How much is a per-project policy?
The price of even a project-based policy is going to vary depending on several factors. The price will depend on your profession, location, income, business size, experience and the required coverage.
Profession - Services Provided
Some professions are considered safer and less of a liability risk than others. Are you a painter or an electrician? There is a lot less that could go wrong painting a house than rewiring it.
When calculating the cost of the certificate of insurance, what services you offer will affect the cost of the certificate. If your profession is considered high risk, then your certificate will be more expensive.
Even within your profession, there is a range of possible insurance costs based on the requirements of a specific project. As a plumber, have you been hired to unclog a drain? Or does your client’s plumbing need to be completely redone?
Naturally, you will pay less for a policy on a lower risk job, such as unclogging a drain. The cost of your policy will depend on the amount of risk involved.
If the project location is in a highly populated area, like the city center or a major street, there is more chance of potential injuries occurring on your premises. Because of the increased risk, you’ll pay more for your insurance. If the job is in an area where there have been incidences of crime, the policy cost will also increase.
Also keep in mind that different states have difference insurance standards and costs. If you are working a job in a different state than you live or typically work, this could affect the cost of your policy.
The cost of insurance also depends on your general income and the fee for an individual project. The higher your income and the larger your business, the more is at risk and the more expensive your policy will be. The same is true of a high-cost project.
More employees means more potential mishaps or accidents. You’ll need to pay more for your policy, depending on how many employees work for you.
The same is true of a large business space. If you have a big business and a large office space, you will need to pay more. The more space you have, the more at risk there is for someone to injure themselves on your property.
More experience, both in the field and as a business owner, will reduce the cost of your policy. The assumption being that someone who has been on the job for long will have a lower risk of claims being made against him regarding his work. Naturally, the same thought process goes with running your own business, regardless of how long you have been doing the job.
While most contractors take out the general liability insurance policy, you may find you need additional coverage. For all the additions to your coverage (e.g. coverage for your car, worker’s comp, excess liability, etc.), you’ll need to pay. Your policy will be calculated together with the additional coverage that you take.
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