The 10 best Minnesota independent contractor insurance companies for 2021

Selective Insurance

For Minnesota independent contractor insurance, Selective Insurance is easily our top pick.  Sixty percent of what they write in 27 states is contractors’ insurance.  They make it so easy, with quick approval and the cost is exceptionally low.  Their financial rating by AM Best is A (Excellent).  With assets approaching 2.9 billion and being the 38th largest property-casualty insurance company, they are poised for continued greatness. If you’re looking for Minnesota independent contractor insurance, certainly get a price quote from Selective Insurance.

Some of their best pricing is on contractors like painting, drywall, general contractors, paper contractors, custom home builders, interior carpentry, masonry, tile and stone, exterior carpentry, excavation, and much more.  

Main Street America

Main Street America has surprised us.  With an excellent policy offering many of the bell and whistles automatically, it has easily become our 2nd company of choice.  They became part of American Family Insurance in 2020 and are “A” (Excellent) by AM Best for financial strength.  With that merger, American Family Insurance became the 13th largest property and casualty company in America.   This now allows them to distribute products through independent agents.

We see them very competitively writing, masonry contractor, carpentry, painting, interior decorators, drywall, deck builders, janitorial, flooring contractors, electricians, siding installers, subcontractors, remodelers, and more.  

Acuity Insurance

Acuity’s trademark is “wholeheartedly for you”. Since 1925, Acuity Insurance has protected individuals, families, businesses, and contractors.  With innovative insurance products and best-in-class customer service.  Being “A+” rated and having over $5 billion in assets, you can count on their financial strength over the long term.

We see them targeting handyman contractors, painting, door-to-door salesmen, auto transport, HVAC contractors, plumbers, apartment buildings, and more, much more.

United Fire Group

Based in Cedar Rapids Iowa, United Fire Group has become a nationally recognized insurance company. They were founded in 1946 and represented by over 1,200 independent agents across the country.  With just under one billion in assets, they are ranked number 76 out of the top 200 property casualty writers in the United States.  They hold a financial strength rating of “A” by AM Best.

United Fire Group has an interesting appetite for business.  They LOVE contractors of many types.  Contractors like electricians, plumbers, general contractors, interior carpenters, custom home builders, and papers contractors.  But they also seek craft brewers, used car dealers, lessor risks (commercial rental properties), and barber and beauty salons.


It seems Travelers Insurance has been around since the beginning of time, around 165 years.  They are “A+” rated by AM Best and have one of the best reputations in the property and casualty industry.  According to the Insurance Information Institute, Travelers was the largest issuer of business insurance policies when measured by premiums written.

Travelers offer unique liability insurance policies for contractors with special features and benefits when compared to general liability policies for other businesses. That includes coverage for working on a client’s job site, errors and omissions, and other coverage for a specific job or project.

Travelers offer so many flexible insurance options and coverages. Odds are there is a policy or combination of policies that would meet your business’s needs.

We see Travelers competitively writing, kitchen remodelers, house cleaning, carpet cleaning, septic tank cleaners, plumbing, electricians, flooring contractors, painters, paving contractors, refrigeration, and much more.

Integrity Insurance

Integrity Insurance might not be a name you have ever heard of, but they are doing big things when it comes to Minnesota contractor’s insurance.

Integrity Mutual Insurance has been helping policyholders since 1933.  They started by insuring farmers, then together with Grange Insurance Company in 2001, grow selling insurance in 13 states.  Integrity Insurance is “A” rated by AM Best and offers contractors insurance as well as business, auto, home, and life insurance.

We see Integrity Insurance competitively writing Minnesota independent contractor insurance like landscapers, snow plowing, HVAC contractors, concrete contractors, deck builders, electricians, drywall contractors, dryer vent cleaning, janitorial services, lawn care, tile, and stone installers, low voltage contractors, window cleaning, painters and much more.

Secura Insurance

Secura Insurance is making insurance genuine again.  Based out of Neenah, Wisconsin, Secura insurance operates in 12 states.  They were founded in 1900 and provides flexible, customized options for contractors, businesses, auto homes, farms, agribusiness, and nonprofits.

Secura Insurance is ”A” rated by AM Best and is on Ward’s 50 list for safety, consistency, and performance. Secura is also recognized by Great Place to Work, WELCOA, and “World’s Greatest!” for its uncommon workplace culture.

We see them doing an outstanding job for contractors like plumbers, painting contractors, landscapers, deck builders, HVAC, janitorial, lawn care, swimming pool contractors, snow removal, refrigeration, and paving.  They write all types of businesses, recently they have become our go-to for lessors’ risks (commercial building insurance).

Am Trust

AmTrust was founded in 1998 and is really making a name for itself at the time.  It now has over 5,000 employees and serves 60 countries.  They are committed to small business insurance and believe that as you get bigger, you also must get better.

AmTrust is sustainable with an “A-“ rating from AM Best. Establishing a digital strategy early and through a series of acquisitions, is a company to watch. There has never been a better time to do business with AmTrust.

What we have been seeing from this company is amazing.  Providing contractors general liability, commercial auto, and workers compensation.  Contractors like, landscapers, lawn services, snow removal, masonry, plumbing, electricians, concrete contractors, door & window installers, subcontractors, flooring contractors, appliance repair & service, painters, paving contractors, grading of land, gutter installation & repair, and much more.  AmTrust is a monoline workers compensation insurance rock start. Contractors, restaurants, craft breweries, offices (clerical), school bus companies, cities, janitorial, accountants, auto repair, and auto body shops, just to mention a few, are all on AmTrust’s radar.

