I need a general liability coverage for construction company?

Question

This will be a new startup and no work comp. right now .Just like a $250,000 policy

Answer 1

Well, the cost for $250,000 limit (btw, it doesn't COME in that amount, it's $100k, $300k, $500k or $1,000,000) isn't going to be much less than $1,000,000. And anyone you do work for, ie, if you have to provide a certificate of insurance, they're going to require $1,000,000.

You're going to have to go to a local agent to do this. If you have no WC, ie, you sub out 100%, expect it to be VERY EXPENSIVE. Even if you don't sub out at all, it will be VERY EXPENSIVE. It's going to be based on either gross sales or payrolls, and the type of work - new or remodel? commercial or residentail construction?

Expect to pay the premium in full. Contractors are NOTORIOUS for stiffing insurance companies for the premiums.

Minimum premium for this can be anywhere from $5,000 to $50,000 for the first year, and it WILL be auditable.

Answer 2

A $1,000,000 liability policy isn't going to cost much more than a $250,000, also if you ever work for a general contractor they will require at least a $1,000,000 anyways, so the better buy is to go ahead now and buy it. Also you should get hired/non-owned liability coverage attached to the general liability policy.

I would suggest contacting a local independent agent, they'll find you good coverage with a good company and most likely be able to do it at a good price.

Find a good local independent agent at: www.trustedchoice.com

Good Luck.

Answer 3

I shopped around for the best rates for my business when I leased an office that required a policy. Normally a business policy minimum liablilty is 1 mil. I found that Hartford Insurance company was the most reasonable at around $600 annual premium. It may be more for construction though as I am in the gift business with no clients coming to my office. The price tag will depend on equipment used and interaction with the public. If you are thinking about leasing anything, equipment, office, etc. I would look into their insurance policy requirements before you start looking around so that you have a better understanding of the minimum that you will need.

Answer 4

if your going to have employees you will need to have workers comp. every state requires it. also i would go with at least a million on general liability. if someone gets hurt and you dont have enough insurance to pay for any law suit, they can go after your personal assets and you could be paying the law suit for the rest of your life!!!

Answer 5

There are some good answers here. Most brokers won't write less than a million of GL. What state are you from? Check out InsureMyWork.com for a list of brokers that can help you.

Answer 6

Contact an insurance company.