For construction companies in Kansas, having the right insurance is crucial for protecting your business. As a contractor, you face diverse risks ranging from property damage and employee injuries to lawsuits and cyber attacks. Purchasing adequate, cost-effective insurance tailored to your operations can safeguard your assets and future.
This guide will uncover insurance costs for Kansas contractors across popular policies like general liability, workers’ compensation, bonds, equipment coverage, and more. We’ll explore the key variables impacting your premiums, provide benchmarking data for small, medium and large contractors, and suggest strategies to secure favorable rates.
Understanding typical contractor insurance expenses in Kansas allows you to evaluate policies suitable for your business. While your exact premiums depend on your unique attributes, this data offers helpful context to inform smart insurance decisions.
Kansas contractors face various risks that demand proper insurance coverage. General liability insurance for contractors protects against common liabilities. A guide to workers compensation contractors need ensures your team is covered in case of workplace injuries. Our comprehensive contractor insurance resource offers valuable information for businesses of all sizes.
Key Factors Influencing Insurance Costs for Contractors
Here are some key factors that can influence insurance costs for contractors:
– Type of work – The type of contracting work being done (construction, plumbing, electrical, etc.) impacts risk and therefore insurance rates. Higher risk work typically has higher insurance premiums. Roofing, electrical, and plumbing contractors tend to have some of the highest premiums due to the nature of their work.
– Years in business – Contractors who are new to the business often pay higher premiums until they establish a track record over several years. Insurance companies view experience as an indicator of lower risk. New business policies often cost 20-30% more than established contractors.
– Claims history – Prior claims made by a contractor will often result in increased premiums, especially if the claims were large or frequent. Too many claims can make a contractor uninsurable. A clean claims history will help lower rates.
– Coverage limits – Higher levels of coverage for things like general liability or workers’ compensation mean higher premiums. Contractors must weigh the cost vs the amount of protection needed. Lower limits can save money but may expose you to uncovered losses.
– Number of employees – More employees on payroll increases the risk exposure for things like workers’ comp. Rates will be higher as a result. The precise impact depends on the classification of work being done.
– Safety record – Contractors with poor safety records, OSHA violations or frequent employee injuries can expect to pay higher premiums. Proactive safety reduces risk substantially.
– Business size – Larger contracting firms often get better rates based on economies of scale and broader risk distribution. Small contractors with under $500K in revenue pay more.
– Insurance provider – Rates can vary significantly between insurance companies. Competitive bidding between providers is wise.
The key is to maintain excellent records, safety practices, qualifications, experience, and choose appropriate coverages to help minimize insurance costs. Controlling risk lowers premiums.
Small, Medium, Large Contractor Benchmarking in Kansas
The table below displays our definition for small, medium and large contractors in Kansas alongside typical insurance coverages. This helps provide you with a general benchmark to understand how your costs compare.
| 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 location, services, safety record, number of employees and vehicles, payroll, and revenue. Contractors who secure tailored coverage with quality carriers and favorable terms may achieve rates well below the averages and toward the lower end of the ranges we provide in the benchmarking that follows.
If in doubt, we encourage you to explore your program with our network of highly skilled and specialized brokers. The brokers in our network specialize in helping contractors realize savings by accessing the right carriers and tailoring coverage to meet the specific needs of a contractor business.
General Liability Insurance Costs in Kansas
General liability, also known as contractor’s liability, protects your business if a third party alleges property damage or bodily injury caused by your construction operations. It covers legal defense costs and compensatory damage payments. Typical premiums range from 1% to 5%+ of revenue for $1 million per occurrence limits.
| Low | High | Average | |
| Electrician | |||
| – Small | $900 | $2,300 | $1,400 |
| – Medium | $3,000 | $5,700 | $3,900 |
| – Large | $6,400 | $10,700 | $7,500 |
| Plumber | |||
| – Small | $3,600 | $17,700 | $8,800 |
| – Medium | $4,100 | $23,200 | $13,400 |
| – Large | $18,800 | $53,900 | $31,200 |
| Painter | |||
| – Small | $1,300 | $3,800 | $2,000 |
| – Medium | $2,600 | $7,200 | $4,900 |
| – Large | $4,100 | $15,500 | $9,800 |
| Landscaper | |||
| – Small | $883 | $1,548 | $1,200 |
| – Medium | $2,341 | $4,759 | $3,400 |
| – Large | $4,068 | $10,436 | $7,200 |
| Handyman | |||
| – Small | $1,900 | $3,700 | $2,700 |
| – Medium | $7,100 | $10,650 | $7,900 |
| – Large | $13,400 | $20,500 | $16,600 |
| Carpenter | |||
| – Small | $1,600 | $4,700 | $2,700 |
| – Medium | $5,700 | $10,100 | $7,900 |
| – Large | $10,700 | $22,600 | $16,700 |
| General Contractor | |||
| – Medium | $3,600 | $12,200 | $5,700 |
| – Large | $7,100 | $16,600 | $9,600 |
| – XL | $17,600 | $38,800 | $22,400 |
| Contractor Revenue | Typical Premium Range |
|---|---|
| $150,000 | $1,500 – $7,500 |
| $500,000 | $5,000 – $25,000 |
| $1 million | $10,000 – $50,000 |
| $2.5 million | $25,000 – $125,000 |
For a small Kansas contractor with $150K in annual revenue, general liability premiums often fall between $1,500 – $7,500 annually. Medium contractors around $500K in revenue may spend $5,000 – $25,000 depending on their risk attributes. And large Kansas contractors with over $1 million in revenue can expect to invest $10,000 – $50,000 or more for their general liability coverage.
