General Contractor Insurance for New York Construction Businesses
Comprehensive coverage designed for contractors, builders, and construction professionals. Meet contract requirements and protect your business.
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Let us help you explore coverage options that meet your contract requirements.
Why Contractor Insurance Matters
Construction is one of the highest-risk industries for liability claims and workplace injuries. New York requires Workers' Compensation for virtually all contractors with employees, and most commercial clients require proof of General Liability before you can work on their projects. Proper insurance protects your business, meets contract requirements, and helps you win more jobs.
What Is General Contractor Insurance?
General contractor insurance is a combination of coverage types designed specifically for the construction industry. It protects your business from the unique risks that come with construction work—from job site accidents and property damage to equipment theft and claims arising from completed projects.
Unlike general business insurance, contractor coverage addresses construction-specific exposures like operations at multiple job sites, subcontractor relationships, expensive tools and equipment, and the long-tail liability risks that can arise years after a project is completed.
The right insurance program depends on your specific trade, the types of projects you work on, whether you employ subcontractors, and the contract requirements of your clients. Most contractors need multiple coverage types working together.
Contractor Types We Cover
- •General Contractors
- •Home Builders & Remodelers
- •Commercial Construction
- •Roofing Contractors
- •Concrete & Masonry
- •Framing & Carpentry
- •Painting Contractors
- •Handyman Services
Essential Coverage Types for General Contractors
General Liability Insurance
The foundation of contractor insurance, covering third-party bodily injury, property damage, and completed operations claims. Required by virtually all commercial clients.
- ✓ Job site injuries to third parties
- ✓ Property damage during operations
- ✓ Completed operations (post-project claims)
- ✓ Personal and advertising injury
- ✓ Additional Insured endorsements
Workers' Compensation Insurance
Mandatory in New York for virtually all contractors with employees. Construction workers face elevated injury risks, making this coverage essential.
- ✓ Medical expenses for work injuries
- ✓ Lost wage replacement
- ✓ Disability benefits
- ✓ Death benefits to dependents
- ✓ Employer's liability coverage
Inland Marine (Tools & Equipment)
Protects your portable tools, equipment, and materials at job sites, in transit, and in storage. Standard property policies often exclude these items.
- ✓ Power tools and hand tools
- ✓ Portable equipment
- ✓ Materials in transit
- ✓ Scaffolding and forms
- ✓ Leased and rented equipment
Commercial Auto Insurance
Coverage for vehicles used in your construction business, including work trucks, vans, and trailers. Personal auto policies exclude business use.
- ✓ Work trucks and vans
- ✓ Trailers and equipment haulers
- ✓ Hired and non-owned auto
- ✓ Loading and unloading coverage
- ✓ Tools in vehicle coverage
Builders Risk Insurance
Covers buildings under construction from damage during the building process. Often required by property owners, lenders, or contracts.
- ✓ Structure during construction
- ✓ Materials and supplies on site
- ✓ Theft and vandalism
- ✓ Fire and weather damage
- ✓ Soft costs (project delays)
Commercial Umbrella Insurance
Additional liability limits above your primary policies. Construction claims can be catastrophic—umbrella coverage provides crucial extra protection.
- ✓ $1M-$10M+ additional limits
- ✓ Covers GL, Auto, and Employer's Liability
- ✓ Often required by contracts
- ✓ Broader coverage than underlying policies
Additional Coverage Options
Professional Liability
For contractors who provide design services, project management, or professional consulting.
Pollution Liability
Coverage for environmental cleanup and pollution-related claims from your operations.
Surety Bonds
Bid bonds, performance bonds, and payment bonds required for public and commercial projects.
Installation Floater
Covers materials and equipment you're installing until the project is complete.
Employment Practices Liability
Protection against employee claims of discrimination, harassment, or wrongful termination.
Cyber Liability
Coverage for data breaches and cyber attacks on your business systems and customer data.
Understanding Contractor Coverage
Typically Covered
- ✓Third-Party Injuries: Injuries to visitors, passersby, or other workers not your employees
- ✓Property Damage: Damage you cause to existing structures or neighboring property
- ✓Completed Operations: Claims arising after your project is finished
- ✓Employee Injuries: Work-related injuries covered by Workers' Comp
- ✓Tool Theft: With Inland Marine coverage in place
- ✓Vehicle Accidents: Covered under Commercial Auto
Common Exclusions
- ✗Your Own Work: Cost to repair or replace defective work you performed
- ✗Intentional Acts: Deliberate damage or harm is never covered
- ✗Contractual Liability: Some contracts impose liability beyond what's covered
- ✗Professional Services: Design errors require Professional Liability
- ✗Pollution: Standard policies exclude pollution—requires separate coverage
- ✗EIFS/Stucco Work: Often excluded or requires special endorsement
Meeting Contract Requirements
Commercial clients and general contractors typically require subcontractors to meet specific insurance requirements before starting work. Understanding these requirements helps you win contracts and avoid project delays.
