Updated: October 24, 2025

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Business Insurance for Contractors: Key Takeaways
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Contractors need several business insurance coverage types: general liability, workers comp, professional liability and tools and equipment insurance.

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The Hartford is the best business insurance company for contractors, with low rates and specialized coverage programs for the construction industry.

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biBerk provides the cheapest commercial insurance for contractors at $173 monthly for comprehensive coverage.

Best Business Insurance for Contractor Companies

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.

The Hartford4.74$176
biBERK4.70$173
Simply Business4.50$201
NEXT Insurance4.43$234
Thimble4.40$208
Coverdash4.40$215
Nationwide4.30$248
Chubb4.30$250
Progressive Commercial4.20$226
Hiscox4.10$238

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

Get Matched to the Best Contractor Insurer for You

Select your industry and state to get matched to the best provider for you and get customized quotes.

Industry
State
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE

To find the right coverage for your contractor business, check out the following resources:

The Hartford

1. The Hartford: Best Overall for Contractors

*on The Hartford
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  • Second most affordable rates for contractors

  • Dedicated contractor, construction and engineering customer service team

  • Tailored business insurance options specific to contractors

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  • Not available in Hawaii or Alaska

COMPANY HIGHLIGHTS

The Hartford has underwriting, claims and risk engineering teams focused on construction industry needs, backed by over 200 years of experience.

It offers contractor-specific coverages, such as its broad form endorsement and contractors' pollution liability, that most carriers don't provide.

biBerk

2. biBerk Cheapest Business Insurer for Contractors

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  • Cheapest rates for contractors overall

  • Automated online purchasing and contractor specific resources

  • Voted the most ethical business insurer

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  • Less affordable for professional liability and workers comp insurance

COMPANY HIGHLIGHTS

biBerk is the cheapest provider of BOP and general liability policies. Using the company's online platform to buy a policy, you can save up to 20%. 

This insurer also earned the BBB Torch award for ethics and offers additional risk management educational resources specific to contractors to help them avoid common industry issues.

Cheapest Business Insurance for Contractor Firms

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$173$2,081
The Hartford$176$2,114
Simply Business$201$2,408
Thimble$208$2,491
Coverdash$215$2,585
Progressive Commercial$226$2,707
NEXT Insurance$234$2,812
Hiscox$238$2,862
Nationwide$248$2,970
Chubb$250$3,005

Cheapest General Liability Insurance for Contractors

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.

biBERK$204$2,451
The Hartford$210$2,522
Simply Business$233$2,791
Thimble$235$2,815
Coverdash$259$3,110

Cheapest Workers' Comp Insurance for Contractors

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

NEXT Insurance$156$1,869
The Hartford$158$1,896
Thimble$159$1,909
Progressive Commercial$160$1,917
Simply Business$160$1,926

Cheapest Professional Liability Insurance for Contractors

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.

The Hartford$45$534
Hiscox$45$545
Nationwide$55$666
Chubb$85$1,018
NEXT Insurance$96$1,147

Cheapest BOP Insurance for Contractors

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.

biBERK$265$3,174
The Hartford$290$3,484
Simply Business$349$4,192
Thimble$364$4,364
Coverdash$376$4,514

What Does Contractor Business Insurance Cost?

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
BOP$378$4,531
General Liability$256$3,067
Professional Liability (E&O)$63$759
Workers Comp$166$1,990

What Types of Insurance Does a Contractor Need?

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.

Business Insurance Coverage Recommendations by Contractor Company Type

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 liability, workers’ compensation, commercial auto, equipment/tool coverage, professional liability, umbrella policy, surety bonds and cyber liability
  • General liability: should provide $1-2 million per occurrence with $2-3 million aggregate to cover third-party bodily injury and property damage claims.
  • Workers' compensation: must meet state-required minimums, typically ranging from $100,000 to $1 million depending on state requirements and employee count.
  • Commercial auto coverage: should include $1 million combined single limit to protect company vehicles and hired/non-owned auto exposure.
  • Equipment coverage: should equal the full replacement cost of all tools and equipment, typically ranging from $50,000 to $500,000.
  • Professional liability: requires $500,000 to $1 million per claim to cover design errors and omissions in construction planning.
  • Umbrella policy: should provide $5-10 million in excess coverage above primary policies for catastrophic claims.
  • Surety bonds: are often required by clients, typically 10-15% of project value with performance and payment bond requirements.
  • Cyber liability: should include $500,000 to $1 million coverage for data breaches and cyber attacks affecting business operations.

