Home Improvement Contractor - Licensed Contractors
Insurance for General Contractor in Washington State?
I am looking to become a small general contractor in Washington State. What is the best kind of insurance to buy and what do I REALLY need. Most basic is 1 mil 2 mil but what are the other things Insurance companies forget to offer if you do not ask them direct. We will do most concrete foundations - but a licensing as a general to sub out work for excavating, saw cutting etc.
Public Comments
- It's going to be EXPENSIVE if you sub out more than 25% of the work. It matters a lot if you're doing straight residential, or commercial. You might need a reporting form builders risk, commercial auto, and inland marine policies. You'll likely need workers comp in addition to your general liability. It's going to be based on your payrolls for each class, including subbed out work, and your gross receipts. If your subs do NOT give you a certificate of insurance proving THEY have GL and WC, they will be treated as employees when your policy gets audited. Expect to shell out at LEAST $10,000 to get the initial policies in place, but probably a lot more. Talk to a local, independent agent or two (or three) regarding quotes. I believe Washington is a monopolistic state for WC, so you'll have to buy that from the state.
- If you have experience in the industry make sure you explain that to the agent you approach to do your insurance. New General Contractors are not easy to do, General Liability is the tough product for Generals and you are going to have to really look at what you buy. Some insurance companies have added an endorsement onto their policies that excludes work of subs, some exclude property damage and completed operations. It's a really tricky deal and you'll need to find an agent with some experience in doing these, if you know a fellow contractor with like exposures (significant sub-work) to yours ask them for a referrel to their agent. Otherwise start by searching for a quality independent agent at www.trustedchoice.com. Liability is the tough find, talk to the agent about auto exposure, work comp, property, equipment, umbrella as well...a good agent will have a coverage checklist to go through with each client/prospect.
- I were for a broker who is a rep for an ins co., I would not ask for gen contractor but as a artisan (painter, drywall, etc) unless you plan on starting out as a gen full gen contr., it will be hard to find reasonable rates, I seen for gc $10 grand and up, where as a artisan can start as little as $750. a year. Look into the surplus lines instead of the admitted carriers.
