Cost Of Liability Insurance For Independent Contractor – For some businesses, the price can be as little as $11 per month or $128 per year, but the exact price you’ll pay depends on the location and operations of your business.
Your general liability insurance policy can help cover costs if you have a claim related to an injury to a non-employee (called personal injury) or damage to property you do not own.
Cost Of Liability Insurance For Independent Contractor
If you own a retail business or work in the professional services industry, your business insurance policy may be less expensive than a construction contractor’s. This is because high-risk businesses may be more likely to face claims related to personal injury and property damage.
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Contractors work on other people’s property, build structures, and use expensive equipment. They face more risks in their day-to-day business activities than many other professions.
If you own a hair salon and employ seven people, your insurance may cost more than a self-employed hairdresser.
Small business owners in New York may pay more for insurance than business owners in Wyoming.
This is partly because different countries have different rules, and partly because insurance costs are sometimes higher in densely populated areas where more property claims occur.
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For example, if you are a lawn care business and previously had an insurance claim related to property damage, you may see an increase in your premium at renewal time.
You can choose a higher coverage limit if you want more financial protection. Higher limits almost always increase the amount you pay for insurance, but you may end up paying less out of pocket in the event of a claim.
For example, if you are an electrician with 25 years of experience and no claims, you can expect to be paid less than an electrician who has been in business for two years and has an insurance claim.
Notes. When you receive a business insurance quote, it is important to provide the most accurate information about your business to ensure proper coverage and no delays in claim processing.
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Insurance companies calculate your premium by taking into account all the factors listed above, such as how likely you are to file a claim and how many employees you have.
NEXT makes it easy to get affordable business insurance—and it’s reliable, too. We tailor your coverage to fit your business needs and operations. After you answer a few questions using our instant online quote process, we’ll share pricing options for your business.
You can get detailed information in minutes, and licensed consultants are ready to help if you need it.
So what is the average cost of general liability insurance? Here are the average monthly liability insurance premiums for various professions:
General Liability Insurance Quote
General liability policies have per-claim limits (also known as “per-occurrence limits”) and aggregate limits (the maximum amount of coverage during the policy period, usually one year).
For example, let’s say you have a general liability policy with a limit of $500,000 and no deductible. You have a one-time damage claim to our client’s home that will cost $600,000 to settle. This means you will have to pay $100,000 out of pocket.
If you want higher protection against damage and incidents, you will need a higher coverage limit on your insurance policy, which means you will also pay more for the policy.
The right amount of cover for your business depends on your individual needs and how comfortable you are with financial risk.
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A safety and training plan can help limit the chances of a claim being filed and the cost of your policy increasing.
For example, your ladder is not tall enough and collapses when you are on the top step. Fortunately, you were not injured, but the ladder flew out the window. The next time you can use scaffolding or a tall ladder.
A lower limit will save you money, but you’ll face a bigger financial loss if you don’t get enough coverage. And if you choose a higher deductible, you can pay less for your policy (deductible is the amount of money you pay before your insurance policy goes into effect).
In addition to risks covered by general liability insurance, many businesses require more than one type of business insurance.
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You can save up to 10% when you buy more than one type of business insurance with NEXT. Insurance packages often include a combination of general liability and:
For example, if you add workers’ compensation coverage to your general liability policy, you can immediately save 10%.
General liability insurance can also be combined with commercial property insurance in what is called a business owner’s policy (BOP) for additional savings.
It only takes a few minutes to get a fast, personalized and affordable option for your business when you start instant online quoting with NEXT.
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We will ask basic questions about how you run your business and use them to create a customized insurance quote.
You can adjust limits and add additional recommended coverage. If you decide to buy, you will be covered as soon as you pay and will have instant access to your insurance certificate.
You can get insurance through NEXT without ever contacting an agent. But if you have questions, our US licensed insurance advisors are ready to help.
There’s a lot to love about NEXT. Get coverage in less than 10 minutes and save up to 25% off * Unique and flexible coverage with convenient monthly payments. Do it all 100% online or speak with a US licensed consultant. Get an instant quote.
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*To the extent permitted by law, applicants register individually; not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and rebates are available where permitted by state laws and regulations and may vary by state. Certain discounts only apply to certain coverages.
**Cost data provided here is based on NEXT’s active US customers who purchased general liability insurance in the previous 12 months. This information should not be considered a substitute for obtaining a custom quote for your business. This data was updated in July 2022. Construction companies and contractors can save money on business insurance by comparing quotes from different providers and. Your premium depends on your policy type, coverage limits, deductibles, and factors such as your business location and number of employees.
Our figures are based on the average cost of policies purchased by customers. The median provides a more accurate estimate of what your business is likely to pay because it eliminates premiums that are too high or too low.
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You know your small business needs insurance, but where to start? And how can you cut costs?
Most small businesses start with a general liability policy. You can combine property insurance and liability insurance for a discount of $57 per month.
Construction businesses and contractors pay an average of $80 per month or $960 per year for general liability insurance.
General liability insurance provides financial protection against public customer lawsuits. It can cover costs if someone sues your company for personal injury, property damage, or copyright infringement.
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Small businesses can often save money by combining general liability insurance with commercial property insurance in a business owner’s policy (BOP).
The cost of general liability insurance depends on factors such as the coverage limit you choose, the size of your business, the amount of foot traffic, and whether there are subcontractors or additional insured endorsements.
The cost of general liability insurance depends on your risk of a client lawsuit. Among construction businesses and contractors that purchase general liability insurance, 20% pay less than $50 per month, and 61% pay less than $100 per month.
Businesses that interact with many customers and have a greater risk of accidents usually pay more for general liability insurance.
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For example, roofers can expect to pay more for general liability insurance than mechanics and other low-risk tradesmen. The average monthly cost for a roofer is $267, and the average monthly cost for a plumber is $42.
Other factors that affect your insurance premium include business income, building maintenance, years of use and location. As you can see, the cost varies significantly depending on the profession.
The policy limit is the maximum amount your insurance company will pay for a covered claim. The per-occurrence limit is the most your insurer will pay for one incident, and the aggregate limit is the most your insurer will pay on all claims during your policy period, usually one year. Higher limits cost more and provide better coverage.
Most contractors and construction businesses (97%) choose a general liability insurance policy with a limit of $1 million per occurrence and an aggregate limit of $2 million. As your small business grows, you may need to expand your policy limits.
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Find out how to save on your policy, which coverage limits to choose from, and more on our general liability insurance cost analysis page.
Construction and contractor businesses pay an average of $98 per month for a business owner’s policy, or $1,173 per year. Most chose PB with a limit of US$1 million per event and an aggregate limit of US$2 million.
BOP combines general liability insurance with commercial property insurance discounts. Provide financial protection from
