Cheapest General Liability Insurance for Contractors in 2024

As a general contractor in the construction industry, it's important to invest in general liability insurance to shield yourself against property damage or bodily injury claims that can impact your finances.

Securing your finances doesn’t have to be expensive. MoneyGeek examined a range of providers to find the cheapest general liability insurance for contractors. We analyzed insurers based on affordability, customer satisfaction, financial stability and the online quote process for LLCs and sole proprietors.

For contractors in the construction industry, The Hartford provides the cheapest general liability insurance. LLCs pay an average of $922 per month, while sole proprietors pay only $90 monthly. The Hartford also has a high complaint score and AM Best rating, indicating that customers are satisfied and the company can meet its financial obligations.

In most states, The Hartford offers the cheapest general liability insurance for contractors. However, your business location plays a critical role in the cost of your policy. For instance, businesses in areas with higher risk factors, such as flood or earthquake-prone zones, may pay higher insurance premiums. This is because businesses are more likely to make claims in such regions, which is a higher risk for the insurer.

To find the cheapest general liability insurance for contractors by state, MoneyGeek collected quotes from Zip codes with the highest population density in each state.

The cheapest contractor insurance for sole proprietors is from Hiscox, with rates averaging $1,134 per year or $85 per month. Aside from being affordable, Hiscox also offers a good balance between financial stability, customer satisfaction and the time to get a quote.

The Hartford offers the cheapest general liability insurance for contractors with an LLC, charging an average of $11,059 per year or $922 per month. Note that this is for a general contractor LLC with 20 employees, which means your costs may vary if you have more or fewer employees.

If you're looking for a fast insurance quote, Thimble's rapid response time makes it an excellent choice over other providers. Taking an average of 34 seconds to get a quote online, contractors can quickly determine a ballpark figure for their insurance. However, it's important to note that while Thimble offers quick insurance quotes, its rates may not be the most affordable compared to other providers.

How much general liability insurance costs for contractors can depend on several things, including business location, previous claims history, coverage amount and number of employees.

Businesses with more employees tend to have higher insurance premiums due to the potential for accidents and injury claims. Your claims history can also impact your insurance costs, as frequent or severe claims can lead to higher rates.

There are a few things you can do to find a policy with the cheapest premiums and coverage that meets your needs.

Determine the appropriate level of general liability coverage you require to avoid overpaying for unnecessary coverage or being underinsured. Skimping on coverage to save on insurance costs can leave your business vulnerable to financial losses in the event of a claim.

The amount of coverage you need will depend on factors such as the services you provide or how many employees you have. By assessing your business's unique needs, you can ensure they have adequate coverage without overpaying for unnecessary protection.

Ensuring the work site is safe is a key way to reduce the likelihood of accidents. The costs of workplace accidents and injuries are numerous: medical bills or property damage for the injured employee or third party, increased insurance premiums and potential business losses.

By keeping your work site safe and minimizing accidents and injuries, you can keep your claims count low and your reputation clean—and keep your premiums lower.

Bundling insurance policies can be an effective way to save money on premiums. Many insurers offer bundling options that let you benefit from discounts. For instance, you can get general liability, commercial auto and business income insurance in one bundle, depending on the provider.

However, while bundling policies can save money, ensuring that your coverage is sufficient to protect the business from potential losses is essential. You also want to avoid getting unnecessary coverage.

Getting cheap general liability insurance is vital as a contractor to protect your assets and bottom line. Our answers to frequently asked questions provide more information about cheap general contractor insurance.