General liability, workers’ compensation, professional liability, commercial auto, tools & equipment, completed operations, product liability and cyber liability

  • General liability: requires $2 million per occurrence with $4 million aggregate due to high fire and shock risks in electrical work.
  • Workers' compensation: must meet state minimums with higher premiums due to elevated electrical injury risks and safety requirements.
  • Professional liability: should provide $1-2 million per claim to cover electrical design errors that could cause fires or system failures.
  • Commercial auto coverage: needs $1 million combined single limit with specialized tool coverage for service vehicles.
  • Tools & equipment coverage: should range from $50,000 to $200,000 depending on specialized electrical equipment and tool inventory value.
  • Completed operations: requires 10-year extended coverage to protect against electrical system failures long after project completion.
  • Product liability: should include $1-2 million coverage for electrical components and materials installed during projects.
  • Cyber liability: needs $500,000 to $1 million coverage for smart building systems and IoT electrical installations.
General liability, workers’ compensation, professional liability, commercial auto, pollution liability, tools & equipment, completed operations and product liability
  • General liability: should provide $1-2 million per occurrence with $2-4 million aggregate to cover water damage and flooding claims.
  • Workers' compensation: must meet state-required minimums with consideration for back injury risks from heavy pipe work.
  • Professional liability: requires $1 million per claim to cover plumbing design errors that could cause water damage or system failures.
  • Commercial auto: needs $1 million combined single limit with coverage for plumbing supplies and equipment transport.
  • Pollution liability: should include $1 million per claim coverage for sewage backups and contamination from plumbing work.
  • Tools & Equipment coverage: should range from $25,000 to $100,000 for specialized plumbing tools and diagnostic equipment.
  • Completed operations: requires 5-10 year coverage for potential leaks and water damage from completed plumbing installations.
  • Product liability: should provide $500,000 to $1 million coverage for pipes, fixtures, and plumbing materials installed.
General liability, workers’ compensation, professional liability, commercial auto, equipment coverage, pollution liability, product liability and refrigerant liability
  • General liability: should provide $1-2 million per occurrence with $2-3 million aggregate for property damage from HVAC installations.
  • Workers' compensation: must meet state minimums with higher rates due to risks from working with refrigerants and heavy equipment.
  • Professional liability: requires $500,000 to $1 million per claim for HVAC system design errors and efficiency failures.
  • Commercial auto: needs $1 million combined single limit with specialized coverage for HVAC equipment transport.
  • Equipment coverage: should range from $50,000 to $150,000 for HVAC tools, diagnostic equipment, and installation machinery.
  • Pollution liability: requires $500,000 to $1 million per claim coverage for refrigerant leaks and environmental contamination.
  • Product liability: should include $1 million coverage for HVAC units, ductwork, and system components installed.
  • Refrigerant liability: needs specialized coverage of $500,000 to $1 million for EPA violations and refrigerant handling incidents.

General liability, workers’ compensation, commercial auto, equipment coverage, completed operations, umbrella policy, product liability and weather delay coverage

  • General liability: requires $2 million per occurrence with $4 million aggregate due to high fall risks and property damage exposure.
  • Workers' compensation: must meet state minimums with significantly higher rates due to extreme fall hazards and injury frequency.
  • Commercial auto: needs $1 million combined single limit with coverage for material transport and specialized roofing vehicles.
  • Equipment coverage: should range from $75,000 to $250,000 for ladders, scaffolding, and specialized roofing equipment.
  • Completed operations: requires 10-year extended coverage to protect against roof leaks and weather-related failures.
  • Umbrella policy: should provide $5-10 million excess coverage due to high-value property damage potential from roofing work.
  • Product liability: needs $1-2 million coverage for roofing materials, shingles, and waterproofing products installed.
  • Weather delay coverage: should include business interruption protection for weather-related project delays and material damage.
Concrete/Masonry
General liability, workers’ compensation, commercial auto, equipment coverage, completed operations, environmental liability, product liability and professional liability
  • General liability: should provide $1-2 million per occurrence with $2-3 million aggregate for structural damage and construction defects.
  • Workers' compensation: must meet state minimums with consideration for heavy lifting injuries and silica dust exposure risks.
  • Commercial auto: needs $1 million combined single limit with coverage for concrete mixer trucks and heavy material transport.
  • Equipment coverage: should range from $100,000 to $500,000 for concrete mixers, masonry tools, and heavy construction equipment.
  • Completed operations: requires 5-10 years coverage for structural integrity issues and concrete/masonry settlement problems.
  • Environmental liability: needs $500,000 to $1 million per claim for concrete washout and silica dust contamination issues.
  • Product liability: should include $1 million coverage for concrete, mortar, and masonry materials used in construction.
  • Professional liability: requires $500,000 to $1 million coverage for structural design errors and engineering consultation services.

