Construction business insurance costs vary widely across coverage types. MoneyGeek's analysis shows monthly premiums range from $77 for professional liability coverage to $228 for a business owner's policy.
How Much Does Construction Business Insurance Cost?
Construction business insurance rates begin at $77 per month, but your specific business details will determine your actual cost.
Discover cheap construction business insurance below.
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Updated: August 19, 2025
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Key Takeaways
Construction business insurance costs range from $77 to $228 monthly, with general liability and workers' compensation being the most common coverage types.
Your construction insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable construction business insurance costs.
Average Construction Business Insurance Cost Overall
| BOP | $228 |
| General Liability | $177 |
| Professional Liability (E&O) | $77 |
| Workers' Comp | $181 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Construction Business Insurance Cost for General Liability Coverage by State
Your construction business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $153 monthly (versus the $177 national average), providing clear cost data for business planning.
| Alabama | $172 |
| Alaska | $184 |
| Arizona | $165 |
| Arkansas | $169 |
| California | $196 |
| Colorado | $175 |
| Connecticut | $191 |
| Delaware | $189 |
| Florida | $191 |
| Georgia | $179 |
| Hawaii | $213 |
| Idaho | $167 |
| Illinois | $193 |
| Indiana | $172 |
| Iowa | $168 |
| Kansas | $171 |
| Kentucky | $162 |
| Louisiana | $217 |
| Maine | $153 |
| Maryland | $168 |
| Massachusetts | $185 |
| Michigan | $167 |
| Minnesota | $165 |
| Mississippi | $177 |
| Missouri | $174 |
| Montana | $175 |
| Nebraska | $167 |
| Nevada | $197 |
| New Hampshire | $175 |
| New Jersey | $200 |
| New Mexico | $177 |
| New York | $205 |
| North Carolina | $153 |
| North Dakota | $153 |
| Ohio | $164 |
| Oklahoma | $176 |
| Oregon | $164 |
| Pennsylvania | $203 |
| Rhode Island | $194 |
| South Carolina | $182 |
| South Dakota | $165 |
| Tennessee | $172 |
| Texas | $178 |
| Utah | $166 |
| Vermont | $169 |
| Virginia | $160 |
| Washington | $200 |
| West Virginia | $185 |
| Wisconsin | $173 |
| Wyoming | $163 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Construction Business Insurance Cost for Workers’ Compensation Coverage by State
Your construction business's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $157 monthly and New York the highest at $210 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $178 |
| Alaska | $165 |
| Arizona | $172 |
| Arkansas | $173 |
| California | $200 |
| Colorado | $178 |
| Connecticut | $195 |
| Delaware | $193 |
| Florida | $197 |
| Georgia | $184 |
| Hawaii | $190 |
| Idaho | $170 |
| Illinois | $198 |
| Indiana | $175 |
| Iowa | $172 |
| Kansas | $175 |
| Kentucky | $169 |
| Louisiana | $208 |
| Maine | $159 |
| Maryland | $173 |
| Massachusetts | $189 |
| Michigan | $171 |
| Minnesota | $170 |
| Mississippi | $183 |
| Missouri | $179 |
| Montana | $181 |
| Nebraska | $172 |
| Nevada | $208 |
| New Hampshire | $180 |
| New Jersey | $203 |
| New Mexico | $182 |
| New York | $210 |
| North Carolina | $157 |
| Oklahoma | $171 |
| Oregon | $169 |
| Pennsylvania | $208 |
| Rhode Island | $198 |
| South Carolina | $187 |
| South Dakota | $169 |
| Tennessee | $176 |
| Texas | $181 |
| Utah | $174 |
| Vermont | $173 |
| Virginia | $164 |
| West Virginia | $190 |
| Wisconsin | $177 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Construction Business Insurance Cost for Professional Liability Coverage by State
Like other insurance types, your cost for professional liability insurance varies by state. The national average for professional liability is $77 monthly, with North Carolina offering the lowest rates at $67 for E&O insurance, while New York charges the highest at $90 monthly.
| Alabama | $75 |
| Alaska | $69 |
| Arizona | $73 |
| Arkansas | $73 |
| California | $86 |
| Colorado | $75 |
| Connecticut | $83 |
| Delaware | $83 |
| Florida | $83 |
| Georgia | $78 |
| Hawaii | $78 |
| Idaho | $73 |
| Illinois | $84 |
| Indiana | $74 |
| Iowa | $74 |
| Kansas | $75 |
| Kentucky | $71 |
| Louisiana | $86 |
| Maine | $68 |
| Maryland | $72 |
| Massachusetts | $80 |
| Michigan | $72 |
| Minnesota | $71 |
| Mississippi | $78 |
| Missouri | $76 |
| Montana | $76 |
| Nebraska | $73 |
| Nevada | $86 |
| New Hampshire | $77 |
| New Jersey | $88 |
| New Mexico | $78 |
| New York | $90 |
| North Carolina | $67 |
| North Dakota | $67 |
| Ohio | $71 |
| Oklahoma | $72 |
| Oregon | $72 |
| Pennsylvania | $89 |
| Rhode Island | $85 |
| South Carolina | $79 |
| South Dakota | $71 |
| Tennessee | $74 |
| Texas | $77 |
| Utah | $73 |
| Vermont | $74 |
| Virginia | $70 |
| Washington | $87 |
| West Virginia | $81 |
| Wisconsin | $75 |
| Wyoming | $71 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Construction Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show major differences in construction business insurance costs by state. Monthly premiums range from $195 in North Carolina to $273 in Louisiana.
