How much for a $1M per occurrence insurance policy? - Contractor Talk - Professional Construction and Remodeling Forum

Stewart*Chicago · 01-28-2009, 03:39 PM

Hello all,

I have to obtain insurance to get my GGC license in Chicago and they want a $1M per occ. insurance policy from a company with a B+ or better rating by A.M. Best Company.

Does anyone know what type of premium I'll be looking at yearly? Also any suggestions on compaines locally or nationally?

Thanks to all who respond.

Stewart*Chicago

D.A.S.Anthony · 01-28-2009, 05:46 PM

I do not know in your area, but expect to pay 3-5k

We Fix Houses · 01-28-2009, 06:29 PM

Find your local home builders assoc website. There you will find people selling stuff to builders including insurance. Its important to deal someone who knows construction. There are very few around. Deal with a local company and preferably an insurance "broker" (rather than State Farm, etc) who represents many insurance co.'s so if you get canceled, they can re -up you right away.

Be prepared, they may want to sell you Gen Liab you need this, Workers Comp, maybe, maybe not ? And a few others. A lot will depend on how much you sub out and yearly volume. If you sub out 75% of your work, yes 3 - 5k + yr for GL on a say $250k in business and another 5k in other coverages.

Always ask what is the minimum premium and what it covers. Don't try to impress the ins person with your rosy annual projections. Give a limited / low end estimate of your yearly volume. In six months you can review if you do more business and adjust your premium upwards so you don't get hit with 10k in addl premium at the end of the year. There are yearly audits.

Myself and a lot of guys here are small 1- 2 man shops. I sub out less than 10% of my work. My GL is $950 and comm truck ins is $1000.

Be prepared to move your auto and homeowners to the new ins co. with your GL to make your businees worthwhile for them if you're a small guy. You'll need a pretty good credit rating too. Most policies have the 1 mil each occrence, 2 mil within a calender year. Mine does. $500 deductable.

72chevy4x4 · 02-01-2009, 07:00 AM

you guys are nuts! maybe it's the geographic area contributing to rates...my 2mil GL is around $650

wirenut1110 · 02-01-2009, 07:21 AM

I don't understand what you're asking if you already have a general liability policy. It should already be $2 million aggregate and $1 million per occurrence.

I see what I did, I thought 72chevy was the OP...sorry

shanekw1 · 02-01-2009, 11:39 AM

I just re-did my insurance a couple weeks ago.

1 Mil GL = 725
2 Mil GL = 875

$1000 deductible on each.

plazaman · 02-01-2009, 11:43 AM

5k for us

OGStilts · 02-03-2009, 07:33 PM

It depends on your yearly revenues. If you are doing $100,000 of work per year, in Chicago, it will probably run you about $1000. If you are doing $1,000,000 in revenue then it will probably run around $8,000. Having good contracts in place for subcontractors and clients, a written safety plan, and a good warranty program can save you some money.

OGStilts · 02-03-2009, 09:10 PM

I should also add that many other factors go into this number such as what % is new construction and what % is remodeling work, are you doing work on any buildings that are taller than 3 stories, do you sub out 100% of your work and they are going to want to know what % of your work goes to each type of trade, etc etc etc. This is why you probably won't find two contractors alike on here.

MetalBender · 02-03-2009, 09:22 PM

Mines under $1000, as long as roofing does not exceed 10% of my sales. Work Comp is 9.2% of wages in Iowa, before tax.