Best Contractor Business Insurance

We analyzed commercial insurers and found the best contractor business insurance from The Hartford, biBerk, Simply Business, NEXT and Thimble. These companies balance affordability with contractor-specific coverage and strong customer service.

*We based all scores on a contractor business with two employees across professional liability, general liability, workers' comp and BOP policies.

biBerk offers contractor insurance at $173 monthly on average for essential coverages, making it the most affordable option. But for workers' comp and professional liability, NEXT and The Hartford offer better rates.

biBerk has the most affordable general liability insurance for contractors at $204 monthly, $52 less than the average contractor premium and $6 lower than the next cheapest provider.

NEXT offers the cheapest workers' comp insurance for contractors at $156 per month. The Hartford, Thimble, Progressive Commercial and Simply Business follow close behind.

The Hartford and Hiscox offer the most affordable professional liability insurance for contractors at $45 monthly, $18 less than the industry average, or 29% savings.

biBerk's business owner's policy offers the most affordable rate for contractors needing combined general liability and property coverage at $3,174 annually, $310 less than The Hartford.

Contractor business insurance costs are the following for the four most popular coverage types:

• General Liability: $256 on average per month, ranging from $222 to $298, depending on the state
• Workers' Comp: $166 on average per month, ranging from $142 to $193, depending on the state
• Professional Liability (E&O): $63 on average per month, ranging from $55 to $74, depending on the state
• BOP Insurance: $378 on average per month, ranging from $325 to $439, depending on the state

Contractors need general liability insurance to cover third-party injury and property damage claims, workers' compensation to protect employees and meet legal requirements, and professional liability coverage for errors or project failures.

You'll also need commercial auto insurance if you use vehicles for business purposes, and many clients require performance and payment bonds to guarantee project completion. If you have valuable equipment, get tools and equipment insurance to cover damage.

Here's why each coverage matters for contractors:

• General Liability: State and federal law require this coverage for independent contractors in construction, and most clients won't hire contractors without proof of coverage. Get $1 million to $2 million per occurrence and $2 million to $3 million aggregate.
• Professional Liability: Covers contractors when clients claim their work was faulty, incomplete or didn't meet specifications, protecting against workmanship lawsuits. Most contracting businesses need $500,000 to $1 million per claim.
• Workers Comp: Legally required in most states when you have employees, covering medical expenses and lost wages for work-related injuries in construction. Sole proprietors may need coverage to protect income or meet contract requirements.
• Commercial Auto: Personal auto policies don't cover business use, and contractors frequently transport expensive tools and equipment between job sites. Get a $1 million CSL (Combined Single Limit) policy for your vehicles.
• Tools and Equipment: Protects business property, tools and equipment at job sites, in transit, in storage or during installation. Get coverage that matches your tools' replacement value, usually $25,000 to $100,000.
• Surety Bonds: Required for many commercial and government projects. Performance bonds guarantee you'll complete work as specified, while payment bonds ensure subcontractors and suppliers get paid. Limits depend on your contract's value.

Your needs vary by contracting industry. Debris removal contractors need environmental liability policies due to associated risks. Construction companies should consider builders' risk insurance to protect materials used during a contract.

Here's the coverage you need for your contracting industry:

General Construction Contractor

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment/tool coverage, professional liability, umbrella policy, surety bonds and cyber liability

Recommended Coverage Levels:

Get $1 to $2 million per occurrence with $2 to $3 million aggregate for general liability to cover third-party bodily injury and property damage claims. Workers' compensation must meet state-required minimums, ranging from $100,000 to $1 million based on state requirements and employee count. Carry $1 million combined single limit for commercial auto coverage to protect company vehicles and hired/non-owned auto exposure.

Equipment coverage should match the full replacement cost of all tools and equipment, ranging from $50,000 to $500,000. Carry $500,000 to $1 million per claim for professional liability to cover design errors and omissions in construction planning. Get $5 to $10 million in excess coverage above primary policies for an umbrella policy to protect against catastrophic claims.

Surety bonds are often required by clients, typically 10% to 15% of project value with performance and payment bond requirements. Carry $500,000 to $1 million cyber liability coverage for data breaches and cyber attacks affecting business operations.

Electrical Contractors

Needed Business Insurance Types: General liability, workers' compensation, professional liability, commercial auto, tools & equipment, completed operations, product liability and cyber liability

Recommended Coverage Levels:

Carry $2 million per occurrence with $4 million aggregate for general liability—fire and shock risks drive higher limits. Workers' compensation must meet state minimums; expect higher premiums due to electrical injury risks and safety requirements. Get $1 to $2 million per claim for professional liability to cover electrical design errors that cause fires or system failures.

