General Liability Policy Rating and Limits for Artisan Contractors

Read about General Liability insurance pricing and limits for artisan contractors.

General Liability Policy Rating and Limits for Artisan Contractors

Artisan contractors are vital to modern life and commerce. Tectonic advances accompanied by both the Industrial Age and the Information Age have not outdistanced the ingenuity and survival of skilled craftspeople. Modern human society needs the contributions of artisan contractors, and artisan contractors need liability insurance to operate in modern society.

General Liability insurance provides liability protection for common exposures, such as loss due to accidental slips, trips, or falls of third parties. It also protects and defends against third party claims for damages due to the artisan contractor’s product or completed operations. Please note workmanship is not covered.

General Liability insurance rating factors for artisan contractors.

Insurance companies rate artisan contractors based on class and size. For example, artisan contractors engaged in plumbing, carpentry, or electrical have greater liability exposure than artisan contractors who specialize in pet grooming, soap making, or handyperson repair.

The size refers to payroll. If the artisan contractor is a one-person, owner-operated business, usually a flat premium is charged based on a minimum payroll amount determined by the insurance company. For artisan contractors that have at least one employee, a rate based on employee payroll applies, and the General Liability policy is typically subject to annual audit. An additional premium may be due upon audit, if the employee payroll was more than estimated at policy inception.

Sample General Liability insurance pricing for illustration only
(based on sample policy limit of $1,000,000. per occ./$2,000,000. agg.)

*Estimated Annual Payroll of $100,000.00 is comprised of:
$ 30,000.00  applies to owner
$ 70,000.00  applies to 2 employees

**Estimated Annual Payroll of $500,000.00 is comprised of:
$ 30,000.00  applies to owner
$ 470,000.00  applies to 10 employees

Any non-employees hired by the artisan contractor are required to have their own General Liability coverage. If they do not, the artisan contractor’s insurance company will charge an additional premium, based on the amount that the non-employee was paid.

General Liability Policy Limits for artisan contractors.  

Usually, a $1,000,000. per occurrence/$2,000,000. aggregate applies. Lower limits are available, however, some insurance companies will not write a General Liability policy for an artisan contractor below $500,000. per occurrence/$1,000,000. aggregate.

Depending on the size and exposures of the artisan contractor, higher limits should be considered, including Umbrella Liability limits.

Richey-Barrett Insurance is your Trusted Choice Independent Insurance Agent for artisan contractors. Call us today to discuss your account. We are experienced in writing package policies (Property Insurance, General Liability Insurance, and Auto Insurance) for artisan contractors.