Learn about business insurance requirements and the most common policies for general contractors in New York.
Depending on the specifics of your work, general contractors may be required to hold several different types of business insurance. For example, if your business owns a vehicle, you likely need to purchase commercial auto insurance to meet state requirements.
If you have a physical location with a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by general contractors in New York, general liability insurance can protect your business from expenses associated with common mishaps, such as customer property damage and injuries.
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.
General contractors may need different types of insurance depending on the work they do and their client contracts. In New York, general contractors often buy these policies.
General liability insurance is the foundation of a general contractor’s protection. It covers accidental damage to client property, as well as client injuries. Commercial landlords, clients, and lenders in New York City and other locations may 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.
General contractors who work independently or own a small company often qualify for a business owner’s policy (BOP). This policy bundles general liability coverage and commercial property insurance together at a discount.
A BOP is the top policy recommended by Insureon's expert agents, as it offers protection against common liability claims and business property coverage at an affordable price.
If you own a construction or home improvement business in New York that has employees, your business is required to carry workers’ compensation insurance. Workers’ compensation can help pay for medical bills and lost wages when an employee is injured on the job.
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.
Professional liability insurance provides protection when a general contractor is sued for a professional mistake, such as missing a deadline on a construction project. This policy is also called errors and omissions insurance (E&O).
Surety bonds guarantee reimbursement for the client if a general contractor is unable to fulfill the terms of a contract. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.
According to an analysis of Insureon applications, the typical general contractor in New York can expect to pay more than the national median for business insurance.
For example, the median annual cost of workers' compensation insurance for general contractors in New York is $4,799, significantly more than the national median of $3,682.
The median annual premium for general liability insurance is $1,380, slightly more than the national median of $1,342.
Insureon’s industry-leading technology helps general contractors in New York save time and money shopping for insurance by comparing policies from top U.S. providers.
Start a free online application to review quotes for the policies that best fit your business. Our insurance agents are licensed in New York and can answer your questions as you consider coverage.
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