Carry $1 million combined single limit for commercial auto coverage with specialized tool coverage for service vehicles. Get $50,000 to $200,000 for tools & equipment coverage based on specialized electrical equipment and tool inventory value. Carry 10-year extended completed operations coverage to protect against electrical system failures after project completion.

Get $1 to $2 million product liability coverage for electrical components and materials installed during projects. Carry $500,000 to $1 million cyber liability coverage for smart building systems and IoT electrical installations.

Plumbing Contractors

Needed Business Insurance Types: General liability, workers' compensation, professional liability, commercial auto, pollution liability, tools & equipment, completed operations and product liability

Recommended Coverage Levels:

Get $1 to $2 million per occurrence with $2 to $4 million aggregate for general liability to cover water damage and flooding claims. Workers' compensation must meet state-required minimums; factor in back injury risks from heavy pipe work. Carry $1 million per claim for professional liability to cover plumbing design errors that cause water damage or system failures.

Get $1 million combined single limit for commercial auto with coverage for plumbing supplies and equipment transport. Carry $1 million per claim pollution liability coverage for sewage backups and contamination from plumbing work. Get $25,000 to $100,000 for tools & equipment coverage for specialized plumbing tools and diagnostic equipment.

Carry 5 to 10 year completed operations coverage for leaks and water damage from completed plumbing installations. Get $500,000 to $1 million product liability coverage for pipes, fixtures and plumbing materials installed.

HVAC Contractors

Needed Business Insurance Types: General liability, workers' compensation, professional liability, commercial auto, equipment coverage, pollution liability, product liability and refrigerant liability

Recommended Coverage Levels:

Get $1 to $2 million per occurrence with $2 to $3 million aggregate for general liability for property damage from HVAC installations. Workers' compensation must meet state minimums; expect higher rates for refrigerant and heavy equipment risks. Carry $500,000 to $1 million per claim for professional liability for HVAC system design errors and efficiency failures.

Get $1 million combined single limit for commercial auto with specialized coverage for HVAC equipment transport. Get $50,000 to $150,000 for equipment coverage for HVAC tools, diagnostic equipment and installation machinery. Carry $500,000 to $1 million per claim pollution liability coverage for refrigerant leaks and environmental contamination.

Get $1 million product liability coverage for HVAC units, ductwork and system components installed. Carry specialized refrigerant liability coverage of $500,000 to $1 million for EPA violations and refrigerant handling incidents.

Roofing Contractors

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment coverage, completed operations, umbrella policy, product liability and weather delay coverage

Recommended Coverage Levels:

Carry $2 million per occurrence with $4 million aggregate for general liability—fall risks and property damage exposure drive higher limits. Workers' compensation must meet state minimums; expect much higher rates due to extreme fall hazards and injury frequency. Get $1 million combined single limit for commercial auto with coverage for material transport and specialized roofing vehicles.

Get $75,000 to $250,000 for equipment coverage for ladders, scaffolding and specialized roofing equipment. Carry 10-year extended completed operations coverage to protect against roof leaks and weather-related failures. Get $5 to $10 million umbrella policy excess coverage—roofing work creates high-value property damage potential.

Carry $1 to $2 million product liability coverage for roofing materials, shingles and waterproofing products installed. Get weather delay coverage for business interruption protection for weather-related project delays and material damage.

Concrete/Masonry

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment coverage, completed operations, environmental liability, product liability and professional liability

Recommended Coverage Levels:

Get $1 to $2 million per occurrence with $2 to $3 million aggregate for general liability for structural damage and construction defects. Workers' compensation must meet state minimums; factor in heavy lifting injuries and silica dust exposure risks. Get $1 million combined single limit for commercial auto with coverage for concrete mixer trucks and heavy material transport.

Get $100,000 to $500,000 for equipment coverage for concrete mixers, masonry tools and heavy construction equipment. Carry 5 to 10 years completed operations coverage for structural integrity issues and concrete/masonry settlement problems. Carry $500,000 to $1 million per claim environmental liability for concrete washout and silica dust contamination issues.

Get $1 million product liability coverage for concrete, mortar and masonry materials used in construction. Carry $500,000 to $1 million professional liability coverage for structural design errors and engineering consultation services.

Landscaping

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment coverage, environmental liability, pesticide/herbicide liability, tree care liability and completed operations

Recommended Coverage Levels:

Get $1 to $2 million per occurrence with $2 to $3 million aggregate for general liability for property damage from landscaping and tree work. Workers' compensation must meet state minimums; expect higher rates for chainsaw injuries, falls from trees and equipment accidents. Get $1 million combined single limit for commercial auto with coverage for landscaping trucks, trailers and equipment transport.

