As a general contractor, tradesman, and small business owner, it can be intimidating knowing the liability you’re constantly responsible for. Accidents happen all the time in construction, so when it comes to insurance, it’s best to be protected. Liability claims are very common. Four out of 10 small business will likely experience a claim in the next 10 years, with an average claim cost of $35,000.
We took a look at dozens of small business insurance companies and brokers and narrowed it down to our top four who cater to general contractors, plumbers, electricians, HVAC tradespeople, and professional handymen. These reputable companies can help you find the best insurance carrier and the best rates for your situation. Take a look at the pros and cons of each below and see which insurance company best fits your business needs.
All four insurance companies offer FREE quotes with no obligation to buy, so be sure to take full advantage when comparing!
CoverWallet makes it easy for businesses to understand, buy and manage insurance. All online, in minutes. Coverwallet knows that construction-related businesses have a lot on their plates, and they make it simple, convenient, and fast for you to get the coverage you need at the right price so that you can get back to what matters most – serving your customers, growing your business and managing your operations.
Pros: quotes from several insurance providers with online application, variety of insurance types, can manage policy, pay premiums, and handle claims through online dashboard
Cons: not an insurance provider (3rd party broker), may have to call to complete quote, inconsistent customer service
CommercialInsurance.net takes the work out of buying commercial insurance for general contractor, plumbing, electrical, HVAC, handyman and construction businesses. They help small business owners and tradespeople find quotes for commercial insurance from preferred insurance carriers.
Pros: easy and quick quote process, quotes from multiple insurance providers, A+ rating BBB, great customer service
Cons: not an insurance provider (3rd party broker), no mobile app, can take several days to activate insurance
With over 500,000 small business customers, Hiscox understand the unique risks each business faces. Their coverage lets you take the right risks so you can grow your business, even as you protect against what you can’t see coming.
Pros: quotes and policies available online, up to 5% discount when purchasing 2+ Hiscox products, 14-day money-back guarantee, international policy coverage, designed for micro-business needs
Cons: no coverage in Alaska, only 10 U.S. offices
Next Insurance was created to give your business the coverage it deserves. Simple, affordable and tailored. So no matter what you do, no matter how you define success, NEXT is right there, next to you.
Pros: quick online quote process, 24/7 access portal, cover over 600 business categories, widely used by tradesmen
Cons: not all industries covered in every state, no business owners policy
It’s crucial that construction business owners do not expose themselves to vulnerable situations that may be unique to their trade or business. If you are a general contractor or work in other trades like plumbing, electrical, HVAC, or as a professional handyman, you may be required by your state to carry general liability insurance at a minimum. If you have employees, you likely also need workers compensation insurance.
Even if it is not a requirement, having adequate insurance is the smart thing to do!
Tradespeople and general contractors can also benefit from additional insurance such as coverage for professional liability, the loss or theft of tools and equipment, or commercial auto insurance.
Each insurance provider or broker above has its own unique quality. Be sure to get a FREE quote from each to see which company offers you the best general contractor insurance or the best value for your small business needs.
Remember, when comparing policies ensure they have the same deductibles, coverage limits, and exclusions.
What is the best insurance for small business?
The best insurance for small businesses depends on your specific business. General Liability Insurance is typically suitable for most small construction-related businesses, but may not be sufficient depending on your small business needs.
What insurance do I need for small business?
Small businesses in construction typically require general liability insurance. Depending on the business industry and small business needs, you may need additional types of insurance coverages such as professional liability, commercial auto, equipment, or workers comp.
Do I need business insurance for an LLC?
If you operate under a limited liability company (LLC), you may not be legally required to have business insurance in every state. However, it is generally best practice to operate a small business with proper insurance coverage. A General Liability policy is a good place to start.
How much is small business insurance per month?
Small business general liability insurance can range anywhere from $200 to $1,500 per year, which breaks down to $17 to $125 per month. Your specific industry, amount of employees, and small business needs determine what coverage is best and how much it costs.
Who has the cheapest business insurance?
The cost of small business insurance for general contractors depends on the small business details and needs. One company may be the cheapest option for one person, but the most expensive for another. It is best to apply for several small business insurance quotes to better identify which provider and which coverage is most affordable for your small business.