Demolition Contractor Insurance

Demolition contractors typically need a license and permit to comply with state laws and local regulations. To obtain them, you usually need to be bonded and insured, and also submit a plan for waste management or debris removal.

Here are several examples of what you might need:

• Business license. To form a business, you'll need to get a business license and register with your local government.
• Contractor's license. In most states, you'll need a contractor's license to do demolition work. You'll likely need to be a certain age, have a specific amount of experience, pass an exam, pay a fee, and show proof of insurance or a bond.
• Demolition permit. Demolition contractors will need a permit from their local building department before demolishing a structure or removing part of it, like a garage or pool.
• Additional permits. You might also need permits for work that involves hazardous materials, equipment that releases pollutants, or excavation, all depending on your local regulations.

Even when it's not required, a license or certification can help elevate your business above the competition when trying to get a contract or win a bid.

For example, you could get trained as a Certified Demolition Technician (CDT) or a Demolition Supervisor (CDS) through the National Demolition Association (NDA).

Factors that underwriters consider when calculating the cost of demolition insurance include:

• Business size. In general, bigger businesses are more likely to make a claim on their policy, so they will cost more to insure.
• Annual revenue. Companies with higher annual revenues are associated with more frequent claims and pay higher premiums.
• Number of employees. When you have more employees, there's an increased risk of a worker getting injured or causing an accident.
• Project type and scope. Whether you take on larger projects like total demolition or smaller projects like interior demolition will also affect your premium.
• Location. Demolition projects in areas with a lot of foot traffic will cost more to insure, as will projects in areas with expensive property values or high crime rates.
• Tools and equipment used. Your insurance premiums will vary depending on whether you use heavy machinery, small manual tools, or explosives for demolition.
• Policy limits and deductibles. You can save money on your premiums by opting for higher deductibles or lower limits, but make sure you have enough protection to cover a costly demolition insurance claim.
• Years of experience. Experienced contractors who have learned how to do their job safely and professionally will cost less to insure.
• Claims history. If your business has demonstrated a strong safety record and has a clean history of claims, you can expect lower insurance rates.

Demolition contractors often rely on other types of construction insurance as part of a comprehensive risk management strategy:

• Commercial property insurance covers your office and its contents, including computers, furniture, and equipment stored at your business address. If you don't have an office, you can buy business personal property (BPP) coverage to protect the items that belong to your business instead.
• Inland marine insurance protects business property that travels to jobsites, including your demolition equipment. It also covers items in transit and stored off-site.
• Products-completed operations coverage covers any harm that arises from your demolition project after your business has left the site, such as water damage from a leaking utility pipe.
• Contractors pollution liability insurance pays for cleanup costs and legal fees related to pollution, such as asbestos exposure or runoff from a demolition site.
• Commercial umbrella insurance activates to provide coverage when your underlying general liability insurance, commercial auto insurance, or employer's liability insurance policy reaches the limit on a claim. You can also buy excess liability insurance to boost a specific policy, usually general liability or professional liability insurance.

Our insurance agents can help you find the right policies for your risks and answer any questions about coverage.