For construction companies in Nebraska, 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 Nebraska 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 Nebraska 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.
Nebraska contractors should prioritize comprehensive insurance. Understanding general liability contractors insurance guards against third-party claims. A guide to workers’ compensation for contractors is crucial for employee protection. Our guide on small contractors insurance considerations provides valuable insights.
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 contractors, for example, have large liability exposures from potential falls and will have higher premiums.
– Years in business – Contractors who are new to the business often pay higher premiums until they establish a track record. Insurance companies view experience as an indicator of lower risk. A contractor who has been in business for 5 years is seen as less risky than a new startup.
– Claims history – Prior claims made by a contractor will often result in increased premiums. Too many claims can make a contractor uninsurable. Contractors with past liability or workers comp claims will likely pay more for insurance.
– 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. Higher limits add premium costs.
– Number of employees – More employees on payroll increases the risk exposure for things like workers’ comp. Rates will be higher as a result. A contractor with 10 employees has more exposure than a solo operator.
– Safety record – Contractors with poor safety records or OSHA violations can expect to pay higher premiums. Proactive safety reduces risk. Staying incident-free lowers insurance rates.
– Business size – Larger contracting firms often get lower rates based on economies of scale and broader risk distribution. Smaller firms pay more. A large contractor can spread risk over more projects.
– Insurance provider – Rates can vary significantly between insurance companies. Competitive bidding is wise. An insurer with specialized expertise in contractor risks may offer better pricing.
The key is to maintain excellent records, safety practices, qualifications, and choose appropriate coverages to help minimize insurance costs. Controlling risk lowers premiums. Let’s explore typical costs in more detail.
Small, Medium, Large Contractor Benchmarking in Nebraska
The key below displays our definition for small, medium and large contractors in Nebraska alongside typical insurance coverages. This helps provide you with a general benchmark to help you 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 |
Typical Insurance Coverages
– General Liability
– Workers’ Compensation
– Commercial Auto
– Inland Marine
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 the specific contractor business. Now let’s take a deeper look at common policies.
General Liability Insurance Costs in Nebraska
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 settlements should you be sued. Typical premiums range from 1% to 5%+ of revenue for $1 million per occurrence limits.
| Low | High | Average | |
| Electrician | |||
| – Small | $700 | $2,100 | $1,300 |
| – Medium | $2,500 | $6,900 | $3,600 |
| – Large | $5,200 | $12,500 | $6,700 |
| Plumber | |||
| – Small | $3,000 | $7,500 | $5,000 |
| – Medium | $12,100 | $18,150 | $12,800 |
| – Large | $20,400 | $32,500 | $25,900 |
| Painter | |||
| – Small | $1,000 | $2,800 | $1,500 |
| – Medium | $3,100 | $5,700 | $4,300 |
| – Large | $5,800 | $10,700 | $8,200 |
| Landscaper | |||
| – Small | $839 | $2,024 | $1,300 |
| – Medium | $1,993 | $6,652 | $3,500 |
| – Large | $3,611 | $12,099 | $6,900 |
| Handyman | |||
| – Small | $1,800 | $3,150 | $2,400 |
| – Medium | $5,900 | $10,400 | $7,700 |
| – Large | $11,800 | $19,200 | $15,500 |
| Carpenter | |||
| – Small | $2,100 | $3,675 | $2,600 |
| – Medium | $6,700 | $10,050 | $7,700 |
| – Large | $12,300 | $20,500 | $16,200 |
| General Contractor | |||
| – Medium | $3,300 | $5,400 | $3,900 |
| – Large | $4,600 | $9,600 | $6,800 |
| – XL | $9,600 | $21,100 | $15,800 |
Nebraska General Liability Premium Ranges
| Contractor Revenue | Est. 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 |
What Does General Liability Insurance Cover?
– Third-party bodily injury
– Third-party property damage
– Personal injury (libel, slander, invasion of privacy)
– Advertising injury
– Medical payments
Key factors that influence general liability insurance costs for Nebraska contractors:
– Type of work – Certain types of contracting work like roofing, plumbing, and electrical work are seen as higher risk by insurers and thus have higher insurance premiums. More hazardous work leads to higher liability insurance costs.
– Revenues – Contractors with higher annual revenues will generally pay more for liability coverage as they have greater exposure. Insurance companies use revenue as a proxy for a business’s size and risk level.
– Claims history – Contractors with past claims filed against them will see their premiums increased, especially if the claims were costly. Too many claims can make a contractor uninsurable. A clean claims history will help lower rates.
