Renovation and Remodeling Contractor Insurance

The cost of your remodeling and renovation contractor insurance premium is based on several factors that insurers look at during underwriting, such as:

• Remodeling and renovation services offered: Contractors who perform structural renovations, demolition, or electrical work often face higher premiums than those focused on lower-risk interior upgrades, such as painting or flooring, because these services carry a greater risk of injuries and property damage.
• Business property and equipment: If your business owns expensive tools, equipment, vehicles, or a workshop, you'll likely pay more for insurance. Higher-value property costs more to repair or replace after a covered loss.
• Annual revenue: Insurers often use your annual revenue to estimate your overall risk exposure. Businesses that generate more revenue typically complete more projects, interact with more clients, and have a greater chance of experiencing a claim.
• Business location: Where your company operates can impact insurance rates. Contractors working in areas with higher labor costs, increased litigation risks, severe weather exposures, or higher rates of theft and property crime may pay more for coverage than businesses in lower-risk regions.
• Commercial vs. residential work: Commercial remodeling projects often involve larger jobsites, higher contract values, stricter insurance requirements, and greater liability exposures than residential remodeling projects. As a result, contractors who primarily work on commercial properties may see higher insurance costs.
• Number of employees: Businesses with more employees generally pay higher insurance premiums, especially for workers' compensation insurance. A larger workforce increases payroll and the likelihood of workplace injuries or other claims.
• Safety and risk management practices: Strong safety programs, employee training, and documented risk management procedures can help reduce claims and lower insurance costs over time. Insurers often reward contractors that demonstrate a commitment to workplace safety.
• Policy limits and deductibles: Higher coverage limits provide greater financial protection but generally increase premiums. Choosing a higher deductible can help lower your insurance costs, though it also means paying more out of pocket when a claim occurs.
• Claims history: Insurance companies review your prior claims when calculating rates. Contractors that have filed several or costly claims are often viewed as higher risk and may pay more for coverage. In contrast, businesses with a clean claims history may qualify for lower premiums.

In addition to a general liability insurance policy and workers' compensation coverage, remodeling contractors may benefit from several other policies depending on their operations, including:

• Commercial property insurance: Covers owned buildings, offices, warehouses, and other business property from covered losses such as fire, theft, or vandalism.
• Business personal property (BPP) insurance: Helps protect furniture, computers, supplies, and other business assets kept at your office or workshop. BPP coverage can be a good option for contractors who don't own or lease a dedicated office or workshop and may be available as an endorsement to a general liability policy.
• Business interruption insurance: Also called business income insurance, this coverage can help replace lost income and pay ongoing expenses if a covered event temporarily shuts down your business.
• Owners and contractors protective (OCP) insurance: Provides liability protection for a project owner against claims arising from a contractor's work.
• Products-completed operations coverage: Protects against claims involving property damage or bodily injury that occurs after renovation work has been completed.
• Builder's risk insurance: Covers buildings and materials during construction or renovation projects against covered losses such as fire, theft, and certain weather-related events.
• Hired and non-owned auto (HNOA) insurance: Provides liability protection when you or your employees use rented, leased, or personally-owned vehicles for business purposes.

Your insurance needs will depend on the size of your business, services you provide, and contractual requirements of your clients and projects.

Renovation contractors, roofers, plumbers, and other types of construction businesses can save money on insurance by comparing quotes from different providers. With Insureon, you can get free quotes from top-rated insurance companies by filling out our easy online application.

Other ways to save money include:

• Bundling policies. Remodeling contractors can often buy general liability coverage and commercial property insurance together in a BOP, which costs less than buying these policies separately.
• Customizing your coverage. Choose lower limits or higher deductibles to reduce your premium, but make sure your policy can still cover a potential claim.
• Avoiding accidents and claims. Home improvement businesses can prevent employee injuries and customer accidents that lead to claims by implementing a strong risk management strategy that includes employee training and strict enforcement of safety protocols.

Our agents can help you find the right construction insurance solutions for your budget and business needs, whether you take on minor home improvement tasks or large-scale commercial bids.