Like many business categories, contractors have specific needs when it comes to insurance. Business owners need to protect their assets and company against loss and liability, and many states make maintaining proper insurance coverage a requirement for obtaining and keeping a contractor’s license.
Are you familiar with the different categories of business insurance recommended for contractors and where to find the best coverage? General Contractor License Guide is here to help with an in-depth Next Insurance review.
Next Insurance is a newer, modern company that uses AI technology to improve customers’ experience, and it’s taking the business insurance industry by storm. Let’s see if this tech-savvy insurance company is a good fit for your business’s needs.
Get a FREE insurance quote below from NEXT:
Who Is Next Insurance?
Established in 2016 by three former small-business owners, Next Insurance provides insurance tailored to meet the needs of a wide variety of small business types and the self-employed. Customers can get quotes, purchase and manage policies, share certificates of insurance, and submit claims online.
Because Next is a growing company, it continues to add types of coverage and other options regularly. Speak to a licensed Next agent if you have questions about current or future coverage.
Next focuses on providing tailored insurance policies for small businesses. Even within the same industry, different companies have their own needs. That’s why Next allows customers to customize their policies to meet specific requirements without buying unnecessary coverage.
This company is a good fit for those who prefer to do their business online. Customers can conveniently access Next through a mobile app or a browser, allowing increased flexibility.
Next’s approach to insurance is somewhat revolutionary. The company uses technology to power many processes, streamlining its service and eliminating overhead. This allows Next to offer lower rates than some competitors while providing accurate, fast solutions to your insurance needs.
Types of Commercial Insurance Offered
Contractors need several types of insurance coverage, and Next has you covered. You can purchase these policies separately, but Next Insurance for contractors offers a discount for bundled policies. Discount and savings amounts vary and are available only where state regulations and laws allow.
Business Owner’s Policy
Next Insurance offers a business owner’s policy, a bundled package that includes commercial property and general liability coverage. The price is generally less than if you buy these policies separately. We explain these policies farther into this Next Insurance review.
Commercial Auto Insurance
Contractors travel to various job sites, and their vehicles should have commercial insurance coverage. In most states, licensed contractors must carry this coverage for all company-owned vehicles.
In cases where you or your employees occasionally use personal vehicles for business purposes, you’ll need a commercial policy. You can also purchase hired and non-owned auto insurance for more flexibility.
Commercial Property Insurance
Even if you don’t own the property that houses your business, you’ll benefit from this coverage. It protects against various losses in four basic categories:
- Buildings: If you own your commercial real estate, this policy may cover repair costs if damage occurs.
- Business Income Interruption: If a covered event forces you to close your business temporarily, this coverage can help you with related expenses and lost income.
- Equipment Breakdowns: Power surges or mechanical failures can damage your equipment, and you probably can’t complete jobs without it. This protection can assist with expenses incurred because of this type of incident.
- Goods, Gear, and Inventory: Business personal property includes your inventory, furniture, and equipment. If you suffer losses caused by a covered event, your BPP claim can help your company recover.
Errors and Omissions/ Professional Liability Insurance
Many business owners choose to purchase this type of coverage to protect against certain kinds of accusations:
- Failure to deliver on contracts or business agreements
- Professional negligence
Responding to accusations, whether you’re guilty or not, requires financial resources and potentially significant amounts of time. This coverage assists you in lessening your out-of-pocket expenses and risk of business disruptions.
Most businesses maintain general liability coverage to protect against a variety of losses:
- Advertising injuries
- Defense costs and legal fees
- Medical payments
- Property damage
- Reputational harm
- Slip-and-fall injuries
If someone sues you for any of these damages, you can face significant financial losses without general liability coverage. Many jobs require construction companies to have this coverage because of the higher risk of damaging property and injuries occurring.
Tools and Equipment Insurance
Whether you’re a general contractor or specialized, you rely on many kinds of equipment and tools to get the job done. This add-on policy to Next Insurance for contractors covers losses from damaged or stolen equipment belonging to you or that you borrowed from someone else. It protects your gear regardless of where you store it, whether at a job site, your company headquarters, or a vehicle.
Workers’ Compensation Insurance
State laws governing the need for workers’ compensation insurance vary, so be sure that you adhere to your state’s requirements. Bids on some jobs require contractors to carry a workers’ comp policy.
Even if those conditions don’t apply to you, remember that construction workers are at high risk for workplace injuries. Workers’ comp covers:
- Employer liability
- Medical expenses
- Lost wages
- Permanent injuries
- Survivor benefits
Without workers’ comp coverage, your company may be liable and face significant financial losses if an employee suffers injuries while at work.
Other Types of Policies Next Insurance Offers
Although Next Insurance for contractors has multiple policies that these businesses and other tradesmen need, the company also sells additional coverage:
- Hired and non-owned auto
- Liquor liability
- Product liability
Next Insurance offers policies for more than 2,500 business categories, including:
- Amazon and other online sellers
- Beauty service providers
- Cleaning services
- Food and Beverage
- Real Estate
You can find coverage easily on Next’s site with three search options. Start with your business type, the coverage you’re looking for, or the industry your company is in.
Next’s Quote Process
If you’re interested in Next Insurance for contractors quotes, you can complete the process entirely online. However, you can also receive support by phone or via U.S.-based live chat.