Get $25,000 to $100,000 for equipment coverage for mowers, chainsaws, stump grinders and landscaping tools. Carry $500,000 to $1 million per claim environmental liability for soil contamination and chemical runoff from landscaping activities. Carry $500,000 to $1 million per claim pesticide/herbicide liability coverage for chemical application errors and environmental damage.

Get $1 to $2 million tree care liability coverage for tree removal, trimming and arborist services with property damage potential. Carry 2 to 5 years of completed operations coverage for plant warranty claims and landscaping installation failures.

Painting Contractors

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment coverage, pollution liability, professional liability, product liability and lead paint liability

Recommended Coverage Levels:

Get $1 million per occurrence with $2 million aggregate for general liability for property damage from paint overspray and accidents. Workers' compensation must meet state minimums; factor in fall risks from ladders and scaffolding work. Get $1 million combined single limit for commercial auto with coverage for paint supply transport and mobile equipment.

Get $15,000 to $50,000 for equipment coverage for spray equipment, ladders and painting tools. Carry $500,000 per claim pollution liability coverage for paint fume exposure and chemical contamination issues. Carry $500,000 per claim professional liability for color-matching errors and surface preparation mistakes.

Get $500,000 to $1 million product liability coverage for paint products and coating materials applied. Carry specialized lead paint liability coverage of $1 to $2 million for lead abatement work and RRP (Renovation, Repair, Painting) compliance.

Demolition/Debris Removal Contractors

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment coverage, environmental liability, umbrella policy, asbestos/lead liability and explosive coverage

Recommended Coverage Levels:

Carry $2 to $5 million per occurrence with $4 to $10 million aggregate for general liability—extreme property damage risks from demolition work. Workers' compensation must meet state minimums; expect much higher rates for extreme hazards from structural collapse and heavy machinery. Get $1 to $2 million combined single limit for commercial auto with coverage for heavy demolition equipment and debris hauling vehicles.

Get $200,000 to $1 million or more for equipment coverage for excavators, wrecking balls and specialized demolition machinery. Carry $2 to $5 million per claim environmental liability for asbestos, lead and hazardous material contamination from demolition activities. Get $10 to $25 million umbrella policy excess coverage—catastrophic damage potential from demolition accidents.

Carry specialized asbestos/lead liability coverage of $2 to $5 million for hazardous material abatement and contamination cleanup. Carry $5 to $10 million specialized explosive coverage for controlled demolition using explosives and blasting operations.

Flooring Contractors

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment coverage, professional liability, product liability, completed operations and installation coverage

Recommended Coverage Levels:

Get $1 million per occurrence with $2 million aggregate for general liability for property damage during flooring installation. Workers' compensation must meet state minimums; factor in knee injuries and repetitive stress from flooring work. Get $1 million combined single limit for commercial auto with coverage for flooring material transport and installation equipment.

Get $20,000 to $75,000 for equipment coverage for sanders, nailers and specialized flooring installation tools. Carry $500,000 per claim professional liability for flooring design errors and subfloor preparation mistakes. Get $500,000 to $1 million product liability coverage for flooring materials, adhesives and finishes installed.

Carry 5-year completed operations coverage for flooring installation defects, warping and finish failures. Carry specialized installation coverage protection for measurement errors and material waste from incorrect installations.

Drywall/Insulation Contractors

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment coverage, professional liability, product liability, dust/debris coverage and completed operations

Recommended Coverage Levels:

Get $1 million per occurrence with $2 million aggregate for general liability for property damage from drywall dust and construction debris. Workers' compensation must meet state minimums; expect higher rates for repetitive lifting injuries and respiratory exposure risks. Get $1 million combined single limit for commercial auto with coverage for drywall and insulation material transport.

Get $25,000 to $100,000 for equipment coverage for lifts, sanders, spray equipment and drywall tools. Carry $500,000 per claim professional liability for framing errors and insulation installation mistakes affecting energy efficiency. Get $500,000 product liability coverage for drywall, insulation materials and joint compounds used in construction.

Carry specialized dust/debris coverage protection for cleanup costs and property damage from construction dust and debris. Carry 3 to 5 years of completed operations coverage for drywall cracking, insulation settling and moisture-related issues.

