Nevada Contractor General Liability Insurance

In Nevada, all contractors who engage on building projects must have General Liability insurance.

General Liability Insurance Application

Why do contractors require General Liability insurance?

Contractor General Liability insurance is frequently required by a contractor's customer (commercial, residential, or General Contractor if operating as a subcontractor) to assure the financial ability to pay in the event of a claim

Increasingly more contractors' clients are requesting verification of their General Liability Insurance coverage. CCIS issues a Certificate of Insurance to all contractors upon the purchase of the policy, which can be used as proof of insurance. Some contractors' clients request that they be listed as an "Additional Insured" on the policy. CCIS can supply the "Additional Insured" endorsement upon request.

How much does a contractor General Liability policy cost in Nevada?

The policy cost is based on several factors, including contractor’s classification, payroll, subcontractor costs, gross receipts and location.

*Prices shown are for a one year term and based on several factors including, but not limited to, classification, payroll, subcontractor costs, gross receipts and location. Rates do not constitute an offer of coverage and are subject to change at any time. Rates may fall outside average ranges shown here due to exceptional risk factors.

Not all insurance companies use the same underwriting criteria to determine the premium of a policy. Additional underwriting criteria that may or may not be utilized includes credit score, policy age, experience, and number of years the insured has not made any claims. There are many additional coverages, deductibles, fees, taxes and exclusions that can be added to a policy which can affect the premium rate.

What does a General Liability insurance policy cover?

General Liability insurance protects contractors against financial losses caused by third-party claims for bodily injury, property damage, and personal and advertising injury. General Liability insurance protects against a wide range of potential claims, including:

• Slip and fall accidents at a construction site
• Damage to third-party property during construction
• Personal injury claims from third parties
• Advertising injury claims (such as defamation or copyright infringement)

How do claims work for contractor General Liability insurance?

General Liability policies can be occurrence or claims-made based. Occurrence policies cover claims that occur during the policy period no matter when the claim is filed. Claims-made policies cover claims only when both the occurrence and the resulting claim happen during the period the policy is in force. Claims-made policies are typically not accepted by third parties as a valid form of General Liability coverage. As such, we recommend contractors carry occurrence coverage and will focus on the claims process with these policies. 

The insurance company has a duty to defend the insured contractor but has discretion to settle any suit. If a claim is made, the contractor is responsible for paying the deductible, and the insurance company will cover the balance of damages and/or medical payments up to the policy limits.

What is a premium audit and what occurs during it?

Typically, when contractors apply for General Liability insurance, they must provide estimates for business expenses, payroll, and income, which are then used by the insurance company to determine the premium for the next period.  An insurance premium audit examines the construction business’s company's financial records (usually payroll or sales) to identify its actual risk exposure and adjusts your premium accordingly. If the size and conditions (like increased sales) of the business changes, so will the insurance requirements and the contractor may owe or be owned premium based on the changes.

Insurers may conduct premium audits at any time from one week after the policy is bound, up to the end of the policy term. If a claim is made against the policy, the insurance company is highly likely to conduct an audit.