10 important things to consider before buying Minnesota Contractors General Liability Insurance for Independent Contractors and Small Businesses.
- Understand what you are buying – General liability insurance pays for bodily injury and property damage. It is normally the first or core policy most independent contractor’s businesses purchase.
- Obtain quotes from several companies – Make several calls or use an independent agent (like us) who works with multiple contractor insurance companies.
- Compare rate’s, coverage’s and deductible’s – Rates for contractor’s insurance can vary greatly. It’s more than how much is contractor’s insurance in Minnesota? The cost is obviously of great concern, but it is more than just price. Watch the coverage’s in each. We recommend Minnesota contractors carry at least limits of $1,000,000 per occurrence and $2,000,000 aggregate. Policies can have a property damage deductible, watch for that and understand what you are buying.
- Have an experienced contractor’s insurance agent – An agent that writes this type of coverage everyday can benefit you. By knowing the ins and outs, plus and minuses and the marketplace. An experienced contractor’s insurance agent can get things done for you faster. They tackle things contractors face meeting the insurance requirements of their general contractors daily. The bottom line is you get paid faster.
- Are there discounts for paying in full? Normally paying in full reduces the amount of service fees, plus many times there is an additional discount for paying in full. Also, ask if there are installment fees if you are on automatic checking withdrawals. What are the installment fees?
- Ask about late fees, cancellation fees and reinstatement fees as well. If there are large fees here, you might as well include that in the cost of the contractor’s insurance.
- What is the financial rating of the company? – Use a contractor’s insurance company that has a financial rating of “A” or better.
- The bells and whistles. Does the policy automatically include additional insured or is there an extra change each time it is needed? What about waiver of subrogation or ongoing and completed operations coverage? What about primary and non-contributory language? Are any of those included? Beware of the hidden charges for these important, sometime add on coverage’s.
- Obtaining fast proof of insurance / certificates of insurance is important. Asked the process and expected arrival time.
- How soon can you get a policy started? Do they offer electronic signing?
I hope the contractor’s insurance information above will help you make a better, informed, quality choice. If you have more questions or would like a price quote on your Minnesota contractor insurance, just reach out to us.
Rick McIntosh – President