Home Improvement Contractor - Licensed Contractors

small business questions!?

I am starting a small design build business. Mostly home additions, storage sheds, detached offices, and other small jobs. I am required to have a 300,000 liabilty insurance to become a licensed contractor. I wanted to know if my insurance would cover both the design side of the work as well as the construction side or if I would need to purchase 2 different policies. Also, how much would I be looking at paying for insurance per year?

Public Comments

1. If you are truly interested in getting the insurance, you should be consulting with not only one insurance company but several. NOW is a good time to work on a business plan and include the proposals into the costs/expenses to make sure your business will see a profit. It will be a tax deduction to consult both an attorney and small business accountant to cover your assets. Make sure you know exactly what licenses you will need and their costs. This is the stage of your business where a business plan is of major importance. Your bottom line depends on it. Don't settle for the cheapest insurance out there and check the reputation of any insurance company you choose to deal with. Find out from other small businesses, especially competitors who they use. The quotes will vary from company to company and from region to region. Congratulations on your business and knowing your target market!!!