Purchasing the right insurance coverage is crucial for construction companies in Idaho. As a contractor, you face diverse risks ranging from property damage and workplace injuries to lawsuits and natural disasters. Finding affordable, tailored insurance can protect your business assets and future.
This comprehensive guide will uncover typical insurance costs for Idaho contractors across common policies like general liability, workers’ compensation, surety bonds, equipment coverage, and more. We’ll explore the key variables impacting your premiums, provide benchmark data for small, medium and large contractors, and suggest strategies to get favorable rates.
Understanding typical contractor insurance expenses in Idaho allows you to evaluate suitable policies for your business. While your exact premiums vary based on your unique attributes, this data offers helpful context to make informed insurance decisions that protect your company.
Idaho contractors need robust protection in their line of work. General liability for contractors is crucial for operating safely. Contractor workers comp is equally important to protect your team. Our guide on small contractors insurance considerations provides valuable insights.
Key Factors Influencing Insurance Costs for Contractors
Many elements influence the insurance premiums paid by contractors in Idaho. Being aware of these key factors allows you to better manage your risk profile through safety programs, business practices, coverage limits, and deductible choices. Here are some of the main considerations that impact insurance costs:
– Type of work – Certain contracting fields like roofing, plumbing, electrical, and demolition are viewed as inherently higher risk by insurers compared to less hazardous trades. More dangerous contractor work leads to increased insurance costs across policies.
– Years in business – The number of years a contractor has been operating influences perceived risk. New and inexperienced contractors often pay higher premiums until they establish a solid track record over time. Insurance companies view longstanding experience as an indicator of lower claims risk.
– Claims history – A contractor’s past history of insurance claims directly impacts pricing. Too many past claims, especially costly ones, will dramatically increase premiums. A major claim or series of smaller claims can even make a contractor uninsurable altogether if the insurance company sees the business as too high risk. Maintaining a clean claims history with few if any past losses helps lower insurance rates.
– Coverage limits – The chosen coverage limits significantly influence policy premiums. Higher liability limits for third party bodily injury and property damage or higher workers’ compensation limits for employee injuries mean increased premiums. Contractors must weigh the benefit of greater protection from larger losses against the cost of higher insurance premiums when selecting appropriate limits.
– Number of employees – The number of employees strongly correlates to the risk exposure for contractors, especially when it comes to workers’ compensation insurance. More employees on the payroll increases the overall risk that one or more workplace injuries occurs. As this risk increases with additional workers, so do the insurance rates.
– Safety record – A contractor’s safety track record directly impacts pricing. Businesses with poor safety records, OSHA violations, lack of safety training, and frequent employee injuries will pay substantially higher premiums across multiple policies like general liability, workers’ comp, and umbrella. Proactively investing in workplace safety helps reduce risk and control insurance costs.
– Business size – Insurance rates for larger contractor firms are often lower compared to small contractors based on economies of scale and the ability to spread risk over a broader book of business. Small contracting businesses frequently pay more for insurance based on lower revenue and heightened risk concentration.
– Insurance provider – Insurance rates can vary significantly between providers based on factors like financial strength, reputation, loss payout history, and competition within the contractor insurance marketplace. A stable insurer with strong financials and fair premiums can help lower costs.
Controlling risk through safety programs, business experience, tailored coverage limits, smart deductible choices, and partnership with reputable insurers helps minimize insurance costs for contractors.
Small, Medium, Large Contractor Benchmarking in Idaho
Below we define small, medium and large contractors in Idaho and show typical insurance policies carried. This benchmarking provides a general framework to help you understand how your insurance costs compare to contractors of similar size.
| Criteria | Small Contractor | Medium Contractor | Large Contractor | XL Contractor |
| Revenue | $150K | $500K | $1M | $2.5M |
| Employees | 1 | 3 | 5 | 10 |
| Autos | 1 | 2 | 3 | 5 |
| Worth of Tools | $5K | $10K | $25K | $50K |
| General Liability | Yes | Yes | Yes | Yes |
| Workers’ Comp | Yes | Yes | Yes | Yes |
| Commercial Auto | Yes | Yes | Yes | Yes |
| Inland Marine | Yes | Yes | Yes | Yes |
| Umbrella | No | No | Yes | Yes |
Keep in mind premiums fluctuate based on your unique attributes like services provided, safety record, number of employees and vehicles, payroll size, annual revenue, and location. Contractors who work closely with their insurance advisor to secure tailored coverage from financially strong carriers and negotiate favorable terms can often achieve insurance rates well below these averages and toward the lower end of the ranges we provide.
If you need guidance assessing your current insurance program, our national network of highly experienced and specialized brokers can provide advice. The brokers in our network have established relationships with top national and regional insurance carriers, allowing them to quickly compare multiple tailored quotes for your specific contracting business. Their expertise and connections can help you realize potential savings by accessing the right carrier partners.
