How Much Does Insurance Cost For General Contractors?

General contractor insurance price depends on your policy limits, your business risks, the value of your equipment, and other factors. Estimated costs are sourced from policies purchased by customers. Let’s consider 6 different insurances and the costs for general contractors.

General Liability Insurance

General contractors pay about $90 per month, or $1,090 per year, for general liability insurance. This policy gives protection against third-party injuries, third-party property damage, and advertising injuries.

General contractors can often save money by bundling general liability insurance with commercial property insurance in a business owner’s policy (BOP).

Cost per year: $1,090
Policy limit: $1 million per occurrence
Deductible: $500

Workers’ Compensation Insurance

The cost of workers compensation insurance for general is estimated to be about $265 per month, or $3,175 annually. This policy, which is required in nearly every state for businesses with employees, will help cover medical fees and lost wages for work-related injuries and injuries.

Commercial Auto Insurance

Commercial auto insurance is about $165 per month or $1,990 annually. Commercial auto insurance provides coverage for vehicles your contracting business owns. This insurance policy can help pay for property damage, medical costs in an accident, vehicle theft, and vehicle damage caused by weather and vandalism.

Median cost per year: $1,990
Policy limit: $1 million

Tools And Equipment Insurance

General contractors pay about $15 per month, or $170 annually, for contractor’s tools and equipment coverage. A form of inland marine insurance, this policy helps cover the repair or replacement of lost, stolen, or damaged tools and equipment.

Cost per year: $170
Policy limit: $5,000

Professional Liability insurance

General contractors pay a median of less than $45 per month, or $520 per year, for professional liability insurance. This policy, also known as errors and omissions insurance (E&O), protects general contractors against client lawsuits claiming unsatisfactory, negligent, late, or incomplete work.

Cost per year: $520
Policy limit: $300,000 per occurrence

Surety Bond Costs

Construction businesses and contractors pay a median premium of about $8 per month, or $100 per year, for surety bonds. A surety bond reimburses your client if you’re unable to fulfill the terms of a contract or other agreement.

Cost per year: $100
Bond amount: $10,000



How can I reduce my general contractor insurance premiums?

Insurers are always looking for new and innovative ways to save their customer’s money. One of the most common ways they do this is through bundling. Combining various coverage into one, lower-priced package. For example, if you’ve got home insurance and car insurance with a different provider, they may offer a discount on your car insurance if you get your home insurance as well.

Do I need commercial auto insurance?

All work vehicles that are utilized in your general contractor business need to be covered with commercial auto insurance. Personal auto insurance does not usually cover most types of personal activities of your personal vehicle.

Is general contractor insurance mandatory?

Depending on your location, you may be required to carry certain minimum levels of coverage for the various types of risks you are exposed to. Additionally, some clients might require that you present a Certificate of Insurance before signing a contract with them.


General contractor insurance provides peace of mind for your business. In the event that your business faces legal proceedings because of their work, General contractor insurance will cover the financial liability in order to protect you and your company from potential disaster or collapse

By understanding general contractor insurance costs and determining the particular needs of your company and your service sector, you can feel secure that your policy covers you from all potential risks and that your business is safe.

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