Contractor business insurance averages $216 monthly, with costs ranging from $142 to $439 based on coverage types and location.
Get matched with cheap contractor business insurance below.
Updated: October 13, 2025
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Contractor business insurance costs between $1,706 and $5,269 annually, varying by your coverage needs, state and specific contracting field.
Your contractor insurance rates depend on where you work, past claims and how many employees you have.
Shop multiple business insurers, combine policies, raise deductibles and pay yearly to lower your contractor insurance costs .
We found average business insurance costs for Contractor companies for commonly needed coverage are as follows:
| BOP | $378 | $4,531 |
| General Liability | $256 | $3,067 |
| Professional Liability (E&O) | $63 | $759 |
| Workers' Comp | $166 | $1,990 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
Your contractor business insurance cost for general liability coverage varies by location. Maine contractors pay just $222 monthly compared to the $256 national average, while New York reaches $298 monthly.
| Alabama | $251 | $3,010 |
| Alaska | $225 | $2,699 |
| Arizona | $242 | $2,903 |
| Arkansas | $246 | $2,948 |
| California | $285 | $3,423 |
| Colorado | $254 | $3,047 |
| Connecticut | $278 | $3,340 |
| Delaware | $275 | $3,299 |
| Florida | $277 | $3,327 |
| Georgia | $260 | $3,122 |
| Hawaii | $263 | $3,157 |
| Idaho | $243 | $2,913 |
| Illinois | $281 | $3,374 |
| Indiana | $250 | $2,997 |
| Iowa | $244 | $2,926 |
| Kansas | $249 | $2,985 |
| Kentucky | $237 | $2,844 |
| Louisiana | $285 | $3,421 |
| Maine | $222 | $2,664 |
| Maryland | $244 | $2,932 |
| Massachusetts | $269 | $3,224 |
| Michigan | $243 | $2,910 |
| Minnesota | $240 | $2,882 |
| Mississippi | $257 | $3,088 |
| Missouri | $253 | $3,035 |
| Montana | $255 | $3,060 |
| Nebraska | $242 | $2,907 |
| Nevada | $290 | $3,474 |
| New Hampshire | $255 | $3,056 |
| New Jersey | $290 | $3,483 |
| New Mexico | $258 | $3,091 |
| New York | $298 | $3,577 |
| North Carolina | $222 | $2,664 |
| North Dakota | $223 | $2,672 |
| Ohio | $238 | $2,851 |
| Oklahoma | $237 | $2,841 |
| Oregon | $238 | $2,854 |
| Pennsylvania | $296 | $3,547 |
| Rhode Island | $281 | $3,377 |
| South Carolina | $264 | $3,165 |
| South Dakota | $239 | $2,873 |
| Tennessee | $250 | $2,997 |
| Texas | $258 | $3,100 |
| Utah | $243 | $2,915 |
| Vermont | $246 | $2,951 |
| Virginia | $233 | $2,798 |
| Washington | $291 | $3,495 |
| West Virginia | $269 | $3,224 |
| Wisconsin | $251 | $3,016 |
| Wyoming | $237 | $2,842 |
Note: We based these general liability rates on contractor businesses with two employees across different states. Your rates will vary based on your location and claims history.
The cost of workers' compensation insurance for contractor businesses differs across states. North Carolina has the most affordable rates at $142 monthly, while New York reaches $193 monthly. State regulations and regional claim histories affect these pricing variations between locations.
| Alabama | $163 |
| Alaska | $152 |
| Arizona | $156 |
| Arkansas | $157 |
| California | $185 |
| Colorado | $164 |
| Connecticut | $179 |
| Delaware | $179 |
| Florida | $177 |
| Georgia | $169 |
| Hawaii | $173 |
| Idaho | $157 |
| Illinois | $180 |
| Indiana | $162 |
| Iowa | $157 |
| Kansas | $160 |
| Kentucky | $155 |
| Louisiana | $188 |
| Maine | $144 |
| Maryland | $158 |
| Massachusetts | $173 |
| Michigan | $158 |
| Minnesota | $156 |
| Mississippi | $165 |
| Missouri | $165 |
| Montana | $165 |
| Nebraska | $157 |
| Nevada | $189 |
| New Hampshire | $165 |
| New Jersey | $188 |
| New Mexico | $167 |
| New York | $193 |
| North Carolina | $142 |
| Oklahoma | $154 |
| Oregon | $154 |
| Pennsylvania | $191 |
| Rhode Island | $183 |
| South Carolina | $170 |
| South Dakota | $155 |
| Tennessee | $160 |
| Texas | $167 |
| Utah | $159 |
| Vermont | $159 |
| Virginia | $152 |
| West Virginia | $174 |
| Wisconsin | $164 |
Note: We based these workers' comp rates on contractor businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.
