For construction companies in Ohio, 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 Ohio 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.
Ohio contractors face various risks requiring comprehensive coverage. Contractor liability insurance essentials are crucial for risk management. Contractor workers compensation insurance basics protects your employees on the job. Our guide on general contractors insurance considerations provides valuable insights.
Why Business Insurance Matters
Construction is an inherently high-risk industry. Contractors face exposures from third party bodily injury, property damage, completed operations risks, employee injuries, natural disasters, theft, cyber incidents and more. One major claim can devastate an uninsured business.
Statistics show a significant share of small businesses lack adequate insurance. Nearly 30% of small contracting firms have no general liability coverage, over 35% lack workers’ compensation, and many have large gaps in their insurance programs. This leaves them vulnerable to potentially company-ending losses.
Investing in tailored insurance prepares your company for the unexpected. The right insurance policies protect your:
– Assets – Your properties, equipment, tools, and other assets are shielded from damage or lawsuits.
– Revenue – Lost income from fires, accidents, or other incidents is covered so you can rebuild.
– Employees – Workers’ injuries and illnesses are covered by workers’ compensation insurance.
– Reputation – Liability claims against your business are handled by your insurance.
– Future – Insurance gives you the ability to recover from a major loss event.
In short, insurance gives you peace of mind and ensures your company can survive and thrive for years to come.
Key Factors Influencing Contractor Insurance Costs
Insurance premiums for contractors are based on the unique risk profile of your business. Here are some of the key factors that play a role:
Type of Work – Certain contracting fields like roofing, electrical, plumbing, and demolition are seen as higher risk and have higher base insurance rates.
Experience – Newer contractors are viewed as riskier by insurers. Once you build experience, premiums tend to decrease.
Location – Insurance rates can vary by zip code and county based on local risk factors. Urban areas often have higher premiums.
Safety Record – Contractors with OSHA violations, poor loss run history, or lack of safety programs pay higher premiums due to elevated risk factors.
Revenue Size – Higher gross revenues equals greater risk exposure, which translates into higher premiums as you grow.
Number of Employees – More employees leads to increased premiums for workers’ compensation and other policies.
Deductible Level – Choosing a higher deductible before insurance coverage kicks in reduces premiums substantially.
Insurance Company – Rates, discounts, coverages, and financial strength vary between insurers. Shopping around is wise.
Risk Transfer – Requiring subs to carry adequate insurance and risk transfer best practices lowers your premiums.
Policy Limits – Lower liability limits can slash premiums, but may expose you to gaps in coverage.
Claims History – Multiple past claims can make premiums skyrocket. Too many can lead to policy cancellation.
Credit Score – Insurers often check credit as an indicator of future claim likelihood. Poor scores mean higher rates.
The key is to implement sound risk management practices, maintain excellent records, prioritize safety, and partner with reputable subcontractors. Controlling risk is the #1 way to reduce insurance costs.
Small, Medium, Large Contractor Benchmarking in Ohio
The table below displays typical insurance coverages for small, medium and large contractors in Ohio. This provides a general benchmark to help you understand how your costs compare.
Ohio Contractor Insurance Benchmark
| 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 risk attributes like location, safety record, services, number of employees, payroll, vehicles, and revenue size. Contractors who secure tailored coverage with quality carriers via an independent insurance broker may achieve rates below these averages.
If in doubt, we encourage you to have an expert review your program. The brokers in our network specialize in helping contractors realize savings by accessing the right markets and tailoring coverage to your specific business.
Below we explore typical premium ranges for the core insurance policies contractors need.
