Selective Insurance
For Minnesota independent contractor insurance, Selective Insurance is easily our top pick. Sixty percent of the content they write in 27 states pertains to contractors’ insurance. They make it so easy, with quick approval, and the cost is exceptionally low. Their financial rating by AM Best is A (Excellent). With assets approaching 2.9 billion and as the 38th-largest property-casualty insurance company, they are poised for continued greatness. If you’re looking for Minnesota independent contractor insurance, be sure to get a price quote from Selective Insurance.
Some of their best pricing is for contractors such as painting, drywall, general contractors, paper contractors, custom home builders, interior carpentry, masonry, tile and stone, exterior carpentry, excavation, and much more.
Main Street America
Main Street America has surprised us. With an excellent policy that automatically includes many of the bells and whistles, it has easily become our 2nd company of choice. They became part of American Family Insurance in 2020 and are rated “A” (Excellent) for financial strength by AM Best. With that merger, American Family Insurance became the 13th largest property and casualty company in America. This now allows them to distribute products through independent agents.
We see them very competitively writing with masonry contractors, carpentry, painting, interior decorators, drywall, deck builders, janitorial services, flooring contractors, electricians, siding installers, subcontractors, remodelers, and more.
Acuity Insurance
Acuity’s trademark is “wholeheartedly for you”. Since 1925, Acuity Insurance has protected individuals, families, businesses, and contractors with innovative insurance products and best-in-class customer service. Being “A+” rated and having over $5 billion in assets, you can count on their financial strength over the long term.
We see them targeting handyman contractors, painters, door-to-door salesmen, auto transport services, HVAC contractors, plumbers, apartment buildings, and many other businesses.
United Fire Group
Based in Cedar Rapids, Iowa, United Fire Group has become a nationally recognized insurance company. They were founded in 1946 and are represented by over 1,200 independent agents across the country. With just under one billion in assets, they are ranked 76th among the top 200 property casualty writers in the United States. They hold a financial strength rating of “A” by AM Best.
United Fire Group has an interesting appetite for business. They LOVE contractors of many types. Contractors include electricians, plumbers, general contractors, interior carpenters, custom home builders, and paper contractors. But they also seek craft brewers, used car dealers, lessor risks (commercial rental properties), and barber and beauty salons.
Travelers
It seems Travelers Insurance has been around for around 165 years. They are “A+” rated by AM Best and have one of the best reputations in the property and casualty industry. According to the Insurance Information Institute, Travelers was the largest issuer of business insurance policies when measured by premiums written.
Travelers offers unique liability insurance policies for contractors with special features and benefits when compared to general liability policies for other businesses. That includes coverage for working on a client’s job site, errors and omissions, and different coverage for a specific job or project.
Travelers offers a wide range of flexible insurance options and coverages. Odds are there is a policy or combination of policies that would meet your business’s needs.
We see Travelers competitively writing for various services, including kitchen remodelers, house cleaners, carpet cleaners, septic tank cleaners, plumbers, electricians, flooring contractors, painters, paving contractors, refrigeration contractors, and many more.
Integrity Insurance
Integrity Insurance might not be a name you have heard of, but they are doing big things in Minnesota contractors’ insurance.
Integrity Mutual Insurance has been helping policyholders since 1933. They started by insuring farmers and, together with Grange Insurance Company, grew to sell insurance in 13 states in 2001. Integrity Insurance is “A” rated by AM Best and offers contractors insurance as well as business, auto, home, and life insurance.
We see Integrity Insurance competitively writing Minnesota independent contractor insurance, including services such as landscaping, snow plowing, HVAC contractors, concrete contractors, deck builders, electricians, drywall contractors, dryer vent cleaning, janitorial services, lawn care, tile and stone installers, low voltage contractors, window cleaning, painters, and many more.
Secura Insurance
Secura Insurance is making insurance genuine again. Based out of Neenah, Wisconsin, Secura Insurance operates in 12 states. They were founded in 1900 and provide flexible, customized options for contractors, businesses, auto homes, farms, agribusiness, and nonprofits.
Secura Insurance is ”A” rated by AM Best and is on Ward’s 50 list for safety, consistency, and performance. Great Place also recognizes Secura as a ” Great Place to Work, WELCOA, and “World’s Greatest!” for its uncommon workplace culture.
We see them doing an outstanding job for contractors such as plumbers, painting contractors, landscapers, deck builders, HVAC contractors, janitorial services, lawn care, swimming pool contractors, snow removal, refrigeration, and paving contractors. They write all types of businesses, and recently they have become our go-to for lessors’ risks (commercial building insurance).
Am Trust
AmTrust was founded in 1998 and was making a name for itself. It now has over 5,000 employees and serves 60 countries. They are committed to small-business insurance and believe that as you get bigger, you must also get better.
AmTrust is sustainable with an “A-“ rating from AM Best. Establishing a digital strategy early, through a series of acquisitions, makes a company to watch. There has never been a better time to do business with AmTrust.
What we have been seeing from this company is fantastic. Providing contractors with general liability, commercial auto, and workers’ compensation. Contractors include landscapers, lawn services, snow removal, masonry, plumbing, electricians, concrete contractors, door & window installers, subcontractors, flooring contractors, appliance repair & service, painters, paving contractors, land grading, gutter installation & repair, and many more. AmTrust is a monoline workers’ compensation insurance rock star. Contractors, restaurants, craft breweries, offices (clerical), school bus companies, cities, janitorial services, accountants, auto repair shops, and auto body shops, to mention a few, are all on AmTrust’s radar.