You’ll begin by creating an account to initiate the online insurance interview. This short process will ask for pertinent information, including topics like business details, your state of residence, and profession.
You will receive instant quotes for commercial auto, general liability, property, and workers’ compensation coverage. You can modify these and add additional policy types if you prefer.
Learn how to request a free quote for commercial insurance here.
Is Next Insurance Legitimate?
Next Insurance is a young but legitimate company. It has a Better Business Bureau accreditation with an A rating. AM Best, the world’s largest insurance industry credit rating agency, rates Next at A-.
The AM Best scores indicate that Next Insurance is financially stable and able to pay claims. The BBB gives accreditation only to companies meeting certain standards and that are “committed to make a good faith effort to resolve any customer complaints.”
What Customers Say
Although you can get a good idea of how customers rate various companies by average review scores, it’s also helpful to read customer reviews. Personal details can give you a better understanding of how companies work and interact with their clients.
“Professional and great customer service!! Next has been great to work with. They are quick to respond to any inquiry I have had and the claims department can’t be beat!! Thanks Next for always being there when I have needed you!!” 4/19/2022
“Great cheap general liability insurance! I run a small craft shop out of my house and I sell at craft fairs and whatnot and they need you to have general liability insurance. It was so easy and simple to get it set up as well as add a third party, everything can be done online and on the app and their basic general liability insurance is SUPER cheap, only $25 a month. Highly recommend for any small business owner.” 7/13/2022
Some customers have complaints as well:
“Would prefer other payment options, like making my own payment monthly, rather than being required to agree to auto draft. I do not auto draft anything.” 9/30/2022
Pros and Cons
As with any product, a thorough Next Insurance review shows both pros and cons.
- Fast and easy online quotes
- Easily shared digital certificate of insurance available
- User-friendly website
- Option of handling your business with or without the assistance of a licensed agent
- Transparency about policy exclusions
- Lacks some specialized types of policies like key person insurance
- No personal insurance options
- Unavailable in some states
The younger generation and those familiar with using modern technology likely find the 100% digital process of Next Insurance for contractors a plus. In contrast, it may not be a good fit for others for the same reason.
When researching companies you’re considering doing business with, it’s a good idea to read customer reviews and look at their ratings. Different sources have varying average review scores for Next Insurance:
- Better Business Bureau: 62 reviews, 3.16/5
- Comparisun: 1,839 reviews, 9/10
- MoneyCrashers: 4.6/5
- Trustpilot: three reviews, 2.8/5
According to the Next site, the company received 4.8/5 from 3,803 reviews. It’s important to note that the BBB and Trustpilot reviews appear to be solely from disgruntled customers, and that the average score might increase if satisfied customers also left reviews.
You can find Next’s responses to complaints on many sites, so be sure to read those as well.
What to Expect
If you’re considering Next Insurance for contractors, you’ll want to know what to expect from the company before deciding to purchase a policy. We’ll highlight some of the most important areas.
As with any insurance company, several factors affect the rates you’ll pay with Next:
- Amount of coverage
- The type of business you’re in
- Number of employees
- Your location
- Your company’s physical assets and personal property
- State regulations
- Policy limits
Those in low-risk industries like online sales typically won’t pay as much as higher-risk customers, including contractors.
Next Insurance rates are affordable, providing a good value for your premiums. Next boasts that you can receive rates discounted up to 25% and choose monthly payment options at no extra charge.
You can contact Next Insurance’s customer service via live chat during the posted business hours. Reach them by phone at 855-222-5919 or by emailing them. Many verified customers report that Next’s customer service is highly professional.
If you have a claim against a Next Insurance policy, you can submit it and all relevant attachments online. According to Next, the company investigates claims as soon as it can, mainly using in-house claims adjudications.
Next Insurance states that they decide many claims in 48 hours or less. Some customers report issues with making claims, but others say that the claims process with Next is a breeze.
Alternatives to Next Insurance
General Contractor License Guide recommends getting quotes from multiple insurance companies to ensure that you find the best policies at the best rates for your business. In addition to Next Insurance for contractors, we also rate these alternatives highly:
When you compare policies from different companies, be sure to compare apples to apples. Each policy should have the same limits, deductibles, and exclusions to get an accurate result.
Still trying to figure out which insurance option will be the best for your business? See our list of the Best Insurance Companies for Contractors and Trades.
Point of Interest
Amazon, the online retail giant, offers its Amazon Business Prime members the opportunity to get small business insurance quotes. Next Insurance is in partnership with Amazon to supply quotes and sell policies to these members.
“We know that small business owners are looking for innovative and cost-effective ways to streamline their businesses and save time, and that’s what this partnership with Next Insurance helps achieve,” said Amazon Business Prime director Todd Heimes.
“We are proud to continue to be chosen by top companies, like Amazon, who understand the best way to serve small businesses is through digital solutions,” said Guy Goldstein, Next Insurance CEO.
Bottom Line for Contractors
You must protect your business, and buying insurance from a reputable company at reasonable rates is smart. Next Insurance for contractors is a great option for most because of the easy online tools, access to U.S.-based licensed agents who can assist you with any questions or concerns, and its dedication to helping customers succeed.