The Hartford earned our top spot for the best small business insurer for contractor companies due to its excellent coverage and stability. However, we recommend comparing quotes from our other top picks, including biBerk, Simply Business and NEXT.
Best Contractor Business Insurance
Updated: July 3, 2025
Advertising & Editorial Disclosure
Key Takeaways
The Hartford is the best business insurance company for contractor firms because it offers the greatest balance of customer service and coverage.
The cheapest overall commercial insurance provider for contractor businesses is biBerk, with low monthly rates for various coverage types.
To shop for business insurance for your contractor business, assess the risks in your industry, consult agents and other similar organizations and compare multiple options.
Best Business Insurance for Contractor Companies
| The Hartford | 95 | 97 | 91 |
| biBERK | 94 | 98 | 91 |
| Simply Business | 90 | 90 | 83 |
| NEXT Insurance | 89 | 82 | 94 |
| Coverdash | 88 | 86 | 83 |
| Thimble | 87 | 90 | 81 |
| Nationwide | 86 | 80 | 91 |
| Chubb | 85 | 80 | 87 |
| Progressive Commercial | 85 | 85 | 81 |
| Hiscox | 83 | 80 | 87 |
*All scores were based on a contractor business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. The Hartford
pros
Lowest professional liability rates
Excellent financial strength (A+ AM Best)
High customer satisfaction score
cons
Higher BOP cost than biBerk
COMPANY HIGHLIGHTS
The Hartford leads the pack for contractor insurance, offering the most affordable professional liability coverage and excellent support across policy types. Known for its dependable claims service and an A+ from AM Best, it’s a great choice for general contractors, electricians,and skilled trades. The Hartford combines strong coverage with reliable service for businesses needing comprehensive protection.
2. biBerk
pros
Cheapest BOP and liability rates
Backed by Berkshire Hathaway
Streamlined low-cost policies
cons
Fewer policy options
COMPANY HIGHLIGHTS
biBerk stands out for affordability, offering the lowest prices for both general liability and BOP coverage for contractors. With the backing of Berkshire Hathaway, it combines budget pricing with long-term financial stability. It’s especially well-suited for small to mid-sized contractors who need essential protection without overpaying. Policy customization is limited, but biBerk delivers great value for core coverage.
3. Simply Business
pros
Flexible coverage from multiple carriers
Competitive pricing on liability and BOP
Easy to compare policies
cons
Service not as strong as top competitors
COMPANY HIGHLIGHTS
Simply Business gives contractors a marketplace to compare coverage from multiple carriers, helping find the right fit for their business. With strong pricing on BOP and general liability policies, it's a smart option for contractors who want to shop around. While service may not match that of dedicated insurers, its flexibility and access to reputable providers make it a solid pick for cost-conscious professionals.
Cheapest Business Insurance for Contractor Firms
Based on our study of business insurance pricing, biBerk offers the cheapest overall commercial insurance for contractor companies across most policy types. However, this applies only to contractor companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Contractor Companies
With an average monthly rate of $204, biBerk offers the lowest-cost general liability insurance for contractor companies. Even so, consider getting quotes from the next-most-affordable insurers: The Hartford and Thimble or Simply Business.
| biBERK | $204 | $2,451 |
| The Hartford | $224 | $2,684 |
| Simply Business | $235 | $2,818 |
| Thimble | $235 | $2,815 |
| Coverdash | $259 | $3,110 |
| Progressive Commercial | $269 | $3,228 |
| NEXT Insurance | $286 | $3,431 |
| Chubb | $290 | $3,478 |
| Hiscox | $294 | $3,533 |
| Nationwide | $300 | $3,595 |
Cheapest Workers' Comp Insurance for Contractor Companies
For contractor businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $71 per month or $851 yearly.
However, you may find more affordable rates with Progressive Commercial, Simply Business, Hiscox and The Hartford.
| Thimble | $71 | $851 |
| Progressive Commercial | $76 | $917 |
| Hiscox | $79 | $950 |
| Simply Business | $79 | $948 |
| The Hartford | $80 | $964 |
| Coverdash | $81 | $973 |
| biBERK | $83 | $1,001 |
| NEXT Insurance | $83 | $991 |
| Nationwide | $89 | $1,068 |
| Chubb | $95 | $1,145 |
Cheapest Professional Liability Insurance for Contractor Companies
The Hartford offers the most affordable professional liability insurance options for contractor companies, with low average monthly rates of $107. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Hiscox.
| The Hartford | $107 | $1,284 |
| NEXT Insurance | $112 | $1,340 |
| Progressive Commercial | $114 | $1,372 |
| Hiscox | $119 | $1,422 |
| Simply Business | $119 | $1,433 |
| Coverdash | $120 | $1,445 |
| Thimble | $120 | $1,436 |
| biBERK | $124 | $1,482 |
| Nationwide | $129 | $1,552 |
| Chubb | $139 | $1,672 |
Cheapest BOP Insurance for Contractor Companies
For contractors seeking bundled general liability and property insurance, biBerk offers the most affordable business owner's policy (BOP) coverage with an average yearly cost of $3,174. That’s a savings of roughly $251 annually compared to The Hartford, the second most affordable option.
| biBERK | $265 | $3,174 |
| The Hartford | $285 | $3,425 |
| Simply Business | $353 | $4,234 |
| Thimble | $364 | $4,363 |
| Coverdash | $376 | $4,514 |
| Progressive Commercial | $403 | $4,836 |
| NEXT Insurance | $416 | $4,996 |
| Chubb | $433 | $5,198 |
| Hiscox | $445 | $5,337 |
| Nationwide | $449 | $5,388 |
What Type of Coverage Do You Need for a Contractor Business?
