How Much Is Business Insurance
for General Contractors?

As a general contractor, you face innumerable risks every day. Whether it's a workplace accident or a lawsuit over poor workmanship, you could be sued for hundreds of thousands of dollars. Fortunately, by investing in general contractor insurance, you can cover this risk. Let's look at some sample insurance quotes.

Please note: the sample insurance quotes below are estimates. While these quotes represent the typical cost of insurance for a small general contracting business, your actually premiums may vary.

HOW MUCH IS
General Liability Insurance?

How Much Is General Liability Insurance?

When a customer sues you over an injury, problem with your work, or property damage, General Liability Insurance can cover the lawsuit. Say you're overseeing a renovation. What happens if a window leak damages your client's floor? When customers have disputes about your work, General Liability Insurance can cover your legal expenses and the damages you owe if you lose the lawsuit.

The typical contractor's GL Insurance costs $380 to $1,380.

Average Premiums, Deductibles and Limits on General Liability Insurance Policies for General Contractors
Name USD

Median policy premium:

$380 - $1,380

Per claim limit:

$1,000,000

Policy limit:

$2,000,000

Median policy deductible:

$1,000

To see how the cost of General Liability Insurance for general contractors compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Business Owner's Policy?

How Much Is a Business Owner's Policy?

To save money on their business insurance, many general contractors sign up for a Business Owner's Policy, which bundles two insurance policies at reduced premiums. A BOP contains General Liability and Property Insurance – two policies nearly every contractor needs to cover their lawsuit risk and protect their equipment and tools.

BOPs typically cost $500 to $639 for general contractors.

Average Premiums, Deductibles and Limits on BOP Insurance Policies for General Contractors
Name USD

Median policy premium:

$500 - $639

Per claim limit:

$1,000,000

Policy limit:

$2,000,000

Median policy deductible:

$500

HOW MUCH IS
a Surety Bond?

How Much Is a Surety Bond?

When you sign up for a general contractor's license (or other professional license) or apply for a building permit, you'll probably need a License and Permit Bond. State and local governments usually require contractors to be bonded before granting them a license.

To get bonded, general contractors typically pay $100 to $300.

Average Premiums, Deductibles and Limits on Surety Bonds for General Contractors
Name USD

Median policy premium:

$100 - $300

Median policy limit:

Varies

Median policy deductible:

Varies

HOW MUCH IS
Inland Marine Insurance?

How Much Is Inland Marine Insurance?

Inland Marine Insurance is a Property Insurance policy that covers a general contractor's tools, equipment, and supplies while they're being transported. For contractors that haul equipment to and from jobsites, this insurance covers the cost to repair or replace stolen or damaged items.

Inland Marine Insurance typically costs $500 to $759 for general contractors.

Average Premiums, Deductibles and Limits on Inland Marine Insurance Policies for General Contractors
Name USD

Median policy premium:

$500 - $759

Median policy limit:

Varies

Median policy deductible:

None

HOW MUCH IS
a Commercial Auto Insurance?

How Much Is Commercial Auto Insurance?

What would happen if you or an employee were in an auto accident? Commercial Auto Insurance covers a general contractor's legal costs and repair expenses after an accident. Because most Personal Auto Insurance policies don't cover a general contractor's vehicle when it is driven for work, you'll need Commercial Auto coverage.

Commercial Auto Insurance typically costs $1,854 to $2,846 for general contractors.

Average Premiums, Deductibles and Limits on Commercial Auto Insurance Policies for General Contractors
Name USD

Median policy premium:

$1,854 - $2,846

Median policy limit:

$1,000,000

Median policy deductible:

$500

HOW MUCH IS
Umbrella Insurance?

How Much Is Umbrella Insurance?

Umbrella Insurance adds $1 million of extra coverage to three policies: General Liability, Hired and Non-Owned Auto, and Employer's Liability (a part of Workers' Com). Here's how it works: if a GL lawsuit costs $1.5 million, but your policy only covers $1 million, Umbrella Insurance can cover the $500,000 remainder.

Umbrella Insurance typically costs general contractors $1,010 to $2,020 in annual premiums.

Average Premiums, Deductibles and Limits on Umbrella Insurance Policies for General Contractors
Name USD

Median policy premium:

$1,010 - $2,020

Median policy limit:

$1,000,000

Median policy deductible:

Varies

To see how the cost of Umbrella Insurance for general contractors compares with other industries, visit Insureon's Umbrella Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Workers' Compensation Insurance?

How Much Is Workers' Compensation Insurance?

In most states, employers are required to have Workers' Comp. In fact, you might be required to have general contractor Workers' Compensation Insurance to cover your employees even if you only hire subcontractors and independent contractors. This insurance covers medical costs and lost wages for employees who are injured during a construction project or other work-related task.

General contractor's Workman's Comp typically costs $5,723 to $7,656.

Average Premiums, Deductibles and Limits on Workers' Compensation Insurance Policies for General Contractors
Name USD

Median policy premium:

$5,723 - $7,656

Per claim limit:

$100,000

Median policy limit:

$500,000

Median policy deductible:

None

To see how the cost of Workers' Compensation Insurance for general contractors compares with other industries, visit Insureon's Workers' Compensation Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Commercial Property Insurance?

How Much Is Commercial Property Insurance?

Property Insurance reimburses GCs when their equipment or other property is lost or damaged due to…

  • Fire.
  • Theft.
  • Vandalism.
  • Covered weather events.

Contractor's Property Insurance typically costs $253 to $1,630.

Average Premiums, Deductibles and Limits on Commercial Property Insurance Policies for General Contractors
Name USD

Median policy premium:

$253 - $1,630

Median policy limit:

Varies

Median policy deductible:

$500

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