General Liability Insurance for Contractors in Ohio
General liability, also known as CGL, is essential for protecting your business from liability claims involving 3rd party property damage or bodily injury that arise from your operations. Typical premiums range from 1% to 5%+ of gross revenue depending on your risk profile.
| Low | High | Average | |
| Electrician | |||
| – Small | $700 | $1,700 | $1,200 |
| – Medium | $2,400 | $5,100 | $3,400 |
| – Large | $4,200 | $10,700 | $6,600 |
| Plumber | |||
| – Small | $3,000 | $9,200 | $5,700 |
| – Medium | $12,100 | $18,150 | $13,700 |
| – Large | $20,600 | $40,200 | $26,700 |
| Painter | |||
| – Small | $900 | $2,800 | $1,300 |
| – Medium | $2,000 | $5,100 | $3,500 |
| – Large | $2,900 | $10,500 | $6,700 |
| Landscaper | |||
| – Small | $715 | $1,724 | $1,000 |
| – Medium | $1,894 | $3,975 | $2,700 |
| – Large | $3,379 | $8,230 | $5,500 |
| Handyman | |||
| – Small | $1,800 | $3,300 | $2,300 |
| – Medium | $6,500 | $9,750 | $7,100 |
| – Large | $12,500 | $17,200 | $14,100 |
| Carpenter | |||
| – Small | $1,600 | $4,300 | $2,500 |
| – Medium | $5,000 | $9,300 | $6,900 |
| – Large | $10,500 | $20,500 | $14,800 |
| General Contractor | |||
| – Medium | $3,100 | $4,650 | $3,600 |
| – Large | $5,400 | $8,200 | $6,500 |
| – XL | $14,000 | $36,300 | $20,800 |
For example, here are typical general liability premiums for Ohio contractors:
Ohio Contractor General Liability Costs
| Company Size | Yearly Premium Range |
|---|---|
| Small Contractor | $1,500 – $3,000 |
| Medium Contractor | $3,500 – $7,500 |
| Large Contractor | $7,500 – $20,000 |
| XL Contractor | $15,000 – $40,000 |
Some key factors that influence general liability insurance costs:
– Type of Work – Certain high-risk trades like roofing, plumbing, electrical, and demolition have higher premium rates.
– Revenue Size – Businesses with higher gross revenues pay more for liability insurance since they have greater exposure.
– Location – Insurance rates can vary significantly by zip code and county based on local risk factors.
– Experience – Newer contractors often pay the highest premiums until they build a track record over time.
– Claims History – Past losses resulting in claims will lead to increased premiums, especially if claims are large or frequent.
– Policy Limits – Contractors who opt for higher liability limits pay higher premiums. Lower limits can lead to gaps in coverage.
– Deductibles – Choosing a higher deductible amount before coverage activates substantially reduces premiums.
– Risk Transfer – Requiring subcontractors to carry adequate general liability insurance and following strong risk transfer practices helps lower a contractor’s insurance costs.
Workers Compensation Insurance in Ohio
Workers’ compensation insurance covers medical expenses and lost wages for employees who suffer job-related illnesses or injuries. Premiums vary significantly based on risk factors.
| Low | High | Average | |
| Electrician | |||
| – Small | $829 | $1,814 | $1,036 |
| – Medium | $2,332 | $5,130 | $3,109 |
| – Large | $3,628 | $8,032 | $5,182 |
| Plumber | |||
| – Small | $1,043 | $2,282 | $1,304 |
| – Medium | $2,934 | $6,455 | $3,912 |
| – Large | $4,564 | $10,107 | $6,521 |
| Painter | |||
| – Small | $1,310 | $2,866 | $1,637 |
| – Medium | $3,684 | $8,105 | $4,912 |
| – Large | $5,731 | $12,690 | $8,187 |
| Landscaper | |||
| – Small | $976 | $2,135 | $1,220 |
| – Medium | $2,745 | $6,039 | $3,660 |
| – Large | $4,270 | $9,455 | $6,100 |
| Handyman | |||
| – Small | $1,603 | $3,507 | $2,004 |
| – Medium | $4,509 | $9,919 | $6,012 |
| – Large | $7,013 | $15,530 | $10,019 |
| Carpenter | |||
| – Small | $1,684 | $3,685 | $2,105 |
| – Medium | $4,737 | $10,422 | $6,316 |
| – Large | $7,369 | $16,317 | $10,527 |
| General Contractor | |||
| – Medium | $4,810 | $10,521 | $6,012 |
| – Large | $7,515 | $16,533 | $10,020 |
| – XL | $14,028 | $31,062 | $20,040 |
Here are typical workers’ comp premium ranges for Ohio contractors:
Ohio Contractor Workers’ Comp Costs
| Company Size | Yearly Premium Range |
|---|---|
| Small Contractor | $500 – $1,500 |
| Medium Contractor | $2,500 – $5,000 |
| Large Contractor | $7,500 – $15,000 |
| XL Contractor | $20,000 – $50,000 |
Some key variables impacting workers’ compensation premiums:
– Payroll Size – Higher payroll and more employees leads to increased workers’ comp premiums.
