Learn about business insurance requirements and the most common policies for general contractors in Washington.
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General contractors may need different types of insurance depending on the work they do. These are the most popular insurance policies for Washington general contractors to protect against financial losses.
A general liability policy covers basic risks, such as a client who is injured at your worksite. Bundle it with commercial property insurance for savings in a business owner's policy.
A BOP bundles general liability coverage and commercial property coverage at a discount. It's often the most cost-effective type of insurance for general contractors.
Washington requires workers’ comp for general contracting businesses with employees. It also protects sole proprietors from work injury costs that health insurance might deny.
This policy covers the cost of injuries and property damage in accidents involving a general contractor’s vehicle. It can also pay for repairs to vehicles damaged by weather or vandalism.
This policy helps pay for repair or replacement of a contractor’s saws, nail guns, hammers, and other tools if they're lost, stolen, or damaged.
This policy is also called errors and omissions insurance (E&O). It covers legal fees when a general contractor is sued over a mistake, such as using the wrong materials.
A bond guarantees reimbursement for the client if a contractor fails to fulfill the terms of a contract or adhere to building codes. Common bonds include bid, performance, and payment bonds.
This policy covers structures in progress and materials, often paying for damage caused by fire, vandalization, and non-severe weather events.
This policy covers costs related to pollution caused by your business, such as a lawsuit alleging harm caused by silica dust from a construction site.
Whether you're in Seattle, Tacoma, or Spokane, general contractors in Washington must register with the Department of Labor & Industries (L&I) and comply with its regulations.
The state's requirements for insurance coverage include the following for contractors:
All general contractors in Washington are required to carry general liability insurance. The policy must have one of the following:
This policy protects your business from costly mishaps. That includes customer injuries, accidental property damage, and other harm caused to third parties (people outside your business).
Most commercial leases require businesses to carry this coverage. Adding commercial umbrella insurance can boost your coverage on general liability insurance and other policies.
Contractor general liability insurance also covers legal costs related to advertising injuries, such as libel, slander, and copyright infringement. For example, if an employee writes false negative comments about a competitor on your social media page, it'll pay for your legal costs if the business sues.
To meet state requirements in Washington, general contractors with employees must provide workers’ compensation insurance. This includes companies that are headquartered in other states but operate in Washington.
Workers' comp pays for medical bills from work-related injuries and provides disability benefits to injured workers. Washington is one of four monopolistic states, which means that businesses must purchase workers' compensation from the state fund.
Policies purchased from the state fund do not include employer's liability insurance coverage. Usually included in workers' comp, this policy pays for legal costs when an employer is sued for negligence that led to a workplace injury. Fortunately, you can still buy this coverage as a stop gap endorsement from a private insurer.
Commercial auto insurance protects vehicles owned by your general contracting company. It covers property damage and medical bills resulting from an accident, along with vehicle theft, weather damage, and vandalism.
The auto liability insurance requirements for Washington businesses are:
You may want to consider additional coverage, depending on the kind of work you do and the vehicles you own.
For automobiles that are used for the business but are leased, rented, or otherwise not owned by the company, you'll need a separate policy called a hired and non-owned (HNOA) policy. Personal auto insurance will typically not cover accidents or incidents that occur during work-related activities.
Washington contractors must obtain a surety bond as part of their licensing requirements:
A surety bond guarantees reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.
General contractors in Washington who buy policies from Insureon pay an average of:
General liability: $115 per month
Commercial auto: $163 per month
Several factors affect general contractor insurance premiums, including:
Hear from customers like you who purchased small business insurance.
There are several steps to becoming a contractor in Washington state. That includes getting a business license, or also a contractor license, depending on the type of work you do.
Insureon helps general contractors and handymen in Washington save time and money shopping for insurance by comparing free quotes from top-rated U.S. insurance companies.
Our insurance agents are licensed in Washington and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
Apply for free insurance quotes for general contractors today. We can work with you to identify and purchase the best types of coverage for your business. Most small business owners receive a certificate of insurance the same day.