Renovation and Remodeling Contractor Insurance
Renovation and remodeling contractors face risks like property damage and injuries, making Remodeling Contractor Insurance essential. Types of coverage include general liability, workers’ compensation, professional liability, and equipment protection.
Choose the right coverage from trusted insurance providers.
Why contractors must protect their work
When I first started managing remodeling and renovation projects, I never realized how unpredictable the job could be until an employee had a lifting injury during a bathroom redo. These jobs involve serious physical labor and carry a lot of risk, not just for your team, but also for the homeowner.
If something goes wrong, like an accident or property damage, the client could sue you. That’s why every contractor needs Remodeling Contractor Insurance. Home renovation insurance helps cover unexpected costs so you don’t lose money or halt the project midway. Whether you’re restoring a kitchen or transforming interior spaces, insurance is the shield that allows you to beautify homes without worry.
What types of insurance do renovation and remodeling contractors need?
Renovation and remodeling contractors face different kinds of risks on every job, from property damage to injuries. To stay protected, they typically need multiple types of insurance that cover all key areas of their work.
Business owner’s policy
This policy conveniently bundles commercial property and general liability insurance into one cost-effective plan for dealers. A BOP is ideal for securing auto shop insurance and shielding businesses from financial losses.
Under this plan
Customer injuries
Damaged customer vehicles
Damaged business property
Commercial auto insurance
A policy designed for dealers and repair shops helps pay for property damage and medical bills after an accident. It is required in many states for businesses that own cars.
Under this plan
Car accident repair costs
Vandalism and theft
Weather damage
General liability insurance
This policy covers basic liabilities for auto service businesses, protecting against dealer risks like customer injury at a repair shop. To maximize savings, businesses can bundle it with property insurance or a business owner’s policy for broader coverage.
Under this plan
Customer injuries at a repair shop
Accidental vehicle damage
Slander and advertising injuries
Workers’ compensation insurance
Workers’ comp is required for auto shops in almost every state to cover employee injuries and related costs. It protects both employees and sole proprietors by handling work injury costs that health insurance might deny.
Under this plan
Employee medical expenses
Partial wage reimbursement
Lawsuits
Tools and Equipment Protection Plan
Contractor’s tools and equipment insurance helps protect your construction gear no matter where you go. This policy keeps your tools and equipment safe while you’re moving them (in transit) or using them at a jobsite. To qualify, your items usually need to be valued under $10,000.
Under this plan
Equipment less than five years old
Mobile equipment
Small toolsa
Professional Liability Protection Plan
Professional liability insurance for contractors, also known as errors and omissions insurance, protects against financial losses when a construction mistake or oversight causes a lawsuit. This policy is key for handling claims related to your work and promises made to clients.
Under this plan
Accusations of negligence
Failure to complete construction
Failure to use promised materials
How much does business insurance cost for home renovators?
The cost of business insurance for home renovators depends on the size of the company, the type of remodeling and renovation services offered, and other key factors. A small renovation business with only a few workers usually pays less compared to a larger contractor with more assets and employees. Insurance premiums are influenced by various elements, including business activities and the level of risk involved.
Key factors that affect insurance premiums:
- Remodeling and renovation services are offered
- Business property and equipment
- Business income
- Types of coverage purchased
- Policy limits and deductibles
How do I get renovation and remodeling business insurance?
Getting renovation and remodeling business insurance is simple if you have basic details like your company revenue and the number of employees. With platforms like Eagle Nation, you can easily secure coverage that fits both commercial and residential remodelers, whether you’re a contractor, subcontractor, or employer.
Steps to get insured:
- Complete a free online application
- Compare insurance quotes and choose policies
- Pay for your policy and download a certificate
Two ways to start your coverage
Quotes online
Talk to an agent
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
Common Questions About Remodeling Contractor Insurance
Contractors usually apply a markup percentage to the project cost based on its size and complexity:
- Comprehensive Home Renovation: $20,000 – $50,000 → 10% – 15% markup
- New Home Construction: $100,000 – $500,000 → 10% – 20% markup
- Small Additions/Repairs: $2,000 – $10,000 → 20% – 25% markup
- Large Additions/Overhauls: $30,000 – $100,000 → 15% – 20% markup
General contractor insurance for remodeling can start as low as $75 per month, but costs vary based on the type of work, location, number of employees, and other factors.
Standard homeowners insurance may cover minor renovations, but larger remodeling projects or upgrades might leave you underinsured. It’s essential to confirm that your contractor has liability insurance and workers’ compensation coverage to protect against accidents or damage during construction.
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"As a renovation contractor, I rely on Remodeling Contractor Insurance to protect myself and my team. The coverage options are comprehensive, from liability to workers’ compensation, and the premiums are affordable for the protection they provide."