– Employee Class Codes – The type of work employees perform is classified into risk categories. Higher risk work has more expensive insurance rates.
– Experience Mod – Businesses are graded on past loss run history. Too many claims lead to premium hikes.
– Industry Trends – Poor loss trends for the construction industry as a whole can drive up premiums.
– Safety Rating – Good safety programs and low injury rates can qualify contractors for discounted premiums.
– Premium Credits – Premium reductions are available for things like drug-free workplace programs and contractor education.
– Deductible* – Like other policies, choosing a higher deductible amount lowers premiums.
Again, strong safety and risk management practices are your best avenue to control workers’ compensation costs.
Commercial Auto Insurance for Contractors
Commercial auto insurance covers your company vehicles used for business purposes like driving to job sites. Typical premiums range from $1,000 to $3,000 per vehicle annually. Rates depend on:
– Vehicle type – Newer, well maintained vehicles get lower rates.
– Driver safety records – Drivers with clean MVRs get lower premiums.
– Usage – Local delivery vs long haul driving. Personal use allowance.
– Coverage types – Comprehensive and collision coverage increase premiums.
– Coverage limits – Higher liability limits are costlier but reduce risk gaps.
– Deductibles – Higher deductibles substantially reduce premiums.
– Discounts – Multi-vehicle and safety discounts can lower premiums.
Again, investing in well maintained vehicles, implementing fleet safety programs, and monitoring driver records are key to reducing commercial auto insurance costs.
Inland Marine Insurance for Contractors
Inland marine insurance covers equipment and tools used by contractors that are valuable or mobile in nature. This includes everything from hand tools to scaffolding, generators, cranes, dump trucks, and more.
Typical premiums range from $750 to $2,000 annually for $10,000 to $25,000 in coverage limits. Rates vary based on:
– Coverage amount – Higher levels of coverage mean higher premiums.
– Deductible amount – Choosing a higher deductible lowers premium costs.
– Equipment type – Materials or tools viewed as higher theft risks mean higher premiums.
– Storage practices – Tools left unsecured on sites overnight raise premiums due to theft.
– Transit exposure – Transporting tools from site to site increases risk = higher premiums.
Following secure equipment storage protocols and limiting exposure helps minimize inland marine insurance costs.
Surety Bonds for Contractors
Many public construction projects require surety bonds to provide project owners with financial security guarantees. Bonds help ensure contractors complete the work and pay subcontractors.
Typical surety bond costs range from 1% to 3% of the total bond amount. For a $200,000 bond, a contractor may pay a $2,000 to $6,000 premium. Rates depend on:
– Personal and business credit scores – Better credit means lower rates.
– Business longevity – Older businesses typically qualify for lower premium factors.
– Financial strength – Strong income and balance sheet means lower perceived risk.
– Past experience – A track record of completing bonded jobs earns lower rates.
Maintaining robust finances and personal credit, the right amount of company capital, and established operations helps contractors pay lower premiums for surety bonds.
Property Insurance for Contractors
Commercial property insurance protects buildings, offices, garages, equipment, completed projects, and other real property against damage from perils like fire, wind, hail, vandalism, and more.
