Protect Your Business with General Liability Insurance in North Dakota
Part of our guide to general contractors insurance in North Dakota.
You need General Liability Insurance to protect your business from third-party bodily injury, property damage, and advertising injury claims. General Liability is the foundational policy nearly every small business needs, including general contractors in North Dakota. The state's extreme weather conditions and recurring commercial property damage risk make it essential to have this coverage. Without it, you risk facing significant financial losses and damage to your reputation. General Liability Insurance covers claims that your business is liable for, including third-party bodily injury and property damage. It does not cover workers' compensation or professional liability claims, which require separate policies. As a general contractor in North Dakota, you face unique risks, such as extreme cold and blizzards causing vehicle damage, frozen pipes, and business closures, as well as Red River Valley flooding creating recurring commercial property damage risk.
General Liability cost for general contractors in North Dakota
Illustrative monthly general liability estimate for a small general contractor operation in North Dakota. 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 North Dakota
General Liability Insurance pays for third-party bodily injury, property damage, and advertising injury claims. For example, if a client visits your job site in Fargo and slips on a patch of ice, causing a broken ankle, General Liability Insurance would cover the medical expenses and any resulting lawsuit. It also covers property damage claims, such as if your equipment damages a client's property during a construction project in Bismarck. However, it does not cover workers' compensation claims, which are covered by a separate policy, or professional liability claims, which require an Errors and Omissions (E&O) policy. General Liability Insurance also does not cover damage to your own business property or equipment, which is typically covered by a commercial property insurance policy.
Do General Contractors in North Dakota Need General Liability?
While General Liability Insurance is not legally required for general contractors in North Dakota, it is often contractually required by clients and lenders. Nearly every commercial client, real estate developer, and lender requires general contractors to carry at least $1 million in General Liability and workers' compensation insurance as a condition of signing any construction contract. Without General Liability Insurance, you risk facing significant financial losses and damage to your reputation if a third-party claim is made against your business. In practice, this means that you will struggle to secure contracts and clients without this coverage, making it a necessary investment for your business.
A Real General Liability Claim a General Contractor Could Face
During a construction project in Grand Forks, a passer-by was injured by a falling object from the job site. The passer-by suffered a concussion and broken arm, resulting in medical expenses of $50,000. The general contractor's General Liability Insurance policy covered the medical expenses and the resulting lawsuit, which totaled $200,000. The policy also covered the cost of defending the lawsuit, which was $30,000. Without General Liability Insurance, the general contractor would have been personally responsible for these costs, which could have led to financial ruin. The claim was handled efficiently, and the general contractor was able to continue operating their business without significant disruption.
What General Liability Costs for General Contractors in North Dakota
The cost of General Liability Insurance for general contractors in North Dakota varies depending on factors such as revenue, payroll, coverage limits, and deductible. The estimated premium range is $40-$110/month. The cost can be influenced by the state's extreme weather conditions, such as blizzards and flooding, which can increase the risk of property damage and bodily injury claims. For example, a general contractor with a higher revenue and larger payroll may pay a higher premium than a smaller contractor. However, the cost of General Liability Insurance is relatively low compared to the potential costs of a third-party claim, making it a necessary investment for your business. You can lower your premium by choosing a higher deductible, improving your business's safety record, and bundling your policies with the same insurer.
How to Get General Liability in North Dakota
To get General Liability Insurance in North Dakota, you should gather information about your business, including revenue, payroll, and coverage limits. You should also compare quotes from different insurers to find the best rate for your business. When comparing quotes, make sure to consider the coverage limits, deductible, and premium, as well as the insurer's reputation and financial stability. Don't risk your business's financial future by going without General Liability Insurance - see your rate today and protect your business from third-party claims.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes. Your premium may increase after a claim. However, the increase will depend on the severity of the claim and your business's overall claims history. If you have a history of frequent or severe claims, your premium may increase more significantly. On the other hand, if you have a good claims history, your premium may not increase as much.
Can I get a COI same-day for a client?＋
Yes. You can typically get a Certificate of Insurance (COI) same-day for a client. Most insurers offer online platforms or work with insurance agents who can provide a COI quickly. Some insurers may also offer expedited COI services for an additional fee, which can be helpful in urgent situations.
Does a sole proprietor need General Liability?＋
Yes. As a sole proprietor, you are personally responsible for your business's actions, which means that you can be held liable for third-party claims. General Liability Insurance can protect your personal assets, such as your home and savings, in the event of a claim. Even if you don't have employees, you can still be held liable for bodily injury or property damage caused by your business operations.
What's not covered by General Liability?＋
General Liability Insurance does not cover workers' compensation claims, professional liability claims, or damage to your own business property or equipment. Workers' compensation claims are covered by a separate policy, while professional liability claims require an Errors and Omissions (E&O) policy. Damage to your own business property or equipment is typically covered by a commercial property insurance policy.
Can I cancel my General Liability policy at any time?＋
Yes. You can typically cancel your General Liability policy at any time, but you may be subject to a penalty or fee. You should also consider the potential risks of canceling your policy, such as leaving your business exposed to third-party claims. If you need to cancel your policy, it's best to work with an experienced insurance agent who can help you navigate the process and ensure that you have the necessary coverage in place.
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Other coverages general contractors in North Dakota should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in North Dakota change over time and vary by business. Verify current rules with the North Dakota Department of Insurance and a licensed agent before purchasing a policy.