General liability, workers’ compensation, commercial auto, equipment coverage, environmental liability, pesticide/herbicide liability, tree care liability and completed operations

  • General liability: should provide $1-2 million per occurrence with $2-3 million aggregate for property damage from landscaping and tree work.
  • Workers' compensation: must meet state minimums with higher rates due to chainsaw injuries, falls from trees, and equipment accidents.
  • Commercial auto: needs $1 million combined single limit with coverage for landscaping trucks, trailers, and equipment transport.
  • Equipment coverage: should range from $25,000 to $100,000 for mowers, chainsaws, stump grinders, and landscaping tools.
  • Environmental liability: requires $500,000 to $1 million per claim for soil contamination and chemical runoff from landscaping activities.
  • Pesticide/herbicide liability: needs $500,000 to $1 million per claim coverage for chemical application errors and environmental damage.
  • Tree care liability: should include $1-2 million coverage specifically for tree removal, trimming, and arborist services with property damage potential.
    Completed operations: requires 2-5 years of coverage for plant warranty claims and landscaping installation failures.
 
General liability, workers’ compensation, commercial auto, equipment coverage, pollution liability, professional liability, product liability and lead paint liability
  • General liability: should provide $1 million per occurrence with $2 million aggregate for property damage from paint overspray and accidents.
  • Workers' compensation: must meet state minimums with consideration for fall risks from ladders and scaffolding work.
  • Commercial auto: needs $1 million combined single limit with coverage for paint supply transport and mobile equipment.
  • Equipment Coverage: should range from $15,000 to $50,000 for spray equipment, ladders, and painting tools.
  • Pollution liability: requires $500,000 per claim coverage for paint fume exposure and chemical contamination issues.
  • Professional liability: needs $500,000 per claim for color-matching errors and surface preparation mistakes.
  • Product liability: should include $500,000 to $1 million coverage for paint products and coating materials applied.
  • Lead paint liability: requires specialized coverage of $1-2 million for lead abatement work and RRP (Renovation, Repair, Painting) compliance.
Demolition/Debris Removal Contractors

General liability, workers’ compensation, commercial auto, equipment coverage, environmental liability, umbrella policy, asbestos/lead liability and explosive coverage

  • General liability: requires $2-5 million per occurrence with $4-10 million aggregate due to extreme property damage risks from demolition work.
  • Workers' compensation: must meet state minimums with significantly higher rates due to extreme hazards from structural collapse and heavy machinery
  • Commercial auto: needs $1-2 million combined single limit with coverage for heavy demolition equipment and debris hauling vehicles.
  • Equipment coverage: should range from $200,000 to $1 million or more for excavators, wrecking balls, and specialized demolition machinery.
  • Environmental liability: requires $2-5 million per claim for asbestos, lead, and hazardous material contamination from demolition activities.
  • Umbrella policy: should provide $10-25 million excess coverage due to catastrophic damage potential from demolition accidents.
  • Asbestos/lead liability: needs specialized coverage of $2-5 million for hazardous material abatement and contamination cleanup.
  • Explosive coverage: requires $5-10 million specialized coverage for controlled demolition using explosives and blasting operations.
Flooring Contractors
 

General liability, workers’ compensation, commercial auto, equipment coverage, professional liability, product liability, completed operations and installation coverage

 

  • General liability: should provide $1 million per occurrence with $2 million aggregate for property damage during flooring installation.
  • Workers' compensation: must meet state minimums with consideration for knee injuries and repetitive stress from flooring work.
  • Commercial auto: needs $1 million combined single limit with coverage for flooring material transport and installation equipment.
  • Equipment coverage: should range from $20,000 to $75,000 for sanders, nailers, and specialized flooring installation tools.
  • Professional liability: requires $500,000 per claim for flooring design errors and subfloor preparation mistakes.
  • Product liability: should include $500,000 to $1 million coverage for flooring materials, adhesives, and finishes installed.
  • Completed operations: requires 5-year coverage for flooring installation defects, warping, and finish failures.
  • Installation coverage: needs specialized protection for measurement errors and material waste from incorrect installations.
Drywall/Insulation Contractors

General liability, workers’ compensation, commercial auto, equipment coverage, professional liability, product liability, dust/debris coverage and completed operations

  • General liability: should provide $1 million per occurrence with $2 million aggregate for property damage from drywall dust and construction debris.
  • Workers' compensation: must meet state minimums with higher rates for repetitive lifting injuries and respiratory exposure risks.
  • Commercial auto: needs $1 million combined single limit with coverage for drywall and insulation material transport.
  • Equipment coverage: should range from $25,000 to $100,000 for lifts, sanders, spray equipment, and drywall tools.
  • Professional liability: requires $500,000 per claim for framing errors and insulation installation mistakes affecting energy efficiency.
  • Product liability: should include $500,000 coverage for drywall, insulation materials, and joint compounds used in construction.
  • Dust/debris coverage: needs specialized protection for cleanup costs and property damage from construction dust and debris.
  • Completed operations: requires 3-5 years of coverage for drywall cracking, insulation settling, and moisture-related issues.
Security/Alarm Contractors

