General contractor insurance in New York
Learn about business insurance requirements and the most common policies for general contractors in New York.
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What are the most common policies for general contractors in New York?
General contractors may need different types of insurance depending on the work they do. These are the most popular insurance policies for New York general contractors to protect against financial losses.
General liability insurance
A general liability policy covers basic risks, such as a client who is injured on your jobsite. Bundle it with commercial property insurance for savings in a business owner's policy.
- Customer bodily injuries
- Damaged customer property
- Advertising injuries
Business owner's policy
A BOP bundles general liability coverage and commercial property coverage at a discount. It's often the most cost-effective type of insurance for general contractors.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Workers’ compensation insurance
New York requires workers’ comp for general contracting businesses with employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Employee injury lawsuits
Commercial auto insurance
This policy covers the cost of injuries and property damage in accidents involving a general contractor’s vehicle. It can also pay for repairs to vehicles damaged by weather or vandalism.
- Legal costs from an auto accident
- Property damage caused by your vehicle
- Vehicle theft and vandalism
Inland marine insurance
This policy helps pay for repair or replacement of a contractor’s saws, nail guns, hammers, and other tools if they're lost, stolen, or damaged. It's also called tools and equipment insurance.
- Hand tools and power tools
- Scissor lifts and other equipment
- Other items brought to worksites
Professional liability insurance
This policy is also called errors and omissions insurance (E&O). It covers legal fees when a general contractor is sued over a mistake, such as using the wrong materials.
- Accusations of negligence
- Failure to complete a project
- Work mistakes and oversights
Contractor surety bonds
A bond guarantees reimbursement for the client if a contractor fails to fulfill the terms of a contract or adhere to building codes. Common bonds include bid, performance, and payment bonds.
- Compliance with laws
- Incomplete jobs
- Breach of contract
Builder's risk insurance
This policy covers structures in progress and materials, often paying for damage caused by fire, vandalization, and non-severe weather events.
- New construction
- Building renovation
- Worksite theft and vandalism
Contractors pollution liability insurance
Contractors pollution liability covers costs related to pollution, such as a lawsuit alleging harm caused from exposure to silica dust on a construction job site.
- Pollution events
- Spills during transport
- Lawsuits over contaminants
What insurance is required for general contractors in New York?
General liability insurance
General liability insurance is often the first policy that most general contractors purchase. It covers accidental damage to client property, as well as client injuries.
Many New York cities and counties require proof of general liability insurance before they will allow general contractors to obtain a license.
Commercial landlords, clients, and lenders in New York City and other locations may also ask to see a certificate of insurance proving you have this liability coverage.
Adding commercial umbrella insurance can boost your coverage on general liability insurance and other policies.
Workers' compensation insurance
To meet state requirements in New York, general contractors with employees must provide workers’ compensation insurance, which covers lost wages and medical bills for work injuries.
This includes companies that are headquartered in other states but operate in New York. It also includes part-time employees.
Workers' comp is not required for sole proprietors in New York if they do not have any employees. However, it is strongly encouraged, as personal health insurance often will not cover work-related injuries.
Commercial auto insurance
Commercial auto insurance protects vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.
Businesses in New York are required to carry commercial auto insurance for company-owned vehicles. Leased, rented, and personal vehicles used for work purposes must be covered by a hired and non-owned auto (HNOA) insurance policy.
Construction business owners in New York must carry a minimum of:
- $10,000 in property damage liability per incident
- $25,000 in bodily injury and $50,000 for death of an individual involved in an accident
- $50,000 in bodily injury and $100,000 for death of two or more people involved in an accident
If you plan on transporting expensive equipment to and from construction projects and construction sites, you may want to consider purchasing inland marine insurance.
Surety bonds
Licensure requirements in New York sometimes include a surety bond, depending on your location and the type of work you do.
A surety bond guarantees reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.
How much does insurance cost for general contractors in New York?
General contractors in New York who buy policies from Insureon pay an average of:
General liability: $115 per month
Workers' compensation: $329 per month
Commercial auto: $267 per month
Several factors affect the cost of general contractor insurance, including:
- Type of building construction, such as townhouses, multi-family homes, or offices
- Business property and equipment
- Business income and size
- Claims history
- Years of experience in the construction industry
- Policy limits and deductibles
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When do you need a general contractor business license in New York?
New York general contractors are required to carry a general contractor license, also called the home improvement contractor license, throughout much of New York State.
Each county and city handles licensing differently, so it's important to check with the region where you plan to operate for the most specific requirements.
Many counties have similar requirements, which often include:
- Passing a written exam
- A certificate of liability insurance, though the amount of coverage required will vary
- Workers' compensation coverage if you plan on employing contractors or subcontractors
- A license and permit bond
- An application fee
- Letters of reference
- Proof of business address
- A sales tax ID number
- Certification from the U.S. Environmental Protection Agency (EPA)
Because licensing is done at the city and county level, a contractor in NYC will have significantly different requirements than someone in Buffalo. Check with your local licensing agency for the most accurate and up-to-date requirements for your region.
How do I get New York contractors insurance?
Insureon helps general contractors in New York save time and money shopping for liability insurance policies by comparing coverage from top U.S. insurance companies.
Our insurance agents are licensed in New York and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number of employees and subcontractors
- Current and projected revenue
- Desired coverage limits
- Claims history
- Commercial lease insurance requirements
Apply for free insurance quotes for general contractors today. We can work with you to identify and purchase the best types of insurance policies for your construction business. Most small business owners receive a certificate of insurance (COI) on the same day.