For construction companies in New Hampshire, 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 comprehensive guide will uncover typical insurance costs for New Hampshire 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 New Hampshire allows you to thoroughly 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 that protect your company’s interests.
New Hampshire contractors need robust insurance solutions. Our guide to general liability for contractors is essential for risk management. Navigating contractors workers compensation protects your workforce. Our guide on finding affordable contractors insurance offers comprehensive information.
Key Factors Influencing Insurance Costs for Contractors
Several important factors can influence insurance costs for contractors in New Hampshire:
– Type of work – The specific type of contracting work being performed (construction, plumbing, electrical, HVAC, etc.) greatly impacts the risk exposure and therefore the insurance rates. Generally, higher risk work carries higher insurance premiums.
– Years in business – Contractors who are brand new to the business often pay higher premiums until they establish a solid track record. Insurance companies view experience as an indicator of lower risk. Once a contractor demonstrates longevity, premiums tend to decrease.
– Claims history – Prior claims made against a contractor will frequently result in markedly increased premiums, especially if the claims were large or frequent. Too many claims can render a contractor uninsurable altogether. Maintaining a clean claims history helps lower rates.
– Coverage limits – Higher levels of coverage for core policies like general liability and workers’ compensation mean higher overall premiums. Contractors must weigh the cost versus the amount of protection needed for their business. Minimum legal limits may not be adequate.
– Number of employees – Having more employees on the payroll increases the overall risk exposure for policies like workers’ compensation. More employees equals greater exposure, which translates to higher premiums.
– Safety record – Contractors with poor safety records or OSHA violations can expect to pay significantly higher premiums. Conversely, those with robust safety programs and low injury rates often qualify for valuable premium discounts for maintaining safe worksites.
– Business size – In general, larger contracting firms are able to get lower insurance rates based on economies of scale and spreading the risk over more work and employees. Smaller contractors tend to pay more for coverage.
– Insurance provider – Rates can vary widely between insurance companies based on things like financial strength, customer service, and claims handling. Wise contractors compare quotes from multiple highly-rated insurers.
The key is maintaining excellent records, safety practices, qualifications, experience, and choosing appropriate coverages to help minimize insurance costs. Controlling risk is critical to lowering premium expenses across all policies.
Small, Medium, Large Contractor Benchmarking in New Hampshire
The table below displays typical insurance coverages securing small, medium and large contractors in New Hampshire. Reviewing this contractor insurance program benchmarking data provides helpful context on standard exposures to insure as your business grows.
| 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 actual premiums fluctuate based on your unique risk 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 can certainly achieve rates below the averages and toward the lower end of the ranges we provide in the benchmarking that follows.
If uncertain about your specific exposures, we encourage you to consult with a specialist. The experts in our network specialize in helping New Hampshire contractors maximize savings by accessing the right carrier partners and tailoring coverage to match the contractor’s risk profile. Their expertise can prove invaluable to new contracting businesses.
General Liability Insurance Costs in New Hampshire
General liability, also known as contractor’s liability, protects your business in the event a third party alleges property damage or bodily injury arising from your construction operations or activities. It covers both legal defense costs and settlements/judgments.
| Low | High | Average | |
| Electrician | |||
| – Small | $1,000 | $2,100 | $1,500 |
| – Medium | $3,500 | $5,250 | $4,000 |
| – Large | $5,600 | $10,800 | $7,800 |
| Plumber | |||
| – Small | $4,800 | $11,500 | $7,500 |
| – Medium | $16,500 | $24,750 | $19,300 |
| – Large | $31,200 | $51,700 | $38,800 |
| Painter | |||
| – Small | $1,500 | $4,100 | $2,300 |
| – Medium | $4,800 | $7,600 | $6,300 |
| – Large | $8,900 | $16,600 | $12,100 |
| Landscaper | |||
| – Small | $1,453 | $3,214 | $2,000 |
| – Medium | $3,545 | $7,703 | $5,700 |
| – Large | $5,640 | $13,497 | $11,000 |
| Handyman | |||
| – Small | $2,000 | $6,600 | $3,600 |
| – Medium | $5,700 | $16,300 | $10,000 |
| – Large | $12,100 | $31,100 | $19,800 |
| Carpenter | |||
| – Small | $1,800 | $5,900 | $3,300 |
| – Medium | $5,800 | $12,300 | $9,300 |
| – Large | $10,600 | $27,900 | $19,800 |
| General Contractor | |||
| – Medium | $5,800 | $14,600 | $8,600 |
| – Large | $11,300 | $20,200 | $14,500 |
| – XL | $27,000 | $47,500 | $33,500 |
For New Hampshire contractors, typical general liability premiums range from 1% to 5% or more of annual revenue, given a standard $1 million per occurrence coverage limit. Actual rates vary based on specific risk attributes.
