Sole Proprietor Affordability
Online Quote Process
General contractors in the construction industry can benefit from general liability insurance. This policy protects the business and its employees from claims made against them for bodily injury and property damage that occurs from their work. We determined the best general liability insurance for contractors using criteria including affordability, financial strength, customer satisfaction and the online quote process. Our top picks are The Hartford and Nationwide.
The Hartford earns the distinction of best general liability insurance for general contractors, earning the highest MoneyGeek score of all carriers we assessed. This insurer has the cheapest average rates for general contractors in the construction industry and has superior financial stability and high customer satisfaction ratings. We also highlight five other lower-ranked companies providing general liability insurance for contractors.
The Hartford has the lowest general liability insurance cost for contractors of all the companies we analyzed, especially for LLCs.
The company has strong customer satisfaction and financial strength scores. However, compared to other companies, The Hartford has a slow online quote process. Online quotes may not be available nationwide. The Hartford offers other types of business insurance general construction contractors might consider, like business income insurance, commercial auto and property insurance and workmans’ compensation for businesses with employees.
Nationwide is another affordable option for sole proprietor and LLC-structured general contractors.
It has few customer complaints and superior financial strength to pay claims. But Nationwide has the slowest quote time of all company picks, so may not be the best choice if you need a fast quote. We also could not get online quotes in Alaska, Hawaii, Louisiana, New York or Oklahoma. Besides general liability insurance coverage for contractors, Nationwide offers surety bonds, inland marine for tools and equipment, commercial property and auto, workers’ compensation and commercial umbrella coverage.
biBERK — part of the Berkshire Hathaway Insurance Group — offers affordable rates for sole proprietors, though it lacks quotes for general contractor LLCs.
It also has strong financial stability to pay its obligations, including claim payouts. biBERK may not be available where your business is located, however, because it only offers general liability coverage in 27 states. It also has a long online quote process, though not as long as Nationwide’s. Depending on where you are in the country, you may be able to also buy worker’s compensation, professional liability, commercial auto, business owners’ policy or commercial umbrella policies from biBERK.
Hiscox has strong financial stability and customer satisfaction scores, making it a good contender for general liability insurance coverage for contractors.
It offers fast quotes online with affordable rates for sole proprietor general contractors, but no online option for LLCs. Hiscox only offers online quotes to contractors depending on employee count and business structure. We could not get online quotes in Alaska, so general contractors there may need to speak with an agent for a quote. Contractors can also purchase professional liability and business owners policies (BOP) through Hiscox.
Thimble offers the fastest online quote time of all companies and is widely available nationwide. It offers online quotes in every state, plus the District of Columbia.
General contractors can also get commercial auto and property insurance, workers’ compensation and business equipment protection policies through Thimble. It also has a strong financial stability rating. Thimble isn’t the most affordable option, and it has a low customer satisfaction score compared to competitors. If these factors are important, it may be best to get quotes from the other insurance companies offering the best general liability insurance for contractors.
Next offers another option for general contractors with a fast online quote process that is available in almost all states. We could not get quotes online in Maryland or New York.
It offers several other policy options for general contractors, including workers’ compensation, BOP and commercial auto insurance. However, its general liability for contractors policy comes at a high cost for both LLCs and sole proprietors. Next also has high customer complaints, giving it a low customer satisfaction score.
The average general liability insurance cost for LLC contractors in the construction industry with 20 employees is $36,746 per year, or $3,062 per month. For sole proprietors with no employees, the average annual cost is $2,422, or $199 monthly.
There are several factors that determine general liability insurance costs for contractors, including:
General liability insurance for contractors protects against several types of claims for attorney fees, damage or medical expenses, including:
Many clients will require contractors to have general liability coverage in place prior to starting a project. Having general liability insurance in place before submitting an offer for work can also benefit your business by helping you outbid competitors.
There are several types of claims that general liability insurance for contractors won’t cover, which include:
Although there are gaps that general liability insurance can’t fill, contractors wishing to cover these types of scenarios can purchase additional business insurance policies to provide coverage for these types of claims.
General liability insurance for contractors provides coverage against bodily injury, property damage and reputational harm claims. But to cover additional risks, contractors should consider additional business insurance coverage options.
Some policies to consider are:
Most contractors can benefit from general liability insurance. These answers to the most common questions on general liability insurance coverage for contractors may help you decide if this policy is right for your business.
About Mandy Sleight, Licensed Insurance Agent