North Star Mutual Insurance Company

North Star Mutual is now based in Cottonwood, MN, and was founded in the 1920s.  Known as being stable, consistent, and financially sound, North Star Mutual is expanding its footprint.  They now write insurance policies in Minnesota, South Dakota, North Dakota, Iowa, Kansas, Oklahoma, Nebraska, and Wisconsin. 

North Star Mutual Insurance Company is “A+” rated by AM Best and year have been on Ward’s 50 Top Performing Property-Casualty Insurance Companies.

Small contractors & independent contractors trust North Star’s contractor insurance program.  Here is a list of the types of contractors they like: residential carpenters, interior carpenters, carpet and rug installers, cable TV installation, door & window installers, driveway, parking, sidewalk paving or repaving, fence erection, interior decorators, grading of land, office furniture installation, janitorial, lawn care, landscaping, masonry, painting, paperhanging, plastering & stucco work, plumbing, refrigeration, septic tank systems (installation, service or repair), sign painting, tile and stone, window cleaning and more.   

State Fund Mutual Insurance company (SFM)

State Fund Mutual Insurance Company is the largest writer of workers’ compensation in the state of Minnesota.  Over 25,000 employers choose SFM for their workers’ compensation insurance need and 96% of customers stay with them year after year.

SFM is rated “A-” (Excellent) by AM Best.  Businesses and contractors choose to buy their workers’ compensation from SFM because they are the work comp experts.

Contractors with payroll or without (Minnesota Ghost or Waiver Workers Compensation Insurance Policy) purchase their contractor’s workers’ compensation insurance through SFM.  Contractors in Minnesota always say I do not need work comp, I do not have employees.  Well, it depends on who is asking.  If it is the state of Minnesota, the answer is “No” if you do not have employees.  However, most general contractors will want a certificate of workers’ compensation insurance.  The reason is Minnesota’s state statutes that talk about general contractors being responsible for the worker’s companies’ insurance benefits of their subcontractors and their employees.  When a contractor needs a work comp certificate but does not have employees they purchase a Minnesota Ghost or Waiver Workers Compensation Insurance Policy.  This is a zero-payroll policy and can cost from $234 to $670 per year roughly.  Like all workers comp policies, you are subject to audit at the end of the year.  If you prove you do not have employees, no payroll, then you may be subject to a refund. 


What Is Minnesota Independent Contractor Insurance?

Minnesota Independent contractor insurance is most commonly general liability insurance.  General liability covers bodily injury and property damage.  But independent contractors may need more than just this.  They might need tool and equipment coverage, commercial auto/trailer, workers compensation insurance, or even a bond.

Do Minnesota Independent Contractors Need to Carry Insurance?

No, Minnesota does not have a law that states you need to.  However, if you are licensed through the Minnesota Department of Labor & Industry you do.  Contractors like plumbers, electricians, remodelers are normally licensed.

Carrying MInnespta independent contractor insurance is certainly a good idea, don’t put your assets at risk.  Plus, most of the clients and general contractors will require it.  Most will want you to have a $1 million general liability insurance policy.  If you’re working for larger general contractors or companies, they might want more.  They commonly ask for special endorsements (add on) and additional policies.  You should know these things and have them factored in before you sign a contract.  

What Does General Liability Insurance Cover?

General liability insurance covers bodily injury and property damage claims you may be liable for.  Insurance policies do not cover everything.  One of the most common exclusions is “Your Work”.  Insurance policies normally exclude your work, meaning other than what you are working on could be covered.  A good example is you build a deck and two years later there is water damage to the ceiling and walls in the home’s lower level.  It was discovered that the flashing was improperly installed.  The general liability policy would respond to the damages, but not the improperly installed flashing.

General liability insurance policies offer different limits of coverage you can select. Limits like $300,000/$600,000, $500,000/$1,000,000, or $1,000,000/$2,000,000.  The $1,000,000/$2,000,000 limits are the most common sold.  The first figure is the per occurrence limit or per claim limit.  The second figure is the aggregate limit or per policy year limit.

These policies can also come with a property damage deductible.  Common deductibles are $250, $500, 1,000.  It can be higher on larger contractors to help keep the cost down.  Having no property damage deductible is the most desirable. 

How Much Does Minnesota Independent Contractor Insurance Cost?

The cost for general liability insurance coverage for businesses normally starts around $481 to $831 per year.  If you are a general contractor subcontracting out most of your work or a roofer, you might be looking at $1,900+ depending on sub costs, material, and gross sales.

Pricing can vary by state, gross sales, sub costs, employees, type of contractor, claims history, and other factors.  Requesting a price quote is the only way to know exactly what your costs will be.

How Did We Choose Minnesota’s the Best Independent Contractor Insurance Companies?

We work with 50 different companies, and some are great at independent contractors’ insurance and others are not.  The largest factors we considered were insurance company size, financial stability ratings, ease of doing business, satisfaction ratings, claims service, and cost.

All insurance companies are not created equal. When you buy cheap independent contractor insurance, that is exactly what you might receive, cheap.  A good value is a competitive price, great service, and fair claim settlements.

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