Business Insurance for General Contractors in Nebraska

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Learn about business insurance requirements and the most common policies for general contractors in Nebraska.

 

Which policies are required for general contractors in Nebraska?

 

Depending on the types and requirements of your work, general contractors may be required to obtain a few different types of business insurance. If your business owns a vehicle, you may be required by the state of Nebraska to obtain commercial auto insurance.

 

If you have a physical location with a commercial lease, it's crucial to protect your business by purchasing general liability insurance. In addition, more and more property managers require you to purchase general liability insurance. Commonly purchased by general contractors in Nebraska, general liability insurance can protect your business from expenses associated with common mishaps, such as customer property damage and injuries.

 

Of the 50 states in the U.S., Nebraska is one of the 39 that are required to have a Workers’ Compensation insurance policy on its books. Contractors who work for public employers must provide workers compensation insurance, where private employed contractors do not need to have such policies but will still benefit from having them. This type of insurance covers lost wages and medical bills for any injuries sustained on the job related to construction projects either way.

 

Additionally, you may need builder's risk insurance or surety bonds , depending on your clients and type of work.

What are the most common insurance policies for general contractors in Nebraska?

As a general contractor, it's smart to purchase the different types of insurance you need regardless of state requirements. It's best to protect yourself against liabilities that may (will) arise. General contractors often buy these policies.

Commercial
Auto Insurance

You can protect your general contracting company's vehicles with commercial auto insurance. This type of policy not only covers property damage and medical bills during an accident, but it also covers vehicle theft, weather damage, and vandalism.

Commercial Umbrella Insurance

You can save money by bundling your commercial property insurance with your business owner's policy (BOP). By adding commercial umbrella insurance to your general liability policy, you can boost coverage even further.

Professional Liability Insurance

In the event of a lawsuit arising from a professional mistake, such as missing a deadline on a construction project, professional liability insurance provides protection. This type of policy is also called errors and omissions insurance (E&O).

Contractors Tools
& Equipment Insurance

Contractor’s tools and equipment insurance protects a general contractor’s saws, nail guns, drills, and other construction equipment. Equipment that moves from one place to another can be insured using this policy or inland marine insurance.

Worker's
Compensation

If you own a construction or home improvement business in Nebraska that has employees, your business is required to carry workers’ compensation insurance. This is important because when an employee is injured on the job, workers' compensation can help pay for medical bills and lost wages.

General Liability
Insurance

General liability insurance is a critical component of a general contractor’s protection portfolio. This type of policy covers damage to client property and client injuries. It covers the costs related to claims of bodily injury, property damage or personal injury, like libel or slander. Commercial leases often require this coverage. 

Surety
Bonds

In the event a contractor is not able to fulfill his or her obligations, surety bonds guarantee the client's reimbursement. Bid bonds, performance bonds, and payment bonds are the most common types of surety bonds. The contractor pays a fee to have a surety bond provider guarantee the contract.

Builder's Risk
Insurance

A Builder’s risk insurance (also known as course of construction insurance) helps protect your construction projects from certain kinds of property damage. It can cover fires, vandalism, equipment theft, and other damage done to a structure still under construction. It's part of a successful risk management program.