– Business experience – Newer contractors are viewed as higher risk and will pay more until they establish a track record. Contractors who have been in business for many years tend to get lower rates.
– Risk transfer – Insured’s who take steps to transfer or reduce risk like requiring subcontractors to carry insurance, securing performance bonds, and requiring proof of insurance from subcontractors will pay lower premiums.
– Policy limits – Higher liability policy limits equal higher premiums. But lower limits may expose the contractor to uncovered losses from larger claims.
– Deductibles – Choosing a higher deductible, the amount the contractor pays on a claim before insurance kicks in, can significantly reduce premiums.
– Insurance company & competition – The insurer’s financial strength and loss payout reputation as well as the level of competition in the contractor insurance market can impact premium pricing.
Workers Compensation Insurance Costs in Nebraska
Workers’ compensation covers employee injuries and illnesses experienced on the job. It pays for medical treatment, lost wages, disability benefits and rehabilitation services for injured employees. For contractors, premiums can range significantly. Nebraska ranks among the more affordable states for workers’ comp.
| Low | High | Average | |
| Electrician | |||
| – Small | $1,091 | $2,387 | $1,364 |
| – Medium | $3,068 | $6,751 | $4,091 |
| – Large | $4,773 | $10,569 | $6,819 |
| Plumber | |||
| – Small | $1,934 | $4,231 | $2,418 |
| – Medium | $5,440 | $11,967 | $7,253 |
| – Large | $8,462 | $18,737 | $12,088 |
| Painter | |||
| – Small | $1,785 | $3,905 | $2,232 |
| – Medium | $5,021 | $11,046 | $6,695 |
| – Large | $7,811 | $17,295 | $11,158 |
| Landscaper | |||
| – Small | $1,408 | $3,080 | $1,760 |
| – Medium | $3,960 | $8,712 | $5,280 |
| – Large | $6,160 | $13,640 | $8,800 |
| Handyman | |||
| – Small | $2,986 | $6,533 | $3,733 |
| – Medium | $8,399 | $18,478 | $11,199 |
| – Large | $13,066 | $28,931 | $18,665 |
| Carpenter | |||
| – Small | $2,497 | $5,462 | $3,121 |
| – Medium | $7,022 | $15,449 | $9,363 |
| – Large | $10,923 | $24,188 | $15,605 |
| General Contractor | |||
| – Medium | $8,959 | $19,598 | $11,199 |
| – Large | $13,999 | $30,797 | $18,665 |
| – XL | $26,131 | $57,862 | $37,330 |
Nebraska Workers’ Compensation Premium Ranges
| Payroll | Est. Premium Range |
|---|---|
| $50,000 | $1,000 – $5,000 |
| $250,000 | $5,000 – $15,000 |
| $500,000 | $10,000 – $30,000 |
| $1 million | $20,000 – $60,000 |
What Does Workers’ Compensation Insurance Cover?
– Injured employee medical treatment
– Lost wages
– Disability benefits
– Rehabilitation services
– Death benefits
Key factors that influence workers’ compensation insurance costs for Nebraska contractors:
– Payroll – The total payroll and number of employees are factored into workers’ comp premium calculations. Higher payroll equals higher premiums.
– Job classification – The type of work performed by employees is classified into risk categories. Higher risk work like roofing or electrical has higher premium rates than office work.
– Experience rating – Contractors are graded on their past loss history. Those with fewer or lower cost claims get an ‘experience credit’ reducing premiums. High claims lead to an ‘experience debit’ increasing premiums.
– Industry rate trends – Premium rates for the construction industry as a whole influence costs. Rates rise if industry-wide losses increase.
– Safety record – Contractors with strong safety programs and low injury rates can qualify for premium discounts for being ‘safety certified’. Poor safety leads to increased premiums.
– Subcontractor coverage – Contractors using uninsured subcontractors will pay higher premiums to cover those worker exposures. Requiring subs to carry their own workers’ comp lowers a contractor’s risk and costs.
– State laws – States have different laws around benefits, exclusions, rate-setting and premium discounts which influence workers’ comp costs. State rate mandates directly impact what contractors pay.
– Policy deductible – Like general liability, a higher deductible lowers workers’ comp premiums but increases the portion the contractor pays for each claim.
– Insurance company – The financial strength, service, and pricing of the insurance carrier influences overall costs. A stable insurer with fair rates lowers premiums.