Key factors that influence general liability insurance costs for Kansas contractors
– Type of work – Certain types of higher risk contracting work like roofing, plumbing, and electrical work often have insurance premiums 25-50% above less hazardous contractors. The bodily injury exposures are greater.
– Revenues – Contractors with higher annual revenues have greater overall risk exposure. Insurance companies use revenue as a proxy for a business’s size and relative risk level. Higher revenue equals higher premiums.
– Claims history – Contractors with past general liability claims will see their premiums increased at renewal time, especially if the claims were large or frequent. Too many claims may make coverage unavailable.
– Business experience – New contractors are viewed as higher risk and often pay 20%+ more compared to experienced contractors with 5+ years in business. More experience equals lower rates.
– Risk transfer – Requiring subcontractors to carry general liability insurance and getting proof of coverage helps transfer risk. This may reduce a contractor’s own premiums.
– Policy limits – Higher liability policy limits mean increased premiums, but lower limits may expose contractors to potentially significant gaps in coverage for large claims.
– Deductibles – Choosing a higher deductible (like $5k or $10k) reduces premiums but increases the out-of-pocket costs for the contractor on each claim.
– Insurance company – The insurer’s financial strength, loss payout reputation, and local reputation will impact rates. Comparing insurers is wise.
Workers Compensation Insurance Costs in Kansas
Workers’ compensation insurance covers employee injuries, medical costs, lost wages, and rehabilitation services for job-related illnesses and accidents. Kansas ranks among the more affordable states for workers’ compensation costs.
| Low | High | Average | |
| Electrician | |||
| – Small | $840 | $1,838 | $1,050 |
| – Medium | $2,363 | $5,198 | $3,150 |
| – Large | $3,675 | $8,138 | $5,250 |
| Plumber | |||
| – Small | $1,340 | $2,931 | $1,675 |
| – Medium | $3,769 | $8,291 | $5,025 |
| – Large | $5,862 | $12,981 | $8,375 |
| Painter | |||
| – Small | $1,173 | $2,565 | $1,466 |
| – Medium | $3,298 | $7,255 | $4,397 |
| – Large | $5,130 | $11,359 | $7,328 |
| Landscaper | |||
| – Small | $992 | $2,170 | $1,240 |
| – Medium | $2,790 | $6,138 | $3,720 |
| – Large | $4,340 | $9,610 | $6,200 |
| Handyman | |||
| – Small | $3,683 | $8,057 | $4,604 |
| – Medium | $10,359 | $22,790 | $13,812 |
| – Large | $16,114 | $35,682 | $23,021 |
| Carpenter | |||
| – Small | $2,853 | $6,241 | $3,566 |
| – Medium | $8,024 | $17,654 | $10,699 |
| – Large | $12,482 | $27,640 | $17,832 |
| General Contractor | |||
| – Medium | $11,050 | $24,171 | $13,812 |
| – Large | $17,265 | $37,983 | $23,020 |
| – XL | $32,228 | $71,362 | $46,040 |
Typical workers’ comp premiums for Kansas contractors may range from:
| Contractor Payroll | Typical Premium Range |
|---|---|
| $50,000 | $1,000 – $2,500 |
| $250,000 | $5,000 – $12,500 |
| $500,000 | $10,000 – $25,000 |
| $1 million | $20,000 – $50,000 |
A contractor with a $50,000 annual payroll may spend around $1,000 – $2,500 for their workers’ compensation coverage. A medium-sized contractor with a $250,000 payroll could invest $5,000 – $12,500. And a large contractor with over $1 million in payroll may pay over $20,000 annually for their workers’ comp coverage.
Key factors that influence workers’ compensation insurance costs for Kansas contractors
– Payroll – The total payroll and number of employees are factored into premium calculations. Higher payroll equals higher premiums.
– Job classification – The type of work performed by employees is classified by risk. High risk work like roofing has higher rates than office work.
– Experience rating – Contractors are graded on past loss history. Firms with fewer or lower cost claims get an ‘experience credit’ reducing premiums. High claims lead to a surcharge.
