Insurance is essential for protecting your contracting business in North Dakota. This guide outlines key insurance requirements, costs, and coverage options based on our analysis of actual quotes from leading carriers.
Lay a strong foundation with our overview of general contractor coverage.
General Liability Insurance for North Dakota Contractors
General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for North Dakota contractors:
| Revenue Size | Average Premium | % of Revenue | Favorable Rate | Potential Savings |
|---|---|---|---|---|
| $500K | $4,800 | 1.0% | $3,700 | 23% |
| $1M | $10,800 | 1.1% | $7,400 | 31% |
| $2.5M | $26,800 | 1.1% | $18,600 | 31% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- Typical mix of residential and commercial work
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for North Dakota Contractors
North Dakota requires workers’ compensation coverage for all contractors with employees. Based on our analysis, North Dakota contractors have some of the lowest workers’ compensation costs in the nation:
- Average cost per employee: $1,628 annually
- Cost per $100K payroll: $3,510 (lowest in the US)
Key factors affecting premiums:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating
Common contractor classification codes and approximate rates:
- Code 5606 (Project Manager/Supervisor): $2-3 per $100 of payroll
- Code 5645 (Residential Construction): $4-6 per $100 of payroll
- Code 5403 (Commercial/Large Projects): $6-9 per $100 of payroll
Additional Business Insurance for Contractors in North Dakota
1. Commercial Auto Insurance
- Typical cost: $1,000-$4,000 per vehicle annually
- Required for all business-owned vehicles
- Coverage limits from $500K to $1M recommended
- Protects against accidents, damage, and liability claims
- Additional coverage for hired and non-owned vehicles available
2. Tools & Equipment Coverage
- Annual premiums: $1,500-$5,000+ for $15k-$50k coverage
- Protects both owned and rented equipment
- Coverage follows equipment to all jobsites
- Includes theft, damage, and vandalism protection
- Optional rental reimbursement coverage available
3. Commercial Property Insurance
- Annual premiums: $2,000-$20,000+ based on property value
- Protects offices, storage facilities, and workshops
- Coverage for fire, theft, vandalism, and weather damage
- Business interruption coverage available as add-on
- Equipment breakdown protection option
4. Builder’s Risk Insurance
- Premium: 0.15-0.75% of total project value
- Covers projects under construction
- Protection against fire, weather, and vandalism
- Materials coverage during transit and storage
- Extensions available for soft costs and delay expenses
5. Surety Bonds
- Higher rates may apply for contractors with limited experience
- Cost: 1-3% of total bond amount
- Required for certain government and private projects
- Premium varies based on credit and experience
- Options include bid bonds, performance bonds, and payment bonds
Get North Dakota Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for North Dakota contractors. Our platform offers:
- Instant online quotes from top-rated carriers
- Side-by-side coverage comparisons
- Contractor-specific expertise and guidance
- Streamlined application process
- Ongoing policy management support
- Claims advocacy when needed
Our team of contractor insurance specialists understands North Dakota’s unique requirements and can help you:
- Optimize coverage levels based on your specific risks
- Find competitive rates through our carrier network
- Bundle policies for additional savings
- Ensure compliance with state regulations and contract requirements
To get started with tailored quotes for your North Dakota contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.