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How Much Does General Contractor Insurance Cost?

How Much Does General Contractor Insurance Cost?

If You Are a General Contractor Or Are Working With Contractors, You Need To Know!

Do know how much does general contractor insurance cost? If you are a general contractor yourself, or you a real estate investor looking to hire contractors, then this important information you should know.

How Much Does General Contractor Insurance Cost?

The amount that you will pay for insurance will vary significantly, depending on several different factors.  For example, if you are a general contractor - are your subcontractors insured or uninsured?  This matters because with uninsured subcontractors you will end up paying a lot in more in insurance than if they are insured.

In addition, if you are a real estate investor, and you are having work done on the property, then this automatically makes you a general contractor.  This would be another way in which your cost of insurance can differ.

Variables On How Much Does General Contractor Insurance Cost?

As showcased above, the type of insurance rates you will see will differ depending on the type of construction job that is being completed.  Insurance can cost $80 per week, or it can cost $100 per week.  This is why these variables greatly matter.

Looking to get insurance?  Don't worry, we make it easy to shop the most affordable insurance rates. 

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Does A General Contractor Need Insurance?

Does A General Contractor Need Insurance?

We Can Answer Why Does A General Contractor Need Insurance

Have you asked yourself the question, "Does a general contractor need insurance?"  This is most likely because you yourself are a general contractor yourself or you are a real estate agent  that is looking to consider this type of insurance for your employees.

In either case, back to the question:

Does A General Contractor Need Insurance?

The answer is not as complex as you might think, but does require some dissection.  The State of Texas does not require you to be licensed as a general contractor, but does require you to be bonded for special projects.  In addition, it is also important to consider the fact that while the State of Texas does require you to obtain general liability insurance workers' compensation is not required.

However, you still need to find insurance if you want to protect your assets.

Thus, a more important question would be:

Why Does A General Contractor Need Insurance?

As mentioned, to answer the question you would need to consider the way in which insurance would protect your assets.  For example, if you are a contractor and your subcontractor does not have insurance, and they get injured while on the job, then you would be held liable.

If you are real estate investor that is doing construction on the property, you are automatically a general contractor if you hire workers or artisans.

Thus, you need insurance. 

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Your Real Estate Investment Insurance May Be Affected By Building Components

Are Your Real Estate Investment Insurance Rates High?

Did You Know Your Real Estate Investment Insurance Rates May Be Affected By Building Components?

Have you gotten a Real Estate Investment Insurance quote that seems a little higher than normal?  Or, are you shopping for insurance rates and need  to know what the comparable rates might be?

Why Real Estate Investment Insurance Is Importance

You know that you NEED insurance, but why is it so important that you have it?  Because anything can happen!  If your real estate investment goes through a flood, and you later rent it out.  Will your tenant then complain of mold issues?  Insurance acts as a type of buffer to protect you and your assets.

That is also why it is important to get the best insurance rates possible.  The key is to keep rates low while still offering you viable protection.

How Building Components Affect Real Estate Investment Insurance

The construction elements of a building are extremely important when it comes to a real estate investment.  As previously explained, components such as the type of building (brick for example), plumbing, electrical, and other aspects of construction will all determine what insurance rates you might see.

The same is true for wiring.  Depending, on what type of wiring you have in your real estate investment property, you may be paying MORE for insurance?

That is because copper wiring has become the preferable industry standard. That means if you have aluminum wiring, then you may not even be covered for insurance, and if you are, you will pay out more in insurance.

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You NEED A Commercial Property Liability Insurance Quote If You Have These Building Components

You Need To Get A Commercial Property Liability Insurance Quote

A Commercial Property Liability Insurance Quote WILL Protect Your Investment

Getting a commercial property liability insurance quote is essential in protecting your investment.  That is because, construction Liabilities can really matter when it comes to insurance rates.   Thus, if you are a real estate investor, you need  to know all aspects of the structure of the property.

Why Do You Need A Commercial Property Liability Insurance Quote

Construction elements are essentially the building materials that went into the construction of your real estate property and will then determine what kind of insurance rates you will see.  This is because certain building elements, such as the type of plumping you have in your real estate home, can be rated higher or lower than others.

That means if something were to happen with your real estate investment property, then you may be held liable!

What Should You Consider When Getting A Commercial Property Liability Insurance Quote

Quite frankly, building components will  matter because they will determine what type of insurance rates you will see, no matter what the construction element is.

For example, a brick veneer building will warrant a better rating, as opposed to other types of building materials, especially depending on the masonry involved.  This is simply because some building construction materials are hardier than others, are more sustainable and long lasting, and essentially, are less prone to damage.

The same would be true of central heating, which typically rates higher and thus, offers you a more comparable rate. Other building elements that make an impact are the type of window units, plumbing, and so on.

It is important that you know what construction elements went into your building so you can get the best rate possible.

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Why General Liability Insurance Isn’t Enough

General liability insurance is, as the name suggests, extremely general.  It essentially covers the basic needs and requirements set forth between the insurance company, and as agreed upon by the policy holder.   Exclusions, then, are what would not be covered by  general insurance, and as such, could potentially leave the policy holder at risk.

Why Isn't General Insurance Enough?

As mentioned, general liability insurance only covers a specific amount, as set forth by the insurance company.  This would not cover any exclusions that might apply.  For example, if you are in the real estate industry and you want to flip a property and therefore need to hire a contractor, general insurance will not cover contractor lawsuits or injuries.  This is because you need a separate contractor liability insurance policy to ensure coverage.

In another example, if you are in the food and beverage industry and you sell liquor liability, then you may need liquor liability insurance, especially if you sell more than 50% alcohol.  General liability insurance simply may not offer coverage.  Thus, if you have a patron that leaves leaves your facility drunk, and then gets into a car accident, you may be liable.

What Do You Need Beyond General Insurance?

In short, general liability insurance is extremely broad and, as mentioned, it may not be enough to offer enough coverage, should a discrepancy occur.   This means that you need specific additional coverage that would maintain coverage for your specific industry.  As mentioned, if you are in the food and beverage industry, you may need liquor liability and so forth.  No matter what commercial industry your business resides in, we can find the right insurance for you.