How much does door and window installer insurance cost?
Key door and window contractor insurance policies and their expected costs
Here are the top door and window installer business insurance policies and their average monthly costs:
- General liability insurance: $83 per month
- Business owner's policy (BOP): $105 per month
- Workers' compensation insurance: $228 per month
- Commercial auto insurance: $177 per month
- Contractor's tools and equipment insurance: $14 per month
- Professional liability insurance: $65 per month
- Commercial umbrella insurance: $92 per month
- Surety bonds: $8 per month
Our figures are based on the median policy cost for door and window installers who request quotes through TechInsurance. The median provides a better estimate of your expected insurance rates because it excludes outlier high and low premiums.
General liability insurance for door and window installers
Door and window installation businesses spend an average of $83 per month, or around $1,000 per year, for general liability insurance.
General liability coverage protects your small installation business from common third-party risks, such as damage to customers' outdoor decor or bodily injury. It also covers advertising injuries, such as copyright infringement and defamation.
For example, if a pane of glass falls on a client's property and damages it, general liability would cover the repair or replacement costs of the damaged items.
Though general liability is usually not required by law for door and window installers, this policy may be required in order to sign a lease, obtain a license in your state, or work with clients.
Below is the average general liability policy for door and window installers who buy from TechInsurance:
Premium: $83 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
Most policies include product liability insurance, also called products-completed operations insurance. This policy covers harm caused by a defective product or a completed service.
Business owner’s policy for door and window installers
Construction businesses, including door and window installation businesses, pay an average of $105 per month, or $1,256 per year, for a business owner's policy (BOP).
A BOP combines your general liability and commercial property insurance coverage. This bundle typically offers a discount compared to purchasing each policy by itself.
It protects your small business against both property and liability risks, such as theft of business property or an accident that injures a client.
This is the average business owner's policy for construction businesses that buy from TechInsurance:
Premium: $105 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Door and window installation companies that qualify for a BOP are usually small and low-risk.
Many insurance companies allow policyholders to add business interruption insurance, also called business income insurance, to their business owner's policies as an endorsement.
This policy pays for lost profits and day-to-day operating expenses if a fire, storm, or other incident forces your business to close temporarily.
Medium-sized and higher-risk businesses can purchase a commercial package policy (CPP) instead of a BOP. A CPP offers more flexibility than a BOP. It costs, on average, $101 per month, or $1,217 per year.
The cost of a business owner's policy depends on the value of your business property, business size, location, policy limits, and revenue.
Workers’ compensation insurance for door and window installers
Door and window installers spend an average of $228 per month, or $2,734 annually, for workers' compensation insurance.
Workers' comp coverage pays for medical costs and disability benefits when you or an employee suffers a work-related injury or illness.
For example, if an employee trips and breaks their leg at a job site while installing a door, a workers' comp policy would cover their emergency room visit, medications, and physical therapy.
Workers' compensation coverage usually includes employer's liability insurance, which pays for legal costs related to workplace injuries.
State laws often require door and window businesses to secure workers' comp as soon as they hire their first employee, but that's not always the case.
Workers' comp is required in California and New York for every business that hires employees, in Florida for every business with four or more employees, but it's optional for most companies in Texas.
Some states, such as Florida, require sole proprietors and independent contractors in the construction industry to obtain workers' comp even if they work alone. Even when it's not required, it's highly recommended even for single-person businesses, since most health insurance plans can deny claims for on-the-job injuries.
The cost of workers' comp is based on several factors, primarily the number of employees you have and their occupational risks. It's often less expensive for businesses in states that have lower healthcare costs.
Find workers' comp requirements in your state
Commercial auto insurance for door and window installers
Construction professionals, including door and window installers, spend an average of $177 per month, or $2,121 per year, for commercial auto insurance. Almost every state requires this type of insurance for businesses that own a company vehicle.
If your business vehicle is involved in an accident, a commercial auto policy can help cover damages, including medical expenses, property repairs, and legal fees. You can also purchase comprehensive coverage to gain protection against theft, vandalism, and storm damage.
To cover your personal, rented, and leased vehicles used for business purposes, you'd need hired and non-owned auto insurance (HNOA) instead, since your personal auto insurance typically won't cover work-related accidents.
You may also need an additional policy, such as a mobile equipment endorsement, to cover certain heavy machinery vehicles, such as loaders and forklifts.
The cost of commercial auto insurance depends on many factors, including your employees' driving records, your policy limits, the number of vehicles you own, and the coverage options you choose.
Contractor’s tools and equipment insurance for door and window installers
Construction businesses, including door and window businesses, pay an average of $14 per month, or $169 yearly, for contractor’s tools and equipment insurance.
Tools and equipment coverage is a type of inland marine insurance that covers business property when it's in transit, stored off-site, or used at job sites.
