Remodeling Business Insurance

General liability insuranceis — generally speaking — one of the most important insurance policies for remodeling contractors.

Some of the risks general liability insurance covers are:

• Bodily injury
• Property damage
• Medical payments
• Legal defense and judgment
• Personal and advertising injury

Several other types of business insurance are likely to be needed by your remodeling business, including:

• Workers' compensation insurance:Provides financial assistance to employees who are injured on the job.
• Professional liability insurance:Protects you from claims of negligence or errors in performing the contractor's duties.
• Builder's risk coverage:Covers any damage or loss sustained during construction, including theft or vandalism of materials and equipment.

When it comes to where your remodeling business can acquire insurance from, there are two main options:

• Brick and mortar agencies:These firms, such as The Hartford and Nationwide, tend to operate out of physical storefronts and use insurance agencies. This naturally leads to higher insurance premiums due to the greater operational costs this approach incurs.
• 在线保险公司:Contrastingly, by operating entirely online, firms such as Tivly and Next are able to take advantage of lower operational costs in order to charge their customers far lower premiums.

The average remodeling company in America spends between $500-$1,500 per yearfor $1 million in general liability coverage.

Compare the average cost of general liability insurance for a remodeling business to other professional industries using the graph below:

Several factors will determine the price of your policy. These include your:

• Location
• Deductible
• Number of employees
• Per-occurrence limit
• General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of abusiness owner’s policy (BOP)rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most commontypes of coverage:

商业地产Insurance

Commercial property insurance will help cover the cost of damage to company-owned buildings, equipment and supplies caused by events like a fire or vandalism. Your remodeling company will need this coverage if it owns a showroom or office, and you’ll still want coverage for equipment even if your company doesn’t own a building.

The equipment that remodelers use is often specialized and expensive. Make sure your company’s property insurance protects against the full value of your company’s equipment.

Commercial property insurance comes as part of a business owner’s policy (BOP).

Professional Liability Insurance

专业人士在寡糖应用知识或技能r work may be held responsible for any mistakes they make. Professional liability insurance usually covers lawsuits arising from errors in work.

When selecting professional liability policy, look for one that’s tailored to your company’s particular type of remodeling work. Policies frequently have specialized protections, and you’ll want the protections that are most relevant to your company’s work.

Professional liability insurance comes as part of package policies and on its own.

Workers’ Compensation Insurance

Your remodeling company will have to carry workers’ compensation insurance if it has employees. This insurance covers work-related injuries, which are common in the remodeling and construction industries. States generally require businesses that have employees to carry the coverage.

While your company must cover employees with workers compensation, independent contractors and subcontractors usually don’t legally have to be covered by your company’s policy.

Commercial Umbrella Insurance

When liability lawsuits are greater than the limits of underlying policies, commercial umbrella insurance provides additional protection. If you’re concerned about potentially expensive liability suits and claims, this insurance can provide robust protection at a highly affordable price.

Commercial umbrella insurance comes as part of package policies and on its own.

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your remodeling business:

• Use legally robust contracts and other business documents. (We offer free templates for some of the most commonlegal forms.)
• Set up an118bet金博宝 or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to金宝搏188是什么公司orcorporationin your state.)
• Stay up to date withbusiness licensing.
• Maintain yourcorporate veil.