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 things that can go wrong, plus legal expenses. It does not cover workmanship.
How is Minnesota GL insurance rated?
Payroll, sub-contractor costs, plus anything else you have added to 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 take the owner, plus the employee payroll, and add them all up. 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 if you have a deductible or not. Common limits of coverage are $1,000,000/$2,000,000. The first number is called 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, there are certain insurance requirements?
The wonderful Department of Labor & Industry has minimum statutory requirements. These are at least a 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 cause your application to be deficient and will delay the processing.
My General Contractor 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. 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 or commercial auto insurance and workers compensation insurance too.
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 needs to you have? 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 pick up the phone and give us a call now. Let us help you find the perfect insurance solution.