– Industry trends – Premium rates for the construction industry as a whole influence costs. Rates rise if industry-wide loss trends increase.
– Safety record – Contractors with strong safety programs and low injury rates can qualify for premium discounts. Poor safety leads to increased rates.
– Subcontractor coverage – Using uninsured subcontractors may raise a contractor’s own premiums to cover those exposures. Requiring subs to carry coverage helps reduce a contractor’s risk and premiums.
– State laws – Kansas has benefit, rate, and regulation mandates that directly influence workers’ comp premiums. The state dictates a portion of overall rates.
– Deductible programs – Higher deductibles lower premiums but increase out-of-pocket costs for the contractor on each claim.
– Dividend programs – Kansas has profit-sharing options that can return money to contractors with good loss experience.
– Insurance company – Premiums and services can vary among insurers. Financially stable companies with fair pricing help reduce overall costs.
Overview of Additional Contractor Insurance Coverages
Beyond general liability and workers’ compensation, Kansas contractors commonly require supplemental insurance policies:
Commercial Auto Insurance
Covers vehicles used for business purposes like trucks, vans, trailers. Typical premiums range from $1,000 – $3,000 per vehicle.
Inland Marine (Contractors Equipment) Insurance
Protects equipment and tools onsite and in transit. Typical premiums range from $750 – $2,500 annually for $10,000 to $25,000 in coverage.
Builder’s Risk Insurance
Covers construction projects while being built. Premiums often range from 0.3% to 3% of the total project value.
Surety Bonds
Required bid, performance and payment bonds for many public and large projects. Typical premiums range from 1-3% of the bond amount based on contractor qualifications.
Commercial Property Insurance
Safeguards offices, warehouses, and business properties against damage and loss. Typical premiums range from $1,000 – $15,000 annually depending on property values.
Employment Practices Liability
Defends against employment lawsuits alleging discrimination, harassment, wrongful termination. Typical premiums range from $1,500 – $5,000 annually.
Cyber Liability Insurance
Responds to data breaches, hacking incidents, electronic theft. Typical premiums range from $500 – $2,500 annually.
Pollution Liability Insurance
Covers bodily injury and property damage from pollution releases. Premiums range from $1,500 – $7,500+ depending on contractor services.
Umbrella Liability Insurance
Provides extra liability limits above primary policies. Typical premiums range from $750 – $1,500 annually per $1 million in additional coverage.
Strategies to Reduce Kansas Contractor Insurance Costs
Here are some key strategies Kansas contractors can employ to lower their insurance premiums:
– Shop coverage annually before renewal to compare rates between insurers. Look for stable, financially strong insurance carriers offering fair pricing.
– Ask about contractor-specific discounts such as safety training credits, drug-free workplace programs, early renewal discounts, or multi-policy discounts.
– Consider higher deductibles such as $5,000 to $10,000 on general liability and workers’ compensation to reduce base premiums.
– Implement strong safety protocols like OSHA training, documented compliance, and accident investigation to control workplace injuries and demonstrate risk management.
– Maintain meticulous records on employee classification, payroll, and sales revenue to receive accurate premium quotes.
– Review and control claims carefully to minimize frequency and utilize return-to-work programs to lower severity of workers’ compensation claims.
– Transfer risk through contractual indemnification and insurance requirements for subcontracted work.
– Request premium audits to ensure proper payroll categorization and experience rating. Seek adjustments if errors are found.
– Examine loss control recommendations from insurers and brokers to identify risk improvements.
Partnering with a Commercial Insurance Specialist
For busy contractors, researching insurance options on your own can be challenging. Working with an experienced local insurance broker who specializes in contractor coverage simplifies the process. They perform comparative quotes between multiple insurers to find coverage that fits your business at competitive pricing. They also provide expert counsel to weigh options and strategize ways to reduce costs while prudently managing risk.
Kansas Contractor Insurance with ContractorNerd.com
Are you a contractor looking to protect your business and secure its future? Look no further than ContractorNerd.com, your dedicated partner in contractor insurance. We understand the unique risks construction companies face and are committed to providing you with the best insurance solutions tailored to your specific needs.
Why Choose ContractorNerd.com?
1. Specialized Expertise – Our network of insurance specialists focuses exclusively on contractor businesses. They have an in-depth understanding of construction risks and insurance that benefit our clients.
2. Access to Top Markets – Over the years, we have cultivated strong partnerships with leading insurance carriers. This provides our clients with extensive market access and leverage to obtain the best coverage terms.
3. Cost-Effective Solutions – Our specialists advise on potential gaps, money saving tactics, and how to optimize coverage without overpaying. We help construct insurance programs tailored to your budget.
Don’t Leave Your Business Exposed! Partnering with ContractorNerd.com ensures you make smart insurance investments to protect your company’s future. Get a quote today and take the first step towards comprehensive and cost-effective coverage for your contracting business.