New Hampshire General Liability Premium Ranges
| Annual Revenue | Typical Premium Range at $1M Limit |
|---|---|
| $150,000 | $1,500 – $7,500 |
| $500,000 | $5,000 – $25,000 |
| $1,000,000 | $10,000 – $50,000 |
| $2,500,000 | $25,000 – $125,000 |
Several important factors can influence general liability insurance costs for contractors in New Hampshire:
– Type of work – Certain contracting trades like roofing, plumbing, electrical, and HVAC are seen as inherently higher-risk by insurers, resulting in higher insurance rates. Hazardous work correlates directly with more expensive general liability coverage.
– Revenues – Contractors with higher total annual revenues will generally pay more for liability insurance since they have greater overall business exposure. Insurers use revenue as a proxy for both company size and risk level.
– Claims history – Contractors with past liability claims filed against them will see noticeable increases in premiums, especially following severe or frequent claims. Too many claims may render a contractor uninsurable altogether.
– Experience – Newer contractors are viewed as higher risk and will pay higher premiums until they establish a strong track record in business. Contractors operating for many years tend to eventually qualify for lower rates.
– Risk transfer – Taking proactive steps to transfer or reduce risk – like requiring subcontractors to carry adequate liability insurance and securing performance bonds on projects – typically results in lower premiums.
– Policy limits – Choosing higher liability coverage limits means greater protection but also increased premiums. Lower limits may expose the contractor to uncovered losses from larger claims.
– Deductibles – Selecting a higher deductible amount (the portion the contractor pays on a claim before insurance responds) can significantly decrease premiums. This must be balanced against increased risk assumption.
– Insurer – The financial strength, reputation, and pricing of the insurance carrier influences overall costs. Stable insurers with strong contractor expertise help provide coverage at lower rates.
Workers Compensation Insurance Costs in New Hampshire
Workers’ compensation insurance covers employee injuries, illnesses, and fatalities that arise within the scope of their work duties. For contractors, premiums can range significantly based on class codes, payroll, claims history, and other factors. New Hampshire ranks among the more affordable states for workers’ compensation coverage.
| Low | High | Average | |
| Electrician | |||
| – Small | $1,539 | $3,366 | $1,923 |
| – Medium | $4,328 | $9,521 | $5,770 |
| – Large | $6,732 | $14,906 | $9,617 |
| Plumber | |||
| – Small | $1,898 | $4,151 | $2,372 |
| – Medium | $5,337 | $11,742 | $7,117 |
| – Large | $8,303 | $18,384 | $11,861 |
| Painter | |||
| – Small | $2,476 | $5,417 | $3,096 |
| – Medium | $6,965 | $15,323 | $9,287 |
| – Large | $10,834 | $23,990 | $15,478 |
| Landscaper | |||
| – Small | $1,704 | $3,728 | $2,130 |
| – Medium | $4,793 | $10,544 | $6,390 |
| – Large | $7,455 | $16,508 | $10,650 |
| Handyman | |||
| – Small | $3,751 | $8,206 | $4,689 |
| – Medium | $10,550 | $23,211 | $14,067 |
| – Large | $16,412 | $36,340 | $23,445 |
| Carpenter | |||
| – Small | $2,950 | $6,454 | $3,688 |
| – Medium | $8,298 | $18,255 | $11,064 |
| – Large | $12,907 | $28,581 | $18,439 |
| General Contractor | |||
| – Medium | $11,254 | $24,617 | $14,067 |
| – Large | $17,584 | $38,684 | $23,445 |
| – XL | $32,823 | $72,680 | $46,890 |
Typical workers’ compensation premiums for New Hampshire contractors range from 1.5% to 10% of gross payroll, depending on the risk classification of work performed. Higher risk trades like roofing or electrical work have markedly higher rates than clerical classifications. Standard policy limits of $500,000 are recommended.
New Hampshire Workers’ Comp Premium Ranges
| Annual Payroll | Typical Premium Range |
|---|---|
| $50,000 | $750 – $5,000 |
| $250,000 | $3,750 – $25,000 |
| $500,000 | $7,500 – $50,000 |
| $1,000,000 | $15,000 – $100,000 |
Several key variables influence workers’ compensation insurance costs for New Hampshire contractors, including:
– Payroll – Gross annual payroll and number of employees factor heavily into premium calculations, as this measures overall worker exposure. Higher payroll equals greater risk and higher premiums.