North Star Mutual Insurance Company
North Star Mutual is now based in Cottonwood, MN, and was founded in the 1920s. Known for its stability, consistency, and financial soundness, North Star Mutual is expanding its footprint. They now write insurance policies in Minnesota, South Dakota, North Dakota, Iowa, Kansas, Oklahoma, Nebraska, and Wisconsin.
North Star Mutual Insurance Company is “A+” rated by AM Best and has been on Ward’s 50 Top Performing Property-Casualty Insurance Companies.
Small contractors & independent contractors trust North Star’s contractor insurance program. Here is a list of the types of contractors they like: residential carpenters, interior carpenters, carpet and rug installers, cable TV installation, door & window installers, driveway, parking, sidewalk paving or repaving, fence erection, interior decorators, grading of land, office furniture installation, janitorial, lawn care, landscaping, masonry, painting, paperhanging, plastering & stucco work, plumbing, refrigeration, septic tank systems (installation, service or repair), sign painting, tile and stone, window cleaning and more.
State Fund Mutual Insurance Company (SFM)
State Fund Mutual Insurance Company is the most prominent workers’ compensation insurer in Minnesota. Over 25,000 employers choose SFM for their workers’ compensation insurance needs, and 96% of customers stay with them year after year.
SFM is rated “A-” (Excellent) by AM Best. Businesses and contractors choose to purchase their workers’ compensation from SFM because SFM is the work comp expert.
Contractors, with or without payroll (Minnesota Ghost or Waiver Workers’ Compensation Insurance Policy), purchase their contractor workers’ compensation insurance through SFM. Contractors in Minnesota often claim they don’t need work comp because they don’t have employees. Well, it depends on who is asking. If it is the state of Minnesota, the answer is “No” unless you have employees. However, most general contractors will want a certificate of workers’ compensation insurance. The reason is Minnesota’s state statutes, which hold general contractors responsible for providing workers’ compensation insurance benefits to their subcontractors and employees. When a contractor needs a work comp certificate but does not have employees, they purchase a Minnesota Ghost or Waiver Workers’ Compensation Insurance Policy. This is a zero-payroll policy, which can cost roughly $234 to $670 per year. As with all workers’ comp policies, you are subject to an audit at the end of the year. If you can prove you have no employees or payroll, you may be eligible for a refund.
FAQs
What Is Minnesota Independent Contractor Insurance?
Minnesota Independent contractor insurance is most commonly general liability insurance. General liability covers bodily injury and property damage. But independent contractors may need more than just this. They might need coverage for tools and equipment, commercial auto/trailer, workers’ compensation insurance, or even a bond.
Do Minnesota Independent Contractors Need to Carry Insurance?
No, Minnesota does not have a law requiring you to. However, if you are licensed through the Minnesota Department of Labor & Industry, you do. Contractors, such as plumbers, electricians, and remodelers, are usually licensed.
Carrying Minnesota independent contractor insurance is undoubtedly a good idea; don’t put your assets at risk. Plus, most of the clients and general contractors will require it. Most will want you to have a $1 million general liability insurance policy. If you’re working for larger general contractors or companies, they might want more. They often request special endorsements (add-ons) and additional policies. You should be aware of these factors and have them taken into account before signing a contract.
What Does General Liability Insurance Cover?
General liability insurance covers bodily injury and property damage claims for which you may be liable. Insurance policies do not cover everything. One of the most common exclusions is “Your Work”. Insurance policies usually exclude your work, meaning that anything other than what you are working on could be covered. A good example is that you build a deck, and two years later, there is water damage to the ceiling and walls in the home’s lower level. It was discovered that the flashing was improperly installed. The general liability policy would respond to the damages, but not the wrongly installed flashing.
General liability insurance policies offer different coverage limits you can select. Limits like $300,000/$600,000, $500,000/$1,000,000, or $1,000,000/$2,000,000. The $1,000,000/$2,000,000 limits are the most commonly sold. The first figure is the per-occurrence limit or per-claim limit. The second figure is the aggregate limit or per-policy-year limit.
These policies can also come with a property damage deductible. Typical deductibles are $250, $500, and $1,000. It can be higher for larger contractors to help keep the cost down. Having no property damage deductible is ideal.
How Much Does Minnesota Independent Contractor Insurance Cost?
The cost of general liability insurance for businesses typically ranges from $481 to $861 per year. If you are a general contractor subcontracting out most of your work, or a roofer, you might be looking at $1,900+, depending on subcontractor costs, materials, and gross sales.
Pricing can vary by state, gross sales, sub costs, employees, type of contractor, claims history, and other factors. Requesting a price quote is the only way to know exactly what your costs will be.
How Did We Choose Minnesota’s Best Independent Contractor Insurance Companies?
We work with 50 different companies, and some excel in independent contractors’ insurance, while others do not. The most significant factors we considered were insurance company size, financial stability ratings, ease of doing business, satisfaction ratings, claims service, and cost.
Not all insurance companies are created equal. When you buy cheap independent contractor insurance, that is precisely what you might receive: cheap. Good value means a competitive price, excellent service, and fair claim settlements.
