Contractors save thousands general liability insurance calculation secrets

Several factors impact the cost of general liability insurance for contractors:

• Business Size and Revenue: Larger businesses with higher revenues often face higher premiums due to increased exposure to risk.
• Type of Work: The nature of your contracting work significantly influences risk levels. High-risk jobs, such as roofing or demolition, typically result in higher premiums.
• Claims History: A history of frequent claims can increase your insurance costs, as insurers view your business as a higher risk.
• Location: Insurance rates can vary based on geographical location due to differing state regulations and risk factors.

Understanding these factors allows contractors to strategically manage their insurance costs by implementing safety protocols, maintaining a clean claims history, and selecting appropriate coverage levels.