Question 1

How does business insurance protect general contractors?

Accepted Answer

Our contractor insurance packages are designed to protect your business from a variety of risks and help you save money to grow your business. You can be protected from financial losses related to:

Damage to someone’s property

Your ladder slips and crashes through a living room window. The general liability coverage in your insurance package could help pay for a replacement.**

Accidents that hurt someone

A distracted homeowner trips over your extension cord, breaks their ankle and sues you. Your general liability coverage could also come into play here by helping to pay for medical costs and legal fees.

Workplace injuries

Your employee has to get medical care and cancel some jobs after they slip and cut their finger with a drill. Workers’ compensation coverage with business owner’s coverage can help cover medical bills and lost wages. Workers’ comp is usually required by law if you have employees.

Injuries and damage involving your business vehicles

You get into a fender bender with your work truck that was ruled your fault. Commercial auto coverage can help pay for the repairs and some of the rental costs, depending on the policy limits. This coverage is also usually required by law for business-owned vehicles.

Theft or damage to your tools

Motor failure puts your compressor out of commission. The tools and equipment insurance that is optional with your general liability coverage can help pay for replacement and repair costs.

Damage to your own property

A water pipe bursts in your office and floods the entire space. Property insurance can help with replacement or repair costs if your owned or leased property is damaged due to a covered event, such as fire, tornado or vandalism.

Question 2

I’m a general contractor, does this insurance allow me to hire subcontractors?

Accepted Answer

Yes. We do require that your subcontractors have the legally required licenses, their own insurance with limits that are equal to or greater than your own, and that they have you named as an additional insured on their policy.

You’ll also need to keep this documentation on file for an adjuster to review in case of a claim.

Question 3

I need to add a General Contractor or employer as an additional insured, can I do that with this policy?

Accepted Answer

Absolutely! We know this is a common need for contractors, so we’ve given you the power to create certificates of insurance and add additional insureds right from your customer account, 24/7, with Live Certificates. You can read more about our Live Certificates and how they work here. If your contractor needs special language on the certificate or other forms (called endorsements), please send a sample certificate to support@nextinsurance.com and an agent will be happy to review those requirements with you.

Question 4

What is Contractors’ Errors and Omissions coverage?

Accepted Answer

Contractor’s Errors & Omissions coverage is intended to protect against faulty work or accidental damage to your product. This coverage is important if you work on a property that belongs to a third party but is in your care during the job, or if you construct products for your clients and want coverage in case mistakes are later discovered.

Question 5

I subcontract out all of my work. Am I still eligible for a quote and policy?

Accepted Answer

Of course. In this case, we recommend filling out an application for our general contractor policy.

Please review the subcontractor requirements carefully, so that in case of a claim, you’ll have all of the necessary paperwork.

Question 6

Will my General Liability policy cover my tools and equipment?

Accepted Answer

In order to purchase a tools and equipment policy, your business must have an active general liability policy with NEXT Insurance. This helps ensure your business is properly covered in the event of a claim. If you are a contractor or own a cleaning business, you can add tools & equipment coverage to protect your gear if it is damaged or stolen. The easiest way to get an accurate quote for this type of coverage is to complete the 10-minute application process at www.nextinsurance.com.

Question 7

Who is covered under this policy?

Accepted Answer

Good question! This actually depends on your business structure. We offer policies for individuals, LLCs, and more! If you’re not sure which one you are, we recommend checking with the department where you registered your business or filed for your licence. If you’re a registered LLC or corporation, our policies can offer coverage for your reported W2 employees, and in certain situations can extend as excess or umbrella coverage over a subcontractor’s (a 1099 employee) own policy. More information about our subcontractor requirements can be found in the “About Your Business” portion of the application, or by contacting our support team.

Question 8

If I subcontract all of my work, why do I need General Liability coverage?

Accepted Answer

There are a few reasons you could still need General Liability coverage as a general contractor:

You may still be at risk of causing damage during a site visit, especially if you run projects that are remodels or additions, where a third party's property is potentially vulnerable.
You could be at risk for Personal and Advertising Injury, which includes accidental copyright infringement, defamation of character, advertising infringement, or caused some other form of non-tangible harm.
You could be held responsible if you instruct your subcontractors to operate a certain way, and injury arises because of your method, especially if your instructions corrected or changed the actions or processes of your subs.
You could be held responsible for certain actions of your subcontractors, as you were responsible for hiring them.

Question 9

I’m a jack-of-all-trades - what policy do I need?

Accepted Answer

We have a couple of policies that could be right for a jack or jill of all trades. Our handyperson policy might be the best fit if you offer minor repair or maintenance services. This policy is limited to small jobs and is not a fit for jobs that might require a license, permit or inspection at any point. If your operations are a little bit larger in scale, or if you have a specialty, we recommend taking a look at our general contractor application, where you will have the opportunity to add coverage from a list of coverable activities. Note: All of our policies require that you have the legally required licenses for the work you’re doing in your state, so be sure to check in to make sure you are compliant.

Question 10

Will my policy include coverage for work that I don’t have a license for?

Accepted Answer

If your state requires a license, we do too. However, in most states where insurance is a requirement to get your license, we do offer the ability to purchase the policy on the condition that you agree to have all the required licenses before working.

But it’s important to remember: If you are not operating legally, a claim will likely not be covered.

If your state doesn’t require you to have a license for a certain line of work, you are welcome to apply for a policy.

Question 11

How do I cancel my policy?

Accepted Answer

We're sorry to see you go. To cancel your policy, please follow these instructions:

Log in to your account using your email or phone number
On the homepage of your customer account, click the blue arrow to the right of the policy you’d like to cancel
Click "Cancel coverage"

Once you follow the prompts and submit your request, we'll process the cancellation effective immediately. You’ll receive a confirmation email and a pro-rated refund within a few business days.

Question 12

Does NEXT support general contractor insurance in my city?

Accepted Answer

NEXT offers business insurance for general contractors in most U.S. cities, including the following ones:

GENERAL CONTRACTOR INSURANCE

You can save up to 25% in discounts on business insurance.*

General contractor liability insurance designed to protect your business

General Liability

Contractors’ E&O

Commercial Auto

Workers' Compensation

Tools & Equipment

Commercial Property

What customers say about us

You can save up to 25% in discounts on General Contractor insurance

You can pay for your insurance package on a monthly or annual basis and you can cancel instantly at any time.

How much does general contractor insurance cost?