Your professional liability cost will vary by state. This coverage averages $63 monthly nationwide. North Carolina offers the most affordable rates at $55 monthly, while Pennsylvania ranks highest at $74 monthly.
| Alabama | $63 |
| Alaska | $62 |
| Arizona | $60 |
| Arkansas | $59 |
| California | $71 |
| Colorado | $63 |
| Connecticut | $69 |
| Delaware | $67 |
| Florida | $69 |
| Georgia | $64 |
| Hawaii | $68 |
| Idaho | $60 |
| Illinois | $71 |
| Indiana | $62 |
| Iowa | $60 |
| Kansas | $61 |
| Kentucky | $58 |
| Louisiana | $71 |
| Maine | $55 |
| Maryland | $61 |
| Massachusetts | $67 |
| Michigan | $59 |
| Minnesota | $59 |
| Mississippi | $63 |
| Missouri | $63 |
| Montana | $63 |
| Nebraska | $60 |
| Nevada | $73 |
| New Hampshire | $63 |
| New Jersey | $71 |
| New Mexico | $64 |
| New York | $72 |
| North Carolina | $55 |
| North Dakota | $56 |
| Ohio | $58 |
| Oklahoma | $61 |
| Oregon | $59 |
| Pennsylvania | $74 |
| Rhode Island | $69 |
| South Carolina | $64 |
| South Dakota | $58 |
| Tennessee | $62 |
| Texas | $63 |
| Utah | $60 |
| Vermont | $61 |
| Virginia | $57 |
| Washington | $72 |
| West Virginia | $67 |
| Wisconsin | $61 |
| Wyoming | $58 |
Note: We based these professional liability rates on contractor businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Your contractor business insurance costs will vary depending on your state, with business owner's policy (BOP) coverage showing the biggest differences. BOP insurance cost ranges from $325 in Alaska to $439 in Pennsylvania for the same coverage level.
| Alabama | $372 |
| Alaska | $325 |
| Arizona | $356 |
| Arkansas | $360 |
| California | $427 |
| Colorado | $381 |
| Connecticut | $411 |
| Delaware | $400 |
| Florida | $408 |
| Georgia | $392 |
| Hawaii | $377 |
| Idaho | $366 |
| Illinois | $412 |
| Indiana | $367 |
| Iowa | $357 |
| Kansas | $364 |
| Kentucky | $349 |
| Louisiana | $414 |
| Maine | $326 |
| Maryland | $367 |
| Massachusetts | $398 |
| Michigan | $365 |
| Minnesota | $355 |
| Mississippi | $383 |
| Missouri | $370 |
| Montana | $380 |
| Nebraska | $355 |
| Nevada | $428 |
| New Hampshire | $383 |
| New Jersey | $427 |
| New Mexico | $384 |
| New York | $435 |
| North Carolina | $332 |
| North Dakota | $330 |
| Ohio | $349 |
| Oklahoma | $349 |
| Oregon | $350 |
| Pennsylvania | $439 |
| Rhode Island | $418 |
| South Carolina | $384 |
| South Dakota | $358 |
| Tennessee | $372 |
| Texas | $377 |
| Utah | $355 |
| Vermont | $362 |
| Virginia | $342 |
| Washington | $424 |
| West Virginia | $400 |
| Wisconsin | $369 |
| Wyoming | $358 |
Note: We based these BOP rates on contractor businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.
Contractor business insurance costs vary widely by provider, ranging from $173 to $250 monthly. These price differences reflect each insurer's specific market focus and risk appetite, which shift over time based on profitability and coverage expansion opportunities.
| Chubb | $250 | $3,005 |
| Coverdash | $215 | $2,585 |
| Hiscox | $238 | $2,862 |
| NEXT Insurance | $234 | $2,812 |
| Nationwide | $248 | $2,970 |
| Progressive Commercial | $226 | $2,707 |
| Simply Business | $201 | $2,408 |
| The Hartford | $176 | $2,114 |
| Thimble | $208 | $2,491 |
| biBERK | $173 | $2,081 |
For contractor business industry types, their insurance can cost anywhere between $54 to $836 monthly depending on the coverage type chosen. Below you can review costs by contractor sub-industry:
| Construction | $228 | $2,736 |
| Electrical | $166 | $1,989 |
| Excavation | $692 | $8,299 |
| Handyman | $363 | $4,353 |
| HVAC | $361 | $4,337 |
| Painting | $211 | $2,536 |
| Plumbing | $535 | $6,415 |
| Roofing | $567 | $6,806 |
| Welding | $244 | $2,928 |
Contractor business insurance costs vary based on different factors insurers review when they price your coverage.