Common Contract Requirements:
- General Liability: $1M/$2M or higher
- Workers' Compensation: Statutory limits
- Commercial Auto: $1M combined single limit
- Umbrella: $1M-$5M or higher
- Additional Insured status for client
- Waiver of Subrogation endorsement
Certificate Services
We provide fast certificate service to help you meet project deadlines:
- Same-Day Certificates: Standard COIs issued within hours
- Additional Insured: Add clients to your policy as needed
- Waiver of Subrogation: Endorsements available for contracts
- Primary & Non-Contributory: Endorsement when required
Tip: Send us your contract requirements before you bid. We can help you understand what's needed and ensure your coverage meets the requirements.
Ready to Protect Your Contracting Business?
Let us help you build a coverage program that meets contract requirements and protects your business.
What Affects Contractor Insurance Costs?
Contractor insurance premiums are determined by several factors specific to your business:
Trade Classification
Roofing and structural work pay significantly more than painting or finish carpentry. Your specific trade classification determines base rates.
Annual Revenue & Payroll
General Liability is often rated on revenue; Workers' Comp is rated on payroll. Higher volumes mean higher premiums.
Project Types
Residential remodeling costs less than commercial new construction. High-rise and industrial work carries the highest rates.
Claims History
Past claims, especially Workers' Comp claims, significantly impact your experience modification factor and premiums.
Use of Subcontractors
Using uninsured subs increases your exposure and costs. Properly insured subs can reduce your premium requirements.
Safety Programs
Documented safety programs, OSHA training, and safety certifications may qualify you for premium credits.
Typical Cost Ranges
Contractor insurance costs vary widely by trade. Here are general annual premium ranges:
*Ranges shown are estimates. Actual premiums vary significantly based on trade, experience, and coverage selections.
Risk Management Tips for Contractors
Reducing risks on your job sites can help prevent claims and may lower your insurance costs:
Job Site Safety
- • Conduct regular safety meetings with crews
- • Maintain proper fall protection on elevated work
- • Keep job sites clean and organized
- • Ensure proper trenching and excavation safety
- • Use proper lockout/tagout procedures
- • Document all safety training
Subcontractor Management
- • Require certificates of insurance from all subs
- • Verify coverage limits meet your requirements
- • Require Additional Insured status on sub policies
- • Maintain a subcontractor qualification process
- • Use written subcontract agreements
- • Track certificate expiration dates
Contract Review
- • Review insurance requirements before bidding
- • Understand indemnification clauses
- • Note additional insured requirements
- • Check for waiver of subrogation requirements
- • Identify any coverage exclusions that apply
- • Consult with your agent on questionable terms
Documentation
- • Document all change orders in writing
- • Take photos before, during, and after projects
- • Maintain incident reports for all accidents
- • Keep records of safety training and certifications
- • Save all contracts and correspondence
- • Document project delays and their causes
Frequently Asked Questions
What insurance does a general contractor need in New York?
NY general contractors typically need General Liability, Workers' Compensation (mandatory), Commercial Auto, Inland Marine (tools and equipment), and may need Builders Risk, Professional Liability, and Umbrella coverage. Most commercial clients also require Additional Insured status on your policy.
How much does general contractor insurance cost?
Contractor insurance costs vary based on your trade, payroll, revenue, and claims history. General contractors often pay $3,000-$10,000+ annually for General Liability alone. Workers' Compensation in construction can range from $15-$50+ per $100 of payroll depending on the work classification.
What is completed operations coverage?
Completed Operations coverage protects contractors against liability claims arising after a project is finished. If your work causes property damage or bodily injury after project completion (like a deck collapse years later), this coverage provides protection. It is included in most General Liability policies but may have separate limits.
Do contractors need to provide additional insured status?
Yes, most commercial clients and general contractors require subcontractors to add them as Additional Insured on their liability policy. This provides the client protection under your policy for claims arising from your work. We can add Additional Insureds to your policy and issue certificates same-day.
Does my contractor's insurance cover my tools?
Standard General Liability and Commercial Property policies typically provide limited or no coverage for tools. Inland Marine insurance (also called Contractor's Equipment or Tools Floater) is needed to protect portable tools, equipment, and materials both on job sites and in transit.
What is Builders Risk insurance?
Builders Risk insurance covers buildings under construction from damage during the construction process. It typically covers the structure, materials, and sometimes equipment from fire, theft, vandalism, and weather damage. It's often required by property owners or lenders on construction projects.
Related Insurance Coverage
Important Information
This information is provided for general educational purposes only and does not constitute insurance advice or policy recommendations. Coverage features described are examples and may not be available in all policies or from all carriers. Actual coverage is subject to the terms, conditions, and exclusions of the policy as issued. Please consult with a licensed insurance professional to discuss your specific coverage needs and options. Stan Steele Agency is licensed in New York State.
Protect Your Contracting Business Today
Your contracting business faces unique risks every day. Let us help you build a coverage program that protects your livelihood and meets your contract requirements.
Why Work With Us:
- ✓ Construction industry coverage specialists
- ✓ Same-day certificates and endorsements
- ✓ Multiple carrier options for competitive pricing
- ✓ Help understanding contract requirements
- ✓ Claims assistance when you need it
Serving Rochester, NY and surrounding areas • Licensed in New York State