| Alabama | $225 |
| Alaska | $253 |
| Arizona | $211 |
| Arkansas | $219 |
| California | $259 |
| Colorado | $226 |
| Connecticut | $247 |
| Delaware | $247 |
| Florida | $244 |
| Georgia | $234 |
| Hawaii | $253 |
| Idaho | $215 |
| Illinois | $249 |
| Indiana | $220 |
| Iowa | $214 |
| Kansas | $216 |
| Kentucky | $207 |
| Louisiana | $273 |
| Maine | $196 |
| Maryland | $217 |
| Massachusetts | $239 |
| Michigan | $213 |
| Minnesota | $215 |
| Mississippi | $227 |
| Missouri | $227 |
| Montana | $229 |
| Nebraska | $218 |
| Nevada | $253 |
| New Hampshire | $224 |
| New Jersey | $257 |
| New Mexico | $233 |
| New York | $266 |
| North Carolina | $195 |
| North Dakota | $199 |
| Ohio | $213 |
| Oklahoma | $221 |
| Oregon | $210 |
| Pennsylvania | $263 |
| Rhode Island | $253 |
| South Carolina | $235 |
| South Dakota | $212 |
| Tennessee | $221 |
| Texas | $229 |
| Utah | $210 |
| Vermont | $217 |
| Virginia | $207 |
| Washington | $256 |
| West Virginia | $236 |
| Wisconsin | $219 |
| Wyoming | $210 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Construction Business Insurance Cost
Construction business insurance costs vary based on several factors that insurance companies review to set premiums. Understanding these elements helps with budget planning. We break down these cost factors below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Construction sites in areas with severe weather face higher risks, while varying state regulations and regional construction activity levels create substantial premium differences.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single workplace injury or construction site accident can substantially increase your general liability rates at renewal.
Types of projects undertaken
Commercial construction projects typically carry higher liability risks than residential work. High-rise construction involves greater fall risks and potential damage claims, while renovation projects bring unique challenges like asbestos exposure and structural damage concerns.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Different construction services carry varying risk levels. Roofing and structural work involve higher liability exposure than interior finishing, while specialized services like electrical or plumbing work require additional coverage considerations.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small renovation contractor with $200,000 in annual revenue pays less than a commercial builder generating $2 million yearly.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
Construction equipment like cranes, excavators, and specialized tools require comprehensive coverage. A company with $500,000 in heavy machinery needs higher coverage limits than one primarily using hand tools, resulting in higher premiums.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Construction Business Insurance
Smart shopping and better business practices can lower your construction insurance costs, and these proven strategies will help reduce your premiums both now and as your safety record improves.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your construction company needs prevents paying for unnecessary coverage. General liability protects against jobsite accidents and property damage, while workers compensation covers employee injuries. Commercial auto insurance is essential for work vehicles, and builders risk insurance protects ongoing projects.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who can compare multiple carriers for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability, commercial property, and commercial auto insurance with one carrier typically costs less than separate policies from different providers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out of pocket for small claims, but your regular payments will be lower.
- 5
Pay annually instead of monthly
Most insurance companies charge extra fees for monthly payment processing. Paying your full premium annually eliminates these fees and often qualifies you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your construction business grows. Review your policies yearly to ensure coverage matches your current operations. Remove unnecessary coverage and adjust limits based on your business size and projects.
Insurance for Construction Business Cost: Bottom Line
Construction business insurance costs range from $77 to $228 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies and choosing higher deductibles helps you find more affordable rates.
Construction Business Insurance Cost: FAQ
Our research team answers the most common questions about construction business insurance costs to help you make informed coverage decisions.
What is the cheapest type of construction business insurance?
Professional liability insurance costs $77 monthly for construction businesses. General liability coverage is essential since it safeguards against customer injuries and property damage claims.
How much can I save by bundling my construction business insurance policies?
Bundling business insurance policies through a BOP offers the best value. Insurance carriers provide significant discounts when combining essential coverages into one package.
What factors make my construction business insurance more expensive?
Location, claims history and number of employees can make business insurance for construction companies expensive.
General Liability insurance costs the least for construction businesses at around $177 per month. This basic coverage protects against common risks like customer injuries and property damage.
Should I choose a $500 or $2,500 deductible for my construction business insurance?
Higher deductibles mean lower monthly premiums but require more out-of-pocket costs when filing claims. Base your choice on available cash reserves and claim frequency expectations.
How much does workers' compensation cost for construction businesses by state?
Monthly workers' compensation costs for construction businesses range from $157 in North Carolina to $210 in New York, with rates varying based on state regulations and risk factors.
Is business owner's policy (BOP) worth the extra cost for construction companies?
A BOP insurance costs around $228 monthly for construction companies and bundles multiple coverages into one policy. This comprehensive package typically delivers more value than purchasing individual policies separately.
How often should I shop around for construction business insurance quotes?
You should review your construction insurance annually during renewal. Compare at least three insurers to find better rates, particularly if your business has grown or changed services.
How We Determined Construction Business Insurance Costs
We collected construction business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small construction businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the construction industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.