By law, most businesses need workers' comp insurance if they have employees and commercial auto insurance for any business vehicles. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED BUSINESS COVERAGE FOR CONTRACTORS
General liability insurance is strongly recommended for contractor companies because it covers common risks like bodily injury, property damage, and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. It’s particularly helpful for contractor businesses with commercial contracts or high-risk jobs, like technical, legal, or customized services.
Coverage Recommendations by Contractor Company Type
Below is a list that categorizes different contractor services by their risk exposure, from highest to lowest. Understanding these risks helps in tailoring the right insurance coverage, with higher-risk businesses needing more comprehensive protection.
Contractor Type | Coverage Types Recommendation | Most Common Insurance Claims | Most Common Reasons For Litigation |
|---|---|---|---|
General Contractor (Residential/Commercial) | General Liability, Workers' Comp, BOP, Commercial Auto, Umbrella Policy | Property damage, third-party injury, employee injury, sub damage | Breach of contract, job site injury claims, construction defect lawsuits |
Roofing Contractor | General Liability (high limits), Workers' Comp, Inland Marine, BOP, Umbrella Policy | Falls from height, weather damage, property damage | Injury liability, poor workmanship claims, roof failure lawsuits |
Electrical Contractor | General Liability, Workers' Comp, BOP, Professional Liability, Inland Marine | Faulty wiring, fire, employee injuries, equipment damage | Fire/property damage claims, negligence lawsuits, inspection failure claims |
Plumbing Contractor | General Liability, Workers' Comp, BOP, Inland Marine, Pollution Liability | Water damage, pipe failure, tool theft, jobsite injuries | Flood damage claims, defective work disputes, environmental damage lawsuits |
Handyman/Small Renovation Contractor | General Liability, BOP (optional), Tools & Equipment, Workers’ Comp (if needed) | Property damage, minor injury, stolen tools | Claims from poor workmanship, damage disputes, uninsured injury claims |
How to Get the Best Cheap Business Insurance for Your Contractor Company
Here's a step-by-step method for finding the best and cheapest business insurance for your contractor company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
To ensure you get the best deal, research average costs for your business profile and determine which providers offer the cheapest rates overall. This will give you a measuring stick for how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
To further narrow your list, research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, to align with your coverage needs and future ones, research coverage options to ensure you're covered for the right items.
- 4
Compare multiple quotes through different means
The tried-and-true method for finding the best deal is to compare multiple quotes for apples-to-apples coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Contractor Business's Liability Risk
Reducing liability risk is essential for contractor businesses to keep insurance costs manageable. We've organized risk mitigation strategies tailored to different business types and risk levels to help you navigate this process effectively.
Risk Level | Included Types | Risk Mitigation Tactics |
|---|---|---|
Highest | Roofing, electrical, general contractors on commercial projects | Follow OSHA safety protocols. Require subcontractor insurance. Use signed contracts with scope and liability terms. Carry umbrella coverage for high-risk exposures. |
Moderately High | Plumbing and HVAC contractors, residential general contractors | Use licensed professionals. Test all systems post-installation. Maintain tools/equipment coverage. Document repairs and sign-offs. |
Moderate | Small renovation and handyman contractors | Clearly define job scope in contracts. Use photos to document before-and-after. Secure tools onsite or in vehicles. Maintain basic liability and tools insurance. |
Moderately Low | Solo contractors doing non-structural work (e.g., painting, flooring) | Use standard agreements. Avoid jobs outside training. Carry basic general liability. Get bonded for trust-building. |
Lowest | Consultants or estimators not doing physical labor | Maintain professional liability and cyber coverage. Avoid promising outcomes outside your scope. Use disclaimers in contracts and reports. |
Best Insurance for Contractor Business: Bottom Line
The Hartford is the best insurer for contractor business insurance, while biBerk offers the cheapest option overall. We also recommend getting quotes from Simply Business and NEXT. For the best deal, talk to agents, research providers and pricing and compare multiple quotes side by side.
Contractor Business Insurance: FAQ
The following section answers frequently asked questions about contractor business insurance.
Who offers the best contractor business insurance overall?
The Hartford provides the best business insurance for contractor companies, boasting a superior customer service rating and a MoneyGeek score of 95 out of 100. biBerk is a close second with competitive pricing and a score of 94.
Who has the cheapest business insurance for contractor companies?
Here are the cheapest business insurance companies for contractors by coverage type:
- Cheapest general liability insurance: biBerk at $204 per month
- Cheapest workers' comp insurance: Thimble at $71 per month
- Cheapest professional liability insurance: The Hartford at $107 per month
- Cheapest BOP insurance: biBerk at $265 per month
What business insurance is required for contractor organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for contractor businesses, with requirements varying by state. While not legally mandated, general liability insurance and surety bonds are effectively required by most commercial clients and property leases.
For affordable coverage options, consider biBerk or The Hartford, known for their competitive rates and strong customer service. Many clients also choose Simply Business or Thimble for their reputable offerings in the contractor industry.
When shopping for these plans, factor in cost as well. For instance, biBerk, being highly rated in affordability, is an advantageous option alongside its high customer service scores to meet your business needs.
How much does contractor business insurance cost?
Business insurance costs for contractors depend on trade type, project scale, and team size. Below are the average monthly costs for commonly needed coverage types:
- General liability: $260 per month
- Workers comp: $82 per month
- Professional liability: $120 per month
- BOP insurance: $379 per month
How We Chose the Best Contractor Business Insurance
We selected the best business insurer for contractor companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
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.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.