General Liability Insurance Costs
General liability, sometimes called CGL or contractors liability, is a policy that pays for third party property damage or bodily injury caused by your construction operations. It protects against customer allegations of harm caused by your work.
| Low | High | Average | |
| Electrician | |||
| – Small | $700 | $1,800 | $1,200 |
| – Medium | $1,700 | $5,200 | $3,200 |
| – Large | $3,800 | $9,500 | $6,000 |
| Plumber | |||
| – Small | $4,300 | $8,900 | $5,900 |
| – Medium | $13,900 | $51,400 | $24,200 |
| – Large | $21,000 | $39,400 | $29,600 |
| Painter | |||
| – Small | $1,100 | $3,000 | $1,400 |
| – Medium | $2,500 | $5,300 | $3,900 |
| – Large | $3,800 | $11,200 | $7,500 |
| Landscaper | |||
| – Small | $816 | $1,993 | $1,200 |
| – Medium | $2,331 | $4,423 | $3,100 |
| – Large | $4,232 | $9,369 | $6,200 |
| Handyman | |||
| – Small | $1,400 | $3,300 | $2,300 |
| – Medium | $4,300 | $7,700 | $6,300 |
| – Large | $9,200 | $18,000 | $13,100 |
| Carpenter | |||
| – Small | $1,600 | $5,500 | $2,900 |
| – Medium | $5,200 | $11,300 | $8,000 |
| – Large | $9,600 | $24,100 | $16,800 |
| General Contractor | |||
| – Medium | $3,900 | $12,600 | $5,800 |
| – Large | $6,000 | $14,400 | $8,900 |
| – XL | $17,700 | $40,000 | $23,900 |
Typical general liability insurance premiums for contractors in Idaho range from about 1% to 5% or more of annual revenue, depending on specific risk attributes. A common benchmark is 1% of revenue, but hazardous trades like plumbing or roofing fall nearer the higher end. Policy limits are commonly $1 million per occurrence and $2 million aggregate.
Several important factors influence general liability insurance costs for contractors in Idaho:
– Type of work – The trades with greater inherent risk like roofing, electrical, plumbing, and demolition have markedly higher general liability premiums compared to less hazardous contractors based on loss history. The type of work is a major pricing factor.
– Revenue – As a business’s annual revenue increases, so does the potential risk exposure. Higher revenue equals greater likelihood of a costly claim. Insurance companies use revenue as a proxy for business size and third party liability risk level. More revenue means higher premiums.
– Claims history – Past claims activity directly influences pricing. Contractors with a history of frequent or severe liability claims will see significant premium increases, especially following costly claims. Too many claims can even make a business uninsurable. Maintaining a clean claims history helps lower premiums.
– Years in business – New contractors are viewed as higher risk and charged higher premiums until they establish a track record over a number of years. In contrast, contractors who have been in business for many years tend to get better rates based on experience.
– Risk transfer – Taking steps to transfer or reduce risk helps lower premiums. This includes requiring subcontractors to carry adequate general liability insurance, securing performance bonds on projects, and mandating proof of insurance from all subcontractors before allowing them onsite.
– Policy limits – Choosing higher liability coverage limits increases potential protection but also leads to higher insurance premiums. Lower liability limits can expose the contractor to substantial financial risk in the event of a costly claim or lawsuit.
– Deductibles – Electing a higher deductible, which is the amount the contractor pays out of pocket before insurance coverage kicks in, can significantly reduce monthly premiums. This balances cost savings against increased claims exposure.
– Insurance company – The reputation, financial strength, and loss payout record of the insurer as well as the level of competition in the commercial insurance market can positively or negatively impact premium pricing.
Workers Compensation Insurance Costs
Workers’ compensation insurance covers medical expenses and lost wages for employees who suffer job-related illnesses or injuries. It provides vital protection for both employees and employers. For contractors, premiums can vary substantially based on risk profile. Idaho falls in the middle among U.S. states for workers’ comp costs.
| Low | High | Average | |
| Electrician | |||
| – Small | $1,267 | $2,772 | $1,584 |
| – Medium | $3,564 | $7,840 | $4,752 |
| – Large | $5,544 | $12,275 | $7,920 |
| Plumber | |||
| – Small | $1,939 | $4,242 | $2,424 |
| – Medium | $5,454 | $11,998 | $7,272 |
| – Large | $8,483 | $18,785 | $12,119 |
| Painter | |||
| – Small | $2,327 | $5,091 | $2,909 |
| – Medium | $6,546 | $14,401 | $8,728 |
| – Large | $10,182 | $22,547 | $14,546 |
| Landscaper | |||
| – Small | $1,456 | $3,185 | $1,820 |
| – Medium | $4,095 | $9,009 | $5,460 |
| – Large | $6,370 | $14,105 | $9,100 |
| Handyman | |||
| – Small | $3,873 | $8,471 | $4,841 |
| – Medium | $10,892 | $23,962 | $14,522 |
| – Large | $16,943 | $37,516 | $24,204 |
| Carpenter | |||
| – Small | $3,417 | $7,476 | $4,272 |
| – Medium | $9,611 | $21,145 | $12,815 |
| – Large | $14,951 | $33,106 | $21,359 |
| General Contractor | |||
| – Medium | $11,618 | $25,415 | $14,523 |
| – Large | $18,154 | $39,938 | $24,205 |
| – XL | $33,887 | $75,036 | $48,410 |
Typical workers’ compensation insurance premiums for Idaho contractors will range from about 2% to 15% of payroll based on risk class codes and experience rating factors. Policy limits of $1 million are common.
