Protect Your Maine Construction Business with General Liability Insurance
Part of our guide to general contractors insurance in Maine.
Signing a construction contract in Maine often requires general contractors to carry General Liability insurance. This coverage is non-optional for many commercial clients, real estate developers, and lenders. Without it, a general contractor risks being liable for third-party bodily injury, property damage, or advertising injury claims. In Maine's harsh winter environment, slip-and-fall liability and vehicle damage claims are common. General Liability insurance covers these risks, making it a foundational policy for nearly every small business. A general contractor in Lewiston, for example, would need this coverage to protect against claims from clients or visitors. The cost of not having General Liability insurance can be devastating, with claims potentially exceeding $100,000. General Liability insurance is a must-have for general contractors in Maine, given the state's severe nor'easter and ice storm exposure, as well as coastal flooding risks in cities like Bangor.
General Liability cost for general contractors in Maine
Illustrative monthly general liability estimate for a small general contractor operation in Maine. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What General Liability Covers for General Contractors in Maine
General Liability insurance pays for third-party bodily injury, property damage, and advertising injury claims. For example, if a client slips on a wet floor in a general contractor's Portland office, General Liability insurance would cover the client's medical expenses. It also covers property damage claims, such as if a general contractor accidentally damages a client's property while working on a construction site in South Portland. However, General Liability insurance does not cover workers' compensation claims, which are covered by a separate policy. Additionally, it does not cover professional liability claims, such as if a general contractor is sued for faulty workmanship. General Liability insurance is essential for general contractors in Maine, as it protects against common claims like slip-and-fall accidents and property damage.
Do General Contractors in Maine Need General Liability?
While General Liability insurance is not legally required for general contractors in Maine, it is often contractually required by commercial clients, real estate developers, and lenders. Nearly every commercial client in Maine requires general contractors to carry at least $1 million in General Liability insurance, often with umbrella coverage, as a condition of signing a construction contract. Without General Liability insurance, a general contractor risks being liable for third-party claims, which can be financially devastating. In practice, this means that general contractors in Maine who want to work with commercial clients or on large construction projects need to have General Liability insurance. The cost of not having General Liability insurance can be high, with claims potentially exceeding $100,000. General contractors in Maine should strongly consider purchasing General Liability insurance to protect their business against common claims.
A Real General Liability Claim a General Contractor Could Face
John, a general contractor in Bangor, was working on a construction site when a passer-by slipped on a patch of ice that had formed on the sidewalk. The passer-by suffered a broken ankle and sued John's company for $50,000 in medical expenses. John's General Liability insurance policy covered the claim, paying the $50,000 in medical expenses and avoiding a potentially devastating financial loss for John's business. The incident occurred on a cold winter morning in Bangor, where the harsh weather conditions had created a slippery surface. John's General Liability insurance policy had a limit of $1 million, which was sufficient to cover the claim. The policy also covered the cost of defending against the claim, which totaled $10,000. In the end, John's General Liability insurance policy protected his business from a significant financial loss.
What General Liability Costs for General Contractors in Maine
The estimated premium for General Liability insurance in Maine is $40-$110/month, although rates vary depending on factors like revenue, payroll, coverage limits, deductible, and claims history. For example, a general contractor in Portland with a high revenue and large payroll may pay a higher premium than a smaller contractor in Lewiston. The cost of General Liability insurance in Maine is also affected by the state's harsh winter environment, which increases the risk of slip-and-fall accidents and vehicle damage claims. General contractors in Maine can lower their premium by maintaining a good claims history, increasing their deductible, and bundling their General Liability insurance with other policies. By shopping around and comparing rates, general contractors in Maine can find an affordable General Liability insurance policy that meets their needs.
How to Get General Liability in Maine
To get General Liability insurance in Maine, general contractors should gather information about their business, including revenue, payroll, and coverage needs. They should then compare rates from different insurance providers and consider factors like coverage limits, deductibles, and claims history. General contractors in Maine can also work with an insurance agent to find a policy that meets their needs. For example, a general contractor in South Portland may want to consider a policy with a high coverage limit to protect against potential claims. By comparing rates and considering their options, general contractors in Maine can find an affordable General Liability insurance policy that protects their business. For the cost of a cup of coffee per day, general contractors in Maine can protect their business against devastating claims - see your rate today!
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes. A single claim can increase your premium by 10-20%. However, the cost of not having General Liability insurance can be much higher, with claims potentially exceeding $100,000. Insurance providers consider factors like claims history, coverage limits, and deductible when determining premiums. A general contractor in Maine can mitigate the impact of a claim by maintaining a good claims history and working with an insurance agent to find a policy that meets their needs.
Can I get a COI same-day for a client?＋
Yes. Many insurance providers offer same-day COIs for general contractors in Maine. However, this may depend on the complexity of the policy and the provider's underwriting process. General contractors in Maine should work with an insurance agent to ensure they can get a COI quickly and efficiently. Some insurance providers also offer online platforms for generating COIs, which can speed up the process.
Does a sole proprietor need General Liability?＋
Yes. Sole proprietors in Maine are personally liable for business-related claims, which can put their personal assets at risk. General Liability insurance can protect sole proprietors against third-party claims, even if they don't have employees. However, sole proprietors may be able to purchase a Business Owner's Policy (BOP) that combines General Liability insurance with other coverages, such as property insurance. A sole proprietor in Maine should consider their specific business needs and risks when deciding whether to purchase General Liability insurance.
What's not covered by General Liability?＋
General Liability insurance does not cover workers' compensation claims, professional liability claims, or intentional acts. For example, if a general contractor in Maine is sued for faulty workmanship, their General Liability insurance policy would not cover the claim. However, they may be able to purchase a separate professional liability policy to cover such claims. General contractors in Maine should understand what is and isn't covered by their General Liability insurance policy to ensure they have adequate protection for their business.
Can I cancel my General Liability policy?＋
Yes. However, canceling a General Liability policy can leave a business vulnerable to claims. General contractors in Maine should carefully consider their options before canceling a policy and may want to work with an insurance agent to find a new policy that meets their needs. Some insurance providers may also offer flexible payment plans or temporary coverage suspensions, which can help general contractors in Maine manage their premiums during slow periods.
How do I get a quote for General Liability insurance?＋
To get a quote for General Liability insurance, general contractors in Maine can contact an insurance agent or provider directly. They will need to provide information about their business, including revenue, payroll, and coverage needs. Some insurance providers also offer online quote platforms, which can provide a quick and easy way to get a quote. General contractors in Maine should compare quotes from multiple providers to ensure they find the best rate for their business.
Do I need an umbrella policy with my General Liability insurance?＋
Yes. Many commercial clients, real estate developers, and lenders in Maine require general contractors to carry an umbrella policy with their General Liability insurance. An umbrella policy provides additional coverage beyond the limits of a General Liability policy, which can help protect a business against large claims. General contractors in Maine should work with an insurance agent to determine if an umbrella policy is right for their business and to ensure they have adequate coverage.
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Other coverages general contractors in Maine should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Maine change over time and vary by business. Verify current rules with the Maine Department of Insurance and a licensed agent before purchasing a policy.