General Liability Insurance for Minnesota General Contractors: Protection from Third-Party Claims
Part of our guide to general contractors insurance in Minnesota.
You need General Liability Insurance to protect your business from third-party bodily injury, property damage, and advertising injury claims. This foundational policy is essential for nearly every small business, including general contractors in Minnesota. General Liability Insurance covers claims that can arise from your business operations, such as a client slipping on a wet floor at your St. Paul office or a passer-by being injured by a falling object at your Rochester construction site. Without General Liability Insurance, you could be held personally responsible for damages, which could lead to financial ruin. In Minnesota, where extreme cold and blizzards can cause vehicle damage and slip-and-fall accidents, having General Liability Insurance is crucial.
General Liability cost for general contractors in Minnesota
Illustrative monthly general liability estimate for a small general contractor operation in Minnesota. 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 Minnesota
General Liability Insurance pays for damages to third parties, including bodily injury, property damage, and advertising injury claims. For example, if a client visits your Minneapolis office and slips on a wet floor, General Liability Insurance would cover their medical expenses. Similarly, if a passer-by is injured by a falling object at your Bloomington construction site, General Liability Insurance would cover their damages. However, General Liability Insurance does not cover workers' compensation claims, which are covered by a separate policy. It also does not cover professional liability claims, such as errors and omissions, which are covered by an E&O policy. By having General Liability Insurance, you can protect your business from costly claims and focus on your operations.
Do General Contractors in Minnesota Need General Liability?
Nearly every commercial client, real estate developer, and lender in Minnesota requires general contractors to carry at least $1 million in General Liability and workers' compensation insurance as a condition of signing a construction contract. This is because General Liability Insurance protects them from potential claims that may arise from your business operations. Without General Liability Insurance, you may not be able to sign contracts with these clients, which could limit your business opportunities. Additionally, General Liability Insurance is essential for protecting your business from costly claims that could lead to financial ruin. In Minnesota, where workers' compensation premiums are among the highest in the Midwest, having General Liability Insurance can help you manage your risk and protect your business.
A Real General Liability Claim a General Contractor Could Face
On a humid morning in Minneapolis, a general contractor was working on a construction site when a passer-by was injured by a falling object. The passer-by suffered a broken arm and required surgery, resulting in medical expenses of $50,000. The general contractor was found liable for the accident and had to pay the passer-by's medical expenses. Fortunately, the general contractor had General Liability Insurance, which covered the medical expenses and protected their business from financial ruin. The general contractor's General Liability Insurance policy paid $50,000 to settle the claim, and the business owner avoided a significant financial loss.
What General Liability Costs for General Contractors in Minnesota
The cost of General Liability Insurance for general contractors in Minnesota can range from $40 to $110 per month, depending on factors like revenue, payroll, coverage limits, deductible, and claims history. For example, a general contractor with a high revenue and a history of claims may pay more for General Liability Insurance than a general contractor with a low revenue and a clean claims history. Additionally, the cost of General Liability Insurance can be affected by the location of your business, with general contractors in areas prone to natural disasters or extreme weather conditions, such as the Red River Valley, may pay more for insurance. By improving safety measures and reducing claims history, you can lower your General Liability Insurance premium and protect your business from costly claims.
How to Get General Liability in Minnesota
To get General Liability Insurance in Minnesota, you should gather information about your business, including revenue, payroll, and coverage limits. You should also compare quotes from different insurance providers to find the best rate for your business. Additionally, you should consider working with an insurance broker who has experience working with general contractors in Minnesota. They can help you navigate the insurance market and find a policy that meets your business needs. In Rochester, for example, you can find insurance brokers who specialize in working with general contractors and can provide you with personalized service and expertise. By working with an insurance broker and comparing quotes, you can find a General Liability Insurance policy that protects your business from costly claims and helps you manage your risk. General Liability Insurance costs pennies on the dollar compared to the risk of going without it - see your rate now.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes. Your premium may increase after a claim, depending on the severity of the claim and your claims history. However, the increase will depend on various factors, including the type of claim, the amount of damages, and your overall claims history. You can work with your insurance broker to understand how a claim may affect your premium and to find ways to mitigate the increase.
Can I get a COI same-day for a client?＋
Yes. Many insurance providers offer same-day COI issuance for general contractors in Minnesota. You can work with your insurance broker to obtain a COI quickly and easily, often online or over the phone. This can help you meet client requirements and start work on a project promptly.
Does a sole proprietor need General Liability?＋
Yes. As a sole proprietor, you are personally responsible for your business operations, and General Liability Insurance can protect you from costly claims. Even if you don't have employees, you can still be held liable for accidents or injuries that occur on your job site or as a result of your business operations. General Liability Insurance can provide you with financial protection and help you manage your risk.
What's not covered by General Liability?＋
General Liability Insurance does not cover workers' compensation claims, professional liability claims, or damage to your own property. For example, if an employee is injured on the job, workers' compensation insurance would cover their medical expenses, not General Liability Insurance. Similarly, if you make a mistake on a project, professional liability insurance would cover the damages, not General Liability Insurance. You should consider purchasing additional insurance policies to cover these risks and protect your business.
Can I cancel my General Liability policy at any time?＋
Yes. You can cancel your General Liability policy at any time, but you may be subject to penalties or fees, depending on the terms of your policy. You should review your policy carefully before canceling and consider the potential consequences, including the loss of coverage and the potential impact on your business. It's often better to work with your insurance broker to find a new policy that meets your business needs rather than canceling your existing policy.
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Other coverages general contractors in Minnesota should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Minnesota change over time and vary by business. Verify current rules with the Minnesota Department of Insurance and a licensed agent before purchasing a policy.