Some of the major factors that influence workers’ compensation insurance premiums for contractors in Idaho include:
– Payroll – Payroll is heavily weighted in workers’ comp premium calculations. Businesses with higher payroll and more employees have greater overall risk exposure and higher premiums. The total payroll and number of employees directly impact costs.
– Class codes – The type of work performed by employees is classified into risk categories called class codes. Higher risk construction trades like roofing or electrical work have significantly higher class code rates than administrative office-type work. Class codes factor into premiums.
– Experience rating – Businesses are graded on their past workers’ compensation claims history when determining premiums. Contractors with fewer and lower cost claims get an ‘experience credit’ applied to reduce premiums. Too many costly claims lead to an ‘experience debit’, increasing premiums.
– Industry trends – Workers’ compensation insurance rates for the construction industry as a whole influence costs. If industry-wide loss trends worsen, rates rise. Improving loss trends lead to lower rates.
– Safety – Contractors with strong workplace safety programs, training, and low injury rates can qualify for premium discounts by becoming ‘safety certified’. High injury rates signal greater risk and increase costs.
– Subcontractor coverage – Using uninsured subcontractors results in significantly higher premiums as the contractor must cover all worker exposures. Requiring subs to carry their own workers’ comp insurance lowers a contractor’s risk and costs.
– State laws – Idaho’s workers’ compensation laws around benefits, exclusions, premium discounts, and rate-setting all directly impact costs. State legal and regulatory mandates influence what contractors pay.
– Deductible – Choosing a higher deductible on workers’ compensation reduces the premiums but increases what the contractor pays out of pocket for each workplace injury claim.
– Insurance company – Premiums and services can vary among insurers based on financial strength, loss payout reputation, provider network, and pricing models. A stable, reputable insurer helps lower costs.
Overview of Additional Insurance Coverages and Typical Premiums
Beyond general liability and workers’ compensation coverage, contractors in Idaho need supplemental insurance policies to address other business risks:
Commercial Auto Insurance
Protects vehicles used for business purposes like company trucks. Common limits are $1 million combined single limit. Typical annual premiums range from approximately $1,500 – $4,000+ per vehicle depending on factors like vehicle type, driver safety records, and coverage limits.
Inland Marine (Contractor Equipment/Tools) Insurance
Covers equipment and tools used for contracting work, both on project sites and in transit. Limits often range from $15,000 up to $250,000 or more. Typical annual premiums for contractors range from roughly $1,500 for basic coverage up to $5,000 or more for larger equipment schedules.
Surety Bonds
Required bid, performance and payment bonds for many public works and large projects. Typical annual surety bond premiums range from approximately 1% to 3% or more of the total bond amount, based primarily on the contractor’s creditworthiness. Stronger credit equals lower rates.
Commercial Property Insurance
Protects business properties like offices, warehouses, showrooms and storage yards. Typical limits cover property reconstruction costs up to several million dollars. Average annual premiums range from about $2,000 for small office spaces up to $20,000 or more for larger premises.
Cyber Liability Insurance
Covers data breaches, hacking incidents, electronic theft and other digital risks. Provides protection against costly customer notification, IT remediation, and legal expenses. Average annual premiums for small to mid-size contractors run $1,000 – $5,000+ depending on revenue and coverage limits.
Umbrella Liability Insurance
Provides additional liability limits above primary insurance policies like general liability and auto. Typical additional limits are $1 million to $5 million. Average annual premiums range from approximately $1,000 – $2,000 per million in extra coverage.
Partner with ContractorNerd.com
As an Idaho contractor, protecting your business with the right insurance is critical. Look no further than ContractorNerd.com, your dedicated partner in contractor insurance. Our experts understand the unique risks contractors face and are committed to providing tailored solutions.
Why Choose ContractorNerd.com?
– Specialized Expertise – Our network specializes exclusively in contractor insurance, ensuring we have deep understanding of your industry’s risks, insurance needs, and challenges.
– Access to Top Markets – Over the years, we’ve cultivated partnerships with leading national and regional insurance carriers. This provides quick access to multiple tailored quotes for your business.
– Cost-Effective Solutions – Our specialists advise on potential coverage gaps in your program along with money-saving adjustments so you optimize protection without overspending.
Don’t leave your business exposed. Partnering with ContractorNerd.com ensures you make a smart investment to properly safeguard your company’s future. Get a free quote today to take the first step towards securing comprehensive, cost-effective contractor insurance in Idaho.