General Liability Insurance For Contractors is not a legal requirement in most matters. In some areas, General Liability Insurance is a requirement to have a license for several professional contractors. Such as electricians and plumbers, whereas some states may consider surety bonds to have a permit.
It’s common for customers to require General Liability Insurance For Contractors before they involve themselves in business with a builder. If a customer hires a contractor and a disaster happens, the customer may cover for damages instead of the contractor who doesn’t have insurance. In that case, many customers will require General Liability Insurance before employing your business.
Likewise, if your company works as a subcontractor to a general contractor, the general contractor can also require you to have General Liability Insurance For Contractors. The general contractor will sustain the liability that their subcontractors’ accidents will cause.
The average cost of General Liability Insurance For Contractors is around $1,000 yearly. It will depend on small companies with $500,000 and below sales per year. Specifically, it’s essential to often take note of the increase of General Liability Insurance For Contractors’ costs proportionately to revenue. Moreover, some contractors, such as roofing or general contractors, have higher risks. You can also consider exposures as high risks that can have two to three times the premium average cost or even more. Below are the types of risks your company encounters, depending on the costs of General Liability Insurance For Contractors:
Companies with higher risks will have higher premiums when you compare it to those that deem lower risk. For example, a circus will have higher liability premiums when comparing it to a graphic design company. Premiums rise as insurance limits increase. Different insurance businesses have different rating risk frameworks. Henceforth, comparing prices between different insurers is worth it.
For most small companies, $1 million per phenomenon and $2 million limit aggregate is appropriate in Commercial General Liability Insurance. Coupled with liability, providing strong security for your business is suitable for a commercial umbrella policy. That’s how much General Liability Insurance you need.