What is the difference between a general contractor and a remodeler?
While both general contractors and remodelers work in construction, their roles differ significantly in scope. General contractors manage entire construction projects, often coordinating multiple subcontractors, from foundation work to roofing. Remodelers, on the other hand, focus on improving existing structures and spaces. Think upgrades to a home’s kitchen (home remodeler), a bathroom overhaul (bathroom remodeler), or transforming a basement into a livable space (home remodeler). Both remodelers and contractors can work on residential and commercial projects.
These projects require different tools, skills, and sub-contractors, which requires different insurance coverage.
Whereas general contractors might handle new builds and comprehensive projects, remodelers bring creativity and craftsmanship to revive existing spaces. Because of this distinction, remodelers face unique risks that require tailored insurance coverage.
Note: Currently, Thimble only offers residential remodeling business insurance coverage that allows for up to 25% incidental commercial work (exceptions and exclusions apply – see terms for details).
What is the difference between a handyman and a remodeler?
Both handymen and remodelers work to improve residential properties, but their scopes of work are very different. For example, Handymen specialize in small-scale repairs and maintenance tasks, such as fixing leaky faucets, patching drywall, or installing light fixtures. Their focus is on quick, efficient solutions for minor issues around the home. Remodelers, however, tackle larger, more complex projects like redesigning a kitchen, modernizing a bathroom, or converting an attic into a functional living space.
Similar to the distinction between a General Contractor and a Remodeler, these jobs often involve advanced or skilled craftsmanship, and coordination across multiple trades, as well as different tools, and even different sub-contractors, which create unique risks for each type of business. Understanding these differences is essential to ensure you are selecting the right activity and coverage options for your business.
What kind of insurance does a remodeler need?
A remodeling insurance policy includes multiple coverages to address the specific risks in your line of work. Here’s an overview of key types of insurance every remodeling contractor should have:
Commercial General Liability (CGL)
CGL is the foundation of remodelers insurance. It covers:
- Third-party, non-employee bodily injury: Covers medical costs if someone is injured as a result of your work.
- Third-party property damage: Covers accidental damage caused to a client’s property as a result of a remodeling job.
- Personal and advertising injury: You need to advertise your remodeling business, so you need coverage for situations like being liable for defamation of a competitor’s reputation.
Commercial Property Insurance
If you own or lease an office or workspace, this coverage protects your owned physical space and your contents from damage caused by events like fires, storms, or theft.
Business Interruption Insurance
Remodeling is time-sensitive, and interruptions can hurt your bottom line. If you purchase commercial property insurance, you can add coverage for your loss of income during periods when your business can’t operate due to covered loss or damage to your property on your premises.
Hired & Non-Owned Auto Coverage
Sometimes remodeling jobs require vehicles to transport tools and materials. This coverage protects against liability issues when you or your team use rented or loaned vehicles for business purposes.
Workers’ Compensation
If you hire employees, workers’ comp is a must! It covers medical expenses and lost wages if an employee is injured on the job. In some states, this coverage is required. Be sure to check the statutory mandates in your area.
Business Equipment Protection
Remodeling tools and equipment are expensive. This coverage helps protect your investments, whether they’re stolen, accidentally damaged, or lost.
Cyber Insurance
Data breaches are becoming a growing concern. If you manage customer information digitally, cyber insurance helps protect your business against data-related threats and liability.
Auto Liability Insurance
While Thimble doesn’t currently offer this type of coverage, we recommend it for remodelers who own vehicles for transportation during projects. Auto liability insurance is required for registered vehicles in almost all states.
What does general liability insurance for remodelers cover?
General liability insurance is vital for remodelers. It covers several areas to protect you from financial risks that come with your day-to-day operations:
Third-party, non-employee bodily injury
If a delivery person trips over a toolbox at your worksite and sustains injuries, general liability insurance can cover their medical expenses.
Third-party property damage
Accidentally dropped a tool and dented a client’s car? Your insurance helps ensure you’re not paying out of pocket for repairs.
Investigation and Defense of Claims
If a claim leads to legal action, your commercial general liability policy will provide an investigation of the claim and a defense where necessary, regardless of fault.
Personal and Advertising Injury
If a competitor thinks one of your remodeling business ads has damaged their reputation, you may be liable for defamation.
How much is liability insurance for a remodeler?
Liability insurance for remodelers varies depending on factors such as:
- The size of your business
- The types of projects you take on
- The level of coverage you choose
- Where your business operates
Typically, remodeling contractors can expect to pay anywhere from $50 to $200* per month for general liability coverage. Exact premium amounts vary depending on your unique factors like location, revenue, number of employees, etc. However, Thimble’s flexible pay-as-you-go policies ensure you only pay for the coverage you need when you need it, making insurance affordable and convenient.
Why Thimble is the Best Fit for Remodelers
When it comes to insurance for remodelers, Thimble is reinventing the game. We provide flexible, affordable coverage with no long-term contracts for remodelers. Customizable options give you the freedom to get only the coverage you need. Build your custom policy by choosing coverage by the job, or coverage by the hour, day, month or year.
With Thimble, you can purchase a policy online in minutes and instantly access your certificate of insurance. Join thousands of remodelers who trust Thimble to protect their businesses.
*Costs vary depending on many factors. Early cancellation charges may apply to policies that cancel before their expiration date.
Still not sure whether your business falls under Remodeling or another category, like Handymen or Contractor work? Work with a broker producer that can help you navigate the unique needs of your business.