Local labor costs, material prices and permitting all factor into your operating environment. Contractors in expensive coastal markets have higher overhead, including steeper insurance premiums than those working inland.
Job-site accidents and warranty claims create lasting marks on your insurance profile. Whether it's subcontractor injuries, property damage during renovation or defects discovered years later, past incidents continue affecting what you pay.
Kitchen remodels and room additions sit at one end of the complexity spectrum. Ground-up custom homes or whole-building renovations involve coordinating more trades, longer timelines and greater opportunity for things to go wrong.
General contractors often maintain lean crews and rely heavily on subcontractors. Your own employees still require workers' comp coverage, while managing multiple subs introduces different liability concerns that insurers evaluate separately.
Working with licensed, insured subs who carry proper coverage limits protects you from gaps. Contractors who verify certificates and maintain strong sub relationships have lower contingent liability exposure than those who hire whoever's available cheaply.
Annual receipts tell insurers how many projects you juggle simultaneously and your maximum exposure. Contractors billing $300,000 handling three jobs at once operate differently than those managing $1.5 million across a dozen active sites.
Project contracts specify minimum insurance requirements you must meet before starting work. Basic residential jobs might accept $1 million, while commercial clients routinely demand $2 million to $5 million in liability plus additional insured endorsements.
Trailers, tools and work trucks form the core assets most general contractors (GCs) need to protect. Contractors who own heavy equipment or maintain well-stocked tool collections require more comprehensive inland marine coverage than those renting as needed.
Reducing your contractor business insurance costs requires a mix of smart shopping and proactive business management. Our guide walks you through how to find the best cheap contractor insurance and maintain a strong risk profile for lasting savings.
General contractors need liability insurance for property damage and injuries at job sites, professional liability for project management errors and construction defects, and workers' compensation for crew injuries.
Add commercial auto for work vehicles, inland marine for tools and equipment traveling between sites, completed operations for issues arising after projects finish, and subcontractor default insurance to protect against subcontractor failures.
Contractor premiums depend on your trade specialization, project size and whether you primarily manage subcontractors or perform hands-on work. Contractor-focused insurers understand certificate of insurance requirements, additional insured endorsements and waiver of subrogation clauses that general contractors frequently need.
Combining general liability, professional liability, and commercial auto can save 19% to 28% compared to purchasing separately. Many insurers offer contractor packages, including tools, equipment and completed operations, at reduced bundle rates.
Higher deductibles of $2,500 to $10,000 can reduce premiums by 23% to 32%, which works for contractors handling larger projects with stronger cash reserves. Keep general liability deductibles moderate since property damage claims, worksite injuries or defective work can escalate to lawsuits.
Monthly installment plans add 6% to 11% in processing fees, which, on a $15,000 contractor policy, costs $900 to $1,650 extra annually. Paying upfront eliminates these charges and earns 5% to 9% discounts from contractor carriers.
Review your policy whenever you hire employees, take on larger projects requiring higher limits, or expand your scope of work into new trades. Safety training programs can qualify for premium discounts.
Contractor business insurance costs range from $142 to $439 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Contractor business owners commonly ask about insurance costs. We answered the most frequent questions below:
Professional liability coverage is the cheapest at $63 monthly, but it only covers errors and omissions. Most contractor businesses need general liability coverage ($256 monthly) since it protects against customer injuries and property damage lawsuits.
You'll pay more in these states. General liability in California runs $285 monthly (versus $256 national average), and BOP costs $427 monthly (versus $378 average). New York is similar at $298 and $435, respectively.
Bundling contractor business insurance policies delivers greater savings compared to purchasing individual policies. Insurance companies provide discounts when you package general liability, commercial auto coverage and commercial property insurance together with a single provider.
Higher premiums result from multiple risk factors: working in dangerous environments, maintaining poor safety records, using costly equipment, hiring large crews, performing hazardous tasks and operating in litigation-heavy states.
Higher deductibles reduce monthly premiums but increase out-of-pocket costs per claim. Your decision should depend on available cash flow and anticipated claim frequency.
Workers' compensation costs for contractor businesses vary by state, spanning from $142 monthly in North Carolina to $193 monthly in New York.
Yes, BOP insurance is worth it for contractors. BOP costs $378 monthly and bundles general liability, commercial property, and business interruption coverage. This package deal saves money compared to purchasing individual policies and offers valuable convenience for contractor businesses.
Shop at renewal time each year. Comparing quotes from multiple insurers can uncover savings, especially after business changes like adding employees or expanding services.
We collected contractor business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small contractor business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the contractor 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