General liability, workers’ compensation, commercial auto, equipment coverage, professional liability, product liability, completed operations and installation coverage

  • General liability: should provide $1-2 million per occurrence with $2-4 million aggregate for property damage during security system installation.
  • Workers' compensation: must meet state minimums with consideration for electrical work risks and property access injuries.
  • Professional liability: requires $1-2 million per claim for security system design errors and inadequate protection failures.
  • Commercial auto: needs $1 million combined single limit with coverage for service vehicles and security equipment transport.
  • Equipment coverage: should range from $50,000 to $200,000 for cameras, alarms, access control systems, and installation tools.
  • Technology E&O: requires $1-3 million coverage for software failures, system integration errors, and technology service mistakes.
  • Cyber liability: needs $1-5 million coverage for data breaches affecting customer security systems and monitoring services.
  • False alarm coverage: should include protection against municipal fines and emergency response fees from system malfunctions.
Solar Installation Contractors

General liability, workers’ compensation, professional liability, commercial auto, equipment coverage, product liability, performance guarantee and cyber liability

  • General liability: should provide $2 million per occurrence with $4 million aggregate for roof damage and electrical hazards from solar installations.
  • Workers' compensation: must meet state minimums with higher rates for roof work and electrical installation risks.
  • Professional liability: requires $1-3 million per claim for solar system design errors affecting energy production and efficiency.
  • Commercial auto: needs $1 million combined single limit with coverage for solar panel transport and installation equipment.
  • Equipment coverage: should range from $75,000 to $300,000 for solar panels, inverters, and specialized installation equipment.
  • Product liability: requires $2-5 million coverage for solar panels, inverters, mounting systems, and electrical components installed.
  • Performance guarantee: needs coverage for solar system underperformance and energy production shortfalls over 20-25 years.
  • Cyber liability: should include $500,000 to $2 million coverage for smart inverter and monitoring system cyber attacks.
Specialty/Custom Contractors

General liability, workers’ compensation, professional liability, commercial auto, errors & omissions, equipment coverage, artisan coverage and materials coverage

  • General liability: should provide $1-3 million per occurrence with $2-6 million aggregate, depending on specialty work complexity and client requirements.
  • Workers' compensation: must meet state minimums, with rates varying significantly based on specific specialty trade risks and skill requirements.
  • Professional liability: requires $1-2 million per claim for custom design errors and specialized construction technique failures.
  • Commercial auto: needs $1 million combined single limit with coverage for specialized tools and custom material transport.
  • Errors & omissions: should provide $500,000 to $2 million per claim for consultation services and custom project design mistakes.
  • Equipment coverage: must equal the full replacement value of specialized equipment, often ranging from $50,000 to $500,000 or more.
  • Artisan coverage: requires specialized 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.
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BUSINESS INSURANCE GUIDES TO COVERAGE NEEDS

To learn more about whether you need different types of business insurance coverage: 

How to Get the Best Cheap Business Insurance for Your Contractor Company

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

  1. 1
    Decide on Coverage Needs Before Buying

    Think about what could go wrong in your contractor business: tools breaking on site and injuries from contract work. Talk with other contractor business owners about their experiences and consult insurance agents for a second opinion.

  2. 2
    Research Costs

    Know what to expect before you start shopping. Look up typical business insurance costs for contractor companies your size and identify which companies offer competitive rates.

  3. 3
    Look Into Company Reputations and Coverage Options

    Check what customers say about each insurer, especially regarding contractor firms. Read reviews on Trustpilot and Google, or browse forums where business owners share claims experiences. While researching, review each company's coverage options to ensure they match your needs before comparing quotes.

  4. 4
    Compare Multiple Quotes Through Different Means

    Get business insurance quotes from at least three companies and use different methods to get the best deal. An independent agent might find you a price that doesn't appear on a company's website. Online comparison tools are quick, but calling insurers directly sometimes unlocks discounts.

  5. 5
    Reassess Annually

    Your contractor business will change over time, affecting your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal. Regular reviews help you catch new discounts and adjust coverage as your business grows.

Best Insurance for Contractor Business: Bottom Line

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.

Contractor Insurance: FAQ

We answer common questions about contractor business insurance:

Who offers the best contractor business insurance overall?

Who has the cheapest business insurance for contractor firms?

What business insurance is required for contractor organizations?

How much does contractor business insurance cost?

What kind of insurance should a contractor have?

How We Chose the Best 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

About Mark Fitzpatrick

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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.

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