Security/Alarm Contractors

Needed Business Insurance Types: General liability, workers' compensation, commercial auto, equipment coverage, professional liability, product liability, completed operations and installation coverage

Recommended Coverage Levels:

Get $1 to $2 million per occurrence with $2 to $4 million aggregate for general liability for property damage during security system installation. Workers' compensation must meet state minimums; factor in electrical work risks and property access injuries. Carry $1 to $2 million per claim professional liability for security system design errors and inadequate protection failures.

Get $1 million combined single limit for commercial auto with coverage for service vehicles and security equipment transport. Get $50,000 to $200,000 for equipment coverage for cameras, alarms, access control systems and installation tools. Carry $1 to $3 million technology E&O coverage for software failures, system integration errors and technology service mistakes.

Carry $1 to $5 million cyber liability coverage for data breaches affecting customer security systems and monitoring services. Get false alarm coverage protection against municipal fines and emergency response fees from system malfunctions.

Solar Installation Contractors

Needed Business Insurance Types: General liability, workers' compensation, professional liability, commercial auto, equipment coverage, product liability, performance guarantee and cyber liability

Recommended Coverage Levels:

Get $2 million per occurrence with $4 million aggregate for general liability for roof damage and electrical hazards from solar installations. Workers' compensation must meet state minimums; expect higher rates for roof work and electrical installation risks. Carry $1 to $3 million per claim professional liability for solar system design errors affecting energy production and efficiency.

Get $1 million combined single limit for commercial auto with coverage for solar panel transport and installation equipment. Get $75,000 to $300,000 for equipment coverage for solar panels, inverters and specialized installation equipment. Carry $2 to $5 million product liability coverage for solar panels, inverters, mounting systems and electrical components installed.

Carry performance guarantee coverage for solar system underperformance and energy production shortfalls over 20 to 25 years. Get $500,000 to $2 million cyber liability coverage for smart inverter and monitoring system cyber attacks.

Specialty/Custom Contractors

Needed Business Insurance Types: General liability, workers' compensation, professional liability, commercial auto, errors & omissions, equipment coverage, artisan coverage and materials coverage

Recommended Coverage Levels:

Get $1 to $3 million per occurrence with $2 to $6 million aggregate for general liability based on specialty work complexity and client requirements. Workers' compensation must meet state minimums; rates vary based on specific specialty trade risks and skill requirements. Carry $1 to $2 million per claim professional liability for custom design errors and specialized construction technique failures.

Get $1 million combined single limit for commercial auto with coverage for specialized tools and custom material transport. Get $500,000 to $2 million per claim errors & omissions for consultation services and custom project design mistakes. Equipment coverage must match the full replacement value of specialized equipment, ranging from $50,000 to $500,000 or more.

Carry specialized artisan coverage protection for unique craftsmanship work and irreplaceable custom installations. Materials coverage should cover high-value specialty materials during transport, storage and installation phases of custom projects.

Here's how to find the best and cheapest business insurance for your contractor company.

The Hartford is the best insurer for contractor insurance, while biBerk offers the cheapest option. Get quotes from Simply Business, NEXT and Thimble. For the best deal, consult agents and similar businesses, research costs and companies, and compare multiple quotes.

We answer common questions about contractor business insurance:

Contractors face unique risks that generic business insurance rankings can't address. You need insurers who understand construction site hazards, equipment theft and the liability exposures that come with physical labor. We built our methodology around the coverage gaps that hit contractors hardest and the pricing realities of high-risk industries.

• Affordability (50% of score): Contractors pay some of the highest business insurance rates in any industry. We weighted affordability heavily because even small rate differences add up to thousands of dollars annually. The lower a company's costs compared to competitors based on our base profile for four core coverage types, the better the company scores.
• Customer service (30% of score): When job site accidents happen, you need fast claims processing to keep projects moving. We scored providers on customer satisfaction using industry studies, customer review forum ratings and public forum sentiment from sites like Reddit, focusing on how well insurers handle construction-specific claims.
• Coverage (15% of score): Standard business policies often exclude the equipment coverage and specialized liability protection contractors need. We scored business insurance providers based on flexibility, payment options and actual coverage, prioritizing insurers offering contractor-specific endorsements like tools and equipment protection.
• Financial stability (5% of score): Construction claims can be expensive, and you need an insurer that'll pay when disaster strikes. Using financial stability ratings from AM Best and Moody's, we created a rating to judge how likely companies are to pay claims compared to competitors.

All pricing in this article uses this base profile to represent most small contractor businesses:

Three-person business with two employees

• Coverage: $1 million per occurrence and $2 million aggregate for general liability, workers' comp and professional liability. BOP includes the same limits plus $5,000 of business property coverage.
• $150,000 in payroll
• $300,000 annual revenue