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How to buy Minnesota contractors insurance 101

Shopping for contractor’s insurance in Minnesota

If you are shopping for contractor’s insurance in Minnesota, we recommend you know what you are buying first.

Contractors insurance is general liability insurance, coverage protecting against bodily injury and property damage. Common limits would be $1,000,000 / $2,000,000. The $1,000,000 is per occurrence or per claim. The $2,000,000 or aggregate limit is just the maximum amount that they would pay out per policy year.

The property damage portion can have a deductible. The amount you would pay first, before the insurance company would start paying. Common deductibles would be $250, $500, $1,000, $2,500…

There, now that we have that out of the way, we can move on to finding a policy that is right for you. There are a couple different options when it comes to getting quotes. You can go with an agent that only writes with one company, go directly to a company online or work with a broker or independent agent like us.

When getting quotes be sure to pay attention to the liability limits and deductible. Also, how the policy is rated and that it accurate. General liability insurance policies are subject to audit at the end of each year. Audits hold you accountable for whatever rating is correct. If your policy was lowballed by an agent trying to make a sale, you could end up with a much larger bill later. Note to self, the cheapest is not always the best.

The agent and agency/company you select should be experienced with contractor’s insurance and write it every day. This way, they know what you need and can deliver it fast and correctly the first time. Most contractor insurance agencies, like ours, have streamlined the certificate or proof of insurance process. We send out most certificates within minutes. This helps you get paid and paid faster in many cases. You need certificate now, not in three days.

If you’re an established company, your loss history or claims history is important. Half the insurance companies out there want two to three years of loss or loss runs. If you can’t provide that, you are not illegible. Hahaha… Don’t worry the other half will give you a quote in most cases. It may or may not be higher in cost.

Now certainly having no claims is a good thing while having many claims may result in higher insurance costs.

Payment plans can be misleading, especially the down payment. Instead look for the least annual cost, paid in full and automatic monthly checking withdrawal options. Sometimes when paying monthly you receive a $5.00-10.00 installment charge each month. If you need a budgeted plan, opt for automatic monthly checking withdraws. This also help cut down on late fees. An example would be four late payment in one year. If the late charge was $25.00 each time, you just wasted $100.00.

Don’t be scared or intimidated by the process of buying Minnesota contractor insurance. We help a variety of different types of contractors like:

Carpenters, Remodelers, Drywall, Electricians, Plumbers, Roofers, HVAC, Siding, Framers, Handyman, Flooring, General Contractors, Home Builders, Janitorial, Painting, Landscaping and many others.

If you have any questions, feel free to call or email me.

Thank you,

Rick McIntosh
952-469-0425
rick@insuringminnesota.com