This policy protects tools and equipment that are stolen, damaged, or destroyed, including glass-cutting tables, track saws, and laser measurers.
Contractor's tools and equipment insurance doesn't pay for normal wear and tear. It's designed to protect gear on the go, for items valued at $2,500 or less.
The cost of tools and equipment coverage depends mostly on the value of your tools and equipment. Another important factor is whether you choose to insure them for their actual cash value (the current value of the item) or their replacement cost (the cost of a brand-new replacement).
Professional liability insurance for door and window installers
On average, construction businesses and door and window installers pay $65 per month, or $785 per year, for professional liability insurance.
Also called errors and omissions insurance (E&O), professional liability insurance covers financial losses related to mistakes, missed deadlines, and other instances of professional negligence. This includes attorney's fees and other legal expenses if a client decides to sue over unsatisfactory work.
For example, if a door and window installation contractor recommends the wrong energy-efficiency material that doesn't meet zoning regulations, this policy would cover legal defense costs if the property owner sues for costs related to the poor advice.
This is the average professional liability policy for installers who purchase from TechInsurance:
Premium: $65 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250
If you choose to purchase a combined policy of general liability and professional liability, you'll pay an average of $111 per month, or $1,330 per year.
The cost of professional liability insurance is determined by several factors, including the coverage limits and deductible you choose, the size of your business, the type of installation work you do, and your claims history.
Commercial umbrella insurance for door and window installers
Door and window installers pay an average of $92 per month, or $1,098 yearly, for commercial umbrella insurance.
An umbrella policy helps increase the coverage of your underlying liability insurance, such as general liability, commercial auto, or employer's liability insurance. When the underlying policy reaches its limit on an insurance claim, your umbrella policy activates to provide any additional coverage needed.
Umbrella coverage is typically available in $1 million increments. You need to have another active liability policy before you can buy this coverage.
The cost of commercial umbrella insurance for your installation business depends mostly on the amount of coverage you buy. The same factors that affect the cost of the underlying policies can also influence your premium.
Surety bonds for door and window installers
The average cost of a surety bond for construction businesses, including door and window installers, is $8 per month, or $100 annually.
Surety bonds protect your clients by providing reimbursement in the event that your door and window installation business is unable to fulfill the terms of a contract or agreement. For this reason, you may be required to obtain a surety bond in order to sign a client contract.
Some states require installation professionals to have a surety bond as part of their legal requirements for a contractor's license. The bond guarantees that your work will comply with building codes and other regulations.
As with a fidelity bond, the cost of a surety bond is a small percentage of the total bond amount. Unlike typical insurance, you'll need to repay the company that issued the bond in the event of a claim.
Top factors impacting door and window installation insurance costs
Several key factors impact door and window installer insurance costs, including:
- Types of services offered: Installation businesses that offer high-risk services, such as large commercial projects with large and fragile windows, tend to have higher average costs than less risky types of work with standard windows and doors.
- Number of employees: Having more employees increases the risk of accidents, injuries, and lawsuits arising from interactions between employees and customers.
- Value of business equipment: Your commercial installation property can impact your insurance, with more expensive property requiring higher coverage limits. For example, expensive heavy machinery will cost more to insure than less expensive, budget-friendly options.
- Types of insurance products purchased: Some policies, such as general liability coverage, are less expensive than others.
- Policy limits and deductibles: How much insurance you choose to purchase will impact your insurance costs. Higher deductibles and lower limits on your policies can help you save money.
- Claims history: Previous insurance claims may signal risk to insurers, as policyholders with a history of claims are more likely to file future claims.
- Business location: Businesses in cities or neighborhoods with higher crime rates, more foot traffic, or greater exposure to severe weather often pay higher insurance rates.
- Business size and annual income: Larger businesses with greater annual revenue and more employees will generally pay more for insurance solutions than smaller businesses.
- Years of experience: The longer you and your door and window business have been operating, the less of a risk you are to insure, and the lower your insurance premiums will tend to be, according to many insurance companies.
There are some factors you can’t control when it comes to business liability insurance costs, but you and your employees can still take meaningful steps to engage in risk management and reduce claims, which can help keep your insurance costs down.
How do I get affordable door and window installer insurance with TechInsurance?
TechInsurance makes it easy for door and window installers, flooring and carpet installers, general contractors, and other construction professionals to find the right insurance for their business in three easy steps:
- Fill out a free online application with details about your business.
- Compare insurance quotes from top-rated U.S. providers in real-time.
- Choose the best policies for your business and pay the premiums to begin coverage.
TechInsurance's licensed insurance agents are available to help answer questions about your risks, state insurance requirements, and how to find cheap door and window installation insurance that matches your insurance needs.
Having the right coverage will give you peace of mind and financial protection against the common risks of your profession.
Once you've bought the insurance policies you need, you can download a certificate of insurance. Small business owners can usually get proof of insurance within 24 hours of applying for quotes.
