Every business owner needs adequate insurance coverage for their company. General contractors' insurance and bond coverage help you protect yourself against unexpected events.
In the construction industry, there are endless potential risks. Instead of worrying about them yourself, it's best to hire an insurance company to help you figure out which ones are most relevant to your unique business.
Owning a business comes with plenty of costs. Protections like insurance and bonds are just as essential as the tools of the trade.
When you operate without a surety bond or liability insurance, you open yourself up to legal and financial repercussions. Many construction business owners worry about lawsuits due to property damage or personal injury. If a client trips over an extension cord or slips on a tarp, for example, that can potentially lead to litigation.
In addition to the legal risks of having to pay damages to another party, there's also the concern about equipment, vehicles, and damage to the construction project itself. Heavy-duty equipment is costly to buy and maintain, but the right insurance policy can ease that burden so your business won't be derailed if your truck or other vehicles suddenly break down.
Having the right insurance means you are covered when dealing with unexpected costs and litigation.
Bonds and insurance can make your company seem more reliable to existing and potential clients.
A $15,000 surety bond is a requirement for receiving a contractor's license. Surety bonds guarantee clients that your company meets legal standards for licensing, which means it meets the state's high standards.
Payment bonds ensure that your suppliers and any subcontractors will be paid for their work, giving them the incentive to work hard and put in their best effort. Contract bonds provide clients with compensation for construction work if it isn't completed in line with the terms set in the contract.
In other words, being able to show that you are licensed and insured increases your appeal to potential clients and can expand your customer base.
The cost of bonds and insurance will vary depending on a variety of factors.
First, your credit comes into play. Good credit shows responsibility and allows you to get a lower insurance premium. A history of other insurance claims will also affect the cost of your policy. The number of risks, the size of your business, and its location will also factor in.
Surety bonds usually cost between $150 and $500. Most bonds are set for a year-long term, but other options are available. General contractor insurance costs an average of $70 a month, with variations depending on how risky their specialty is.
Many companies choose to add other insurance policies to their coverage. Below, we'll cover some of the options contractors have.
Different types of insurance and bonds will have different costs. Your business may not need the same policies as a business down the street.
General liability insurance is considered essential for any business that wants to protect itself against liability for personal injury claims, property damage, and even libel. For small businesses, this is one of the first steps to becoming more professional and expanding your reach.
Workers compensation insurance is legally required for all companies that have employees on the payroll. There's also auto insurance and equipment insurance to cover your essential tools.
Before you start a large new project, you may want to check your coverage and even add protection to your policy. If you branch out from your previous contracting work, there may be new risks you face.
Finding an insurer who offers all the coverage you need can boost your business and help you on your company's journey.
There are countless insurance providers out there, so how do you find one who will cater to your needs? Stampede Insurance offers customized solutions tailored to your unique business needs.
We know that personalized service makes a difference, and our goal is to support your company and enable you to grow.
Speak with an expert insurance agent who will help you identify your most pressing insurance needs. Our team specializes in contractor's insurance, contact us at 888-306-7887 at Stampede Insurance Services today!