General liability insurance is essential for doing business; it can protect you financially in the event of a customer’s or third party’s bodily injury or property damage.
As a contractor, you can also purchase an optional endorsement, an addition to your overall general liability policy.
Why You Might Need Contractors Insurance?
As an independent contractor, there are several reasons and you should purchase a contractors insurance policy.
1. You might be legally required to carry general liability insurance.
Some industries, such as construction, are required by law to carry general liability insurance.
2. Your clients may require that you have coverage.
It’s common for a client to require a contractor to have general liability insurance. This protects them if they’re held responsible for accidents or transgressions caused by your work.
3. General liability insurance protects your business as well as you personally.
Regardless of how small or large your contractor’s business is, you run the risk of being sued for property damage, bodily injury or even financial loss resulting from advertising you generated. General liability contractors insurance can help cover any legal fees and damages due to a lawsuit.
How Much Does It Cost to Buy General Liability Contractors Insurance?
Typically, general liability insurance costs $500 to $600 on average. That said, many factors go into how much your policy will cost:
- The industry
- How many customers you have
- How long you’ve been in business
- Your annual revenue
- Your claims history
Depending on your industry, your annual contractors liability insurance can cost from $380 to $1,380. One set of estimates of how much a $1 million general liability policy costs according to industry indicates that, while a small retail store on average would pay approximately $750 a year, a cable or satellite dish installer might pay $550 annually while a computer repair service would pay about $400 annually.
Find Out How Much Your Liability Contractors Insurance Will Cost
Shop around before purchasing your liability insurance. Use EINSURANCE’s quote generator to receive quotes from a variety of providers for general liability insurance for contractors as well as other types of small business coverage.