– Class codes – The occupation classification of employees is categorized into risk pools. Higher risk trades face assigned risk rates up to 10x higher than light trade classifications like clerical work.
– Experience rating – Businesses are graded on their past loss histories. Contractors with fewer or smaller claims get an ‘experience credit’ reducing premiums. High frequency or severity of claims leads to a surcharge, increasing premiums.
– Industry trends – Rising claims severity and frequency across the entire construction industry tends to exert upward pressure on premium rates for all contractors.
– Safety record – Contractors with extensive safety programs and low injury rates may qualify for valuable safety dividends, reducing workers’ compensation premiums by 5-10% in some cases.
– Subcontractors – Using uninsured subcontractors exposes the general contractor to higher premiums. Requiring subs to carry their own coverage helps limit such exposures.
– Premium mod – The premium modification factor compares your actual losses to average losses in your risk classes, adjusting your rate up or down accordingly.
– Policy deductible – Selecting a higher deductible reduces premiums but increases the out-of-pocket cost for each claim. Small contractors should be cautious about assuming high deductibles.
– Insurer – The experience, financial strength, and contractor expertise of your insurance company impacts overall premiums and service quality.
Additional Common Contractors Insurance Coverages
Beyond general liability and workers’ compensation policies, contractors in New Hampshire require several other essential insurance coverages:
Commercial Auto Insurance
Covers vehicles used for business purposes like company trucks. Typical premiums range from $500 – $3,000 annually per vehicle depending on factors like vehicle type, radius of operations, driver safety, and more. Minimum limits of $500,000 are recommended.
Inland Marine (Tools & Equipment) Insurance
Protects tools, equipment, and machinery used for contracting work. Premiums generally range from $500 – $5,000 annually depending on the value of equipment insured and coverage options selected. Minimum limits of $10,000 – $25,000 are common.
Builder’s Risk Insurance
Covers construction projects under contract against damage during the course of construction. Premiums range from 0.3% – 2% of the completed value, depending on project size and duration. This protects the contractor’s financial interest in the project.
Contract Surety Bonds
Required proposal, license, permit and performance bonds for public works and many large projects. Premiums typically range from 1-3% of the total bond amount, based on personal and business credit factors.
Commercial Property Insurance
Safeguards permanent business locations like offices, warehouses, and yelled. Typical premiums range from $500 – $10,000 annually depending on property values, location, and coverage options. All-risk coverage with replacement cost valuation is recommended.
Cyber Liability Insurance
Responds to data breaches, hacking incidents, and electronic theft exposures. Premiums typically range from $500 – $2,500 based on revenue. Limit options usually start around $100,000.
Employment Practices Liability
Protects against employment lawsuits around discrimination, harassment, wrongful termination, etc. Premiums normally range from $1,000 – $5,000 annually for $100,000 – $250,000 limits. Deductible options of $5,000 – $10,000 are common.
Umbrella Liability Insurance
Provides additional liability limits above primary policies like general liability and auto. Typical premiums range from $500 – $2,000 annually per million in added coverage. Umbrellas of $1 million – $5 million are usually recommended.
Contractors in New Hampshire should regularly review their insurance portfolio with an expert broker to ensure adequate, cost-effective coverage across all these essential policies as their business grows and exposures evolve.
Finding the Right Contractor Insurance in New Hampshire
Are you a New Hampshire contractor looking to fully protect your business and build a foundation for success? Partnering with the right insurance advisor makes all the difference.
The contractor insurance specialists at ContractorNerd.com have extensive experience helping New Hampshire contractors like you identify the precise insurance coverage your company needs at highly competitive rates.
Why Choose ContractorNerd.com?
– Industry Expertise – Our network includes only dedicated construction insurance experts, not generalists. We live and breathe contractor insurance daily.
– Carrier Access – We maintain relationships with dozens of highly-rated regional and national insurance carriers, ensuring you get matched with the best provider for your needs.
– Cost Savings – We don’t just place coverage. Our advisors act as ongoing advocates for your business, finding savings and optimizing your insurance program over time.
– Policy Review – We thoroughly evaluate your existing contractor insurance portfolio to check for potential gaps, redundancies and optimization opportunities.
– Risk Control – Our risk management consulting helps you reduce claim frequency and severity through improved safety and risk transfer best practices.
Don’t leave your New Hampshire contracting business exposed. Partner with ContractorNerd.com to start building comprehensive, affordable insurance protection tailored to your company’s unique size, services, and risk profile.
Get a free quote today to safeguard the future of your construction business.