Overview of Additional Insurance Coverages and Typical Premiums
Beyond general liability and workers’ compensation, Nebraska contractors require supplemental policies:
Commercial Auto Insurance
Covers vehicles used for business purposes. Pays for property damage and bodily injury caused by the contractor’s vehicles. Typical premiums range from $1,000 – $3,000 per vehicle.
What Does Commercial Auto Insurance Cover?
– Liability (bodily injury and property damage)
– Medical payments
– Uninsured/underinsured motorist
– Comprehensive & collision damage
Inland Marine (Tools) Insurance
Protects tools and equipment onsite and in transit. Pays for theft or damage. Typical premiums range from $1,000 – $3,000 annually for $10,000 to $25,000 in coverage limits.
What Does Inland Marine Insurance Cover?
– Theft
– Vandalism
– Fire
– Flood
– Collision
Surety Bonds
Required for public works and many projects. Bonds guarantee contract performance and payment. Premiums range from 1-3% of the bond amount based on credit.
What Do Surety Bonds Cover?
– Job performance
– Payment to subcontractors
– Adherence to contract terms
Commercial Property Insurance
Safeguards offices, warehouses, and business properties. It pays for damage to buildings, tools, and equipment on premises. Typical premiums range from $1,000 – $10,000 annually.
What Does Commercial Property Insurance Cover?
– Fire
– Wind
– Hail
– Vandalism
– Theft
– Water damage
Employment Practices Liability Insurance
Defends against employment lawsuits around issues like wrongful termination, discrimination, and harassment. Typical premiums range from $2,000 – $5,000 annually.
What Does EPLI Cover?
– Defense costs
– Settlements
– Judgments
– Damages
– Court fees
Cyber Liability Insurance
Responds to data breaches, hacking, and electronic theft. Pays costs to notify victims and restore data. Typical premiums range from $500 – $2,000 annually.
What Does Cyber Insurance Cover?
– Hacker damage and theft
– Cyber extortion
– Data breach response
– Business interruption
Umbrella Liability Insurance
Provides extra protection above other policy limits. Adds an additional layer of limits on top of general liability and auto. Typical premiums range from $750 – $1,500 annually per $1 million in additional coverage.
Strategies to Control Contractor Insurance Costs
There are a number of strategies Nebraska contractors can employ to reduce their insurance costs while still protecting their business. Here are some to consider:
Increase Deductibles
Choosing higher deductibles lowers premiums substantially. Just be sure you have adequate cash reserves to cover those deductibles if a loss occurs.
Maintain Good Records
Insurers scrutinize loss history, safety plans, licensure status, and credentials. Buttoned up record keeping demonstrates lower risk.
Improve Safety
A focus on safety with strict compliance, training, and zero tolerance for shortcuts can significantly cut insurance costs over time.
Transfer Risk
Requiring subs and vendors to carry adequate insurance and name you as an additional insured can reduce risk and your own insurance costs.
Bundle Insurance
Purchasing multiple policies from the same insurer often results in discounted packaged pricing.
Ask About Contractor Credits
Insurers offer a wide array of credits for things like safety certification, drug testing, supervision, and education that can directly reduce your premium.
Shop Around
Don’t just renew. Regularly market your account to find insurers competing for your business with better pricing.
Raise Deductibles
Consider higher deductibles on property/casualty risks to lower premiums while self-insuring smaller losses.
Seek Group Discounts
Joining trade associations or qualifying for an insurer’s contractor group plan can lead to discounts.
Nebraska 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 your business faces and are committed to providing you with the best insurance solutions tailored to your specific needs.
Why Choose ContractorNerd.com?
1. Specialized Expertise: When it comes to contractor insurance, one size does not fit all. Our network of insurance specialists is exclusively focused on contractor insurance, ensuring that they have a deep understanding of your industry and its intricacies. We know the challenges you face, and we’re here to help you navigate them.
2. Access to Top Markets: Over the years, we have cultivated strong partnerships with the leading insurance providers. This means that when you choose ContractorNerd.com, you gain access to a wide network of trusted insurers. Our connections allow us to swiftly secure multiple quotes tailored to your unique requirements.
3. Cost-Effective Solutions:We understand the importance of cost-effective coverage for your business. Our specialists not only help you find the right insurance but also advise on potential gaps and cost-saving opportunities. This way, you can optimize your protection without breaking the bank.
Don’t Leave Your Business Exposed. Partnering with ContractorNerd.com ensures that you’re making a smart investment in your business’s future. Get a quote today and take the first step towards comprehensive and cost-effective protection.