Typical contractors property insurance premiums range from $1,000 to $5,000 annually depending on:
– Coverage type – Higher valued buildings justify broader coverage.
– Construction qualities – Materials used, age of building. Fire/wind mitigation.
– Location & exposure risks – Properties prone to wind, floods or theft have costlier premiums.
– Coverage amounts – Higher levels of coverage increase premiums.
– Deductibles – Choosing a higher deductible amount substantially reduces premium costs.
– Discounts – Multi-policy, protective device and professional association discounts help lower premiums.
Following storm safety protocols and investing in modern buildings with protective devices (alarms, sprinklers, etc.) helps minimize property insurance costs.
Additional Contractors Insurance Policies
Beyond the major lines above, additional contractors insurance policies that are important include:
Employment Practices Liability – Protects against wrongful termination, discrimination, harassment and other employment lawsuits. Typical premiums range from $1,500 to $3,500 annually.
Cyber Insurance – Responds to data breaches, hacking incidents, stolen customer information, and electronic theft. Typical premiums range from $500 to $1,500 annually.
Umbrella Liability – Provides additional liability limits above primary policies. Added peace of mind for $750 to $1,500 per million.
Errors & Omissions – Covers faulty workmanship and professional negligence claims. Important for engineering, design and other specialty services.
Pollution Liability – Covers defense and damages from pollution incidents. Important for environmental contractors and legacy exposures.
Group Health Insurance – Provides major medical insurance to employees. Eases recruitment and retains talent.
We encourage contractors to explore specialized coverages for unique risk exposures with the help of an expert insurance advisor.
How to Secure Contractors Insurance in Ohio
As this guide illustrates, there are a wide range of factors that influence contractors insurance costs. Navigating these complexities to build adequate protection for your business can be challenging.
The most effective way to secure contractor insurance in Ohio is to work with an independent insurance brokerage that specializes in the needs of construction risk.
The right insurance broker becomes an invaluable asset by:
– Analyzing your unique risks and insurance needs
– Identifying coverage gaps or redundancies in your existing program
– accessing specialized products and markets tailored for construction
– Soliciting quotes from multiple A-rated insurers to find the optimal mix of coverage and cost
– Walking you through policy differences, limits, deductibles and value-adds to make informed choices
– Saving you time by handling policy administration
– Advocating for your interests and negotiating coverage terms
– Providing expert claims assistance
In essence, the right insurance broker becomes your trusted risk management advisor – not just an agent.
Ohio Contractor Insurance with ContractorNerd.com
For contractor insurance in Ohio, look no further than ContractorNerd.com. We offer:
Dedicated Expertise – Our network consists solely of independent brokerages that specialize in contractor risks. This focused expertise provides unique insights into the nuances and needs of construction insurance.
Choice of Leading Insurers – Thanks to our broker network’s expansive access, you can secure tailored coverage at competitive rates across top insurance markets.
Custom Solutions – Whether commercial general liability, workers’ comp, business auto, or package policies, we make contractor insurance easy, convenient, and optimized for your company.
Proactive Guidance – Our brokers become valued risk advisors, identifying exposures, educating on insurance, and working to build cost-effective contractor insurance programs.
Don’t leave your hard-built business exposed and vulnerable. Partner with the dedicated construction insurance experts at ContractorNerd.com to protect what matters most – your company, employees, assets, and future.
Get an Affordable Ohio Contractor Insurance Quote
To get started building comprehensive, tailored Ohio contractor insurance for your company at competitive rates, simply request a quick quote from one of our experts.
You can expect:
– A streamlined quote process
– Choices from top-rated national and regional insurers
– Expert guidance on optional coverages to protect your business
– Identification of ways to reduce costs while closing gaps
– Policy recommendations to fit your risk profile, growth plans and budget
Don’t wait – get a quote from the construction insurance specialists at ContractorNerd.com and start building protection for your company today.