refund could be 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 sub-contractors, they will cancel you, and it is not the insurance company’s intent to cover independent contractors.

All general contractors should be obtaining certificates of insurance from their independent contractors, and the limits they carry should not be less than the general contractors.

We are not attorneys but can share what we see. We recommend general contractors have an attorney write their sub-contractor agreement. The agreement should clarify who is responsible for what, and it should have insurance requirements and hold harmless in favor of the general contractors.

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

As it turned out, the independent contractor did not have insurance at the time. The general contractor’s insurance policy paid $1,100,000 in damages, and the general contractor’s insurance company canceled them. Now, their insurance rates 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, and if they do not, the general contractor’s policy is next in line.

Attornies often list the general contractor in the suit when something happens on a job. 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 like what they do, the number of employees, years of experience, claims history, etc.

General contractors subcontracting out 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 what 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, a good sub-contractor 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 in the neighborhood of $40 to $100 per month for general liability insurance.

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

Q- Do subcontractors need insurance?

Ans:- There are no specific laws in Minnesota that say you need insurance. If you are or are getting licensed or have a general contractor asking, then yes.

Most of the time, you will not be legally required to have general liability insurance or any other kind of coverage. Protect your business and assets today.