Get insurance quotes for general contractors
Save money by comparing insurance quotes from multiple carriers.
Choose from the nation's best insurance providers
How much does general contractor insurance cost?
General contractors can save money on business insurance by comparing quotes from different providers with Insureon. Your premium depends on the type of policy, coverage limits, deductibles, and factors such as your business's location and number of employees.
Top business insurance policies for general contractors and their cost
Here are the top policies purchased by general contractors and their average monthly cost:
- General liability insurance: $162 per month
- Business owner's policy (BOP): $125 per month
- Workers' compensation insurance: $196 per month
- Contractor's tools and equipment insurance: $42 per month
- Commercial auto insurance: $287 per month
- Professional liability insurance: $67 per month
- Commercial umbrella insurance: $140 per month
- Builder's risk insurance: $136 per month
- Surety bonds: $10 per month
Our figures are sourced from the median cost of policies for general contractors who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
General liability insurance
General contractors pay an average of $162 per month, or $1,950 annually, for general liability insurance.
General liability insurance provides financial protection against common lawsuits from customers. It can cover costs if someone sues your business for an injury, property damage, or copyright infringement.
This is the average policy for general contractors who buy from Insureon:
Premium: $162 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated and how to save money on your general liability policy.
Business owner's policy
General contractors and other construction businesses pay an average of $125 per month, or $1,503 annually, for a business owner's policy.
A business owner's policy bundles two important types of coverage at a discount. It includes general liability insurance to protect against common lawsuits, and commercial property insurance to cover stolen or damaged business property.
This is the average business owner's policy for general contractors who buy from Insureon:
Premium: $125 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
If you're wondering why a BOP costs less on average than general liability insurance, that's likely because only small, low-risk businesses qualify for a BOP.
The cost of a business owner's policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and the value of your business property.
Workers’ compensation insurance
General contractors pay an average of $196 per month, or $2,348 annually, for workers’ compensation insurance.
Workers' comp helps pay for medical costs from work-related injuries and illnesses. Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.
There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.
The cost of workers' compensation insurance depends on factors such as the number of employees you have and the type of work they do. Learn more about how workers' comp costs are calculated and how to save money on your policy.
Contractor’s tools and equipment insurance
Construction contractors, including general contractors, pay an average of $42 per month for contractor’s tools and equipment insurance, or $505 annually.
Also called inland marine insurance, this policy helps cover the repair or replacement of lost, stolen, or damaged tools and equipment. It covers property in transit, at jobsites, and stored off-site.
The cost of contractor's tools and equipment coverage depends on the value of your tools and equipment and the type of work you do. Items valued at over $2,500 may need to be scheduled separately on the policy.
Get free insurance quotes for general contractors from top U.S. providers
Commercial auto insurance
General contractors pay an average of $287 per month, or $3,444 annually, for commercial auto insurance.
Most states require this coverage for vehicles owned by a business. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance instead.
A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical costs, and legal expenses.
The cost of commercial auto insurance depends on the coverage options you choose, the value of the vehicle, and the driving records of anyone permitted to drive it. Learn how insurance providers calculate your premium and how to save money on your commercial auto policy.
Professional liability insurance
Construction businesses, including general contractors, pay an average of $67 per month, or $808 annually, for professional liability insurance. General contractors can often bundle this policy with general liability insurance for a discount, at a combined average of $150 monthly.
Professional liability insurance, also known as errors and omissions insurance (E&O), protects general contractors from legal fees related to accusations of negligence or substandard work. It would help pay for attorney's fees and other legal costs if a client sues due to a budget overrun, unexpected delay, or breach of contract.
This is the average insurance coverage for construction professionals who buy from Insureon:
Premium: $67 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000
The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and your profession. Find out how insurers set professional liability premiums and how to save money on your policy.
Commercial umbrella insurance
General contractors pay an average of $140 per month, or $1,680 annually, for commercial umbrella insurance. You can buy this policy to boost the limits of your underlying general liability, commercial auto, or employer's liability insurance.
When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit, up to the additional limit of your umbrella policy.
The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.
Builder's risk insurance
Contractors in the construction industry, including general contractors, pay an average of $136 per month, or $1,635 annually, for builder's risk insurance. This policy is sometimes called course of construction insurance.
Builder's risk insurance provides coverage for structures under construction. It will help pay for fires, vandalism, and other types of damage.
The cost of builder's risk insurance depends on the value of the structure, including materials and labor.
Surety bonds
General contractors pay an average of $10 per month for surety bonds, or $126 annually. A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement.
The cost of a surety bond depends primarily on the size of the bond.
How much does general contractor insurance cost in my state?
Some states have higher costs for business insurance than others. Here are the average monthly costs for general contractors in our top states:
| General liability | Workers' comp | Commercial auto | |
|---|---|---|---|
California | $144 | $590 | $270 |
Colorado | $100 | $357 | $130 |
Florida | $104 | $532 | $351 |
Illinois | $113 | $446 | $110 |
Michigan | $84 | $293 | $238 |
New Jersey | $100 | $370 | $237 |
New York | $115 | $329 | $267 |
Pennsylvania | $57 | $171 | $259 |
Texas | $152 | $306 | $254 |
Washington | $115 | - | $163 |
Key factors influencing policy costs
Your insurance provider calculates your general contractor insurance premiums based on several factors, including:
- Services and associated risks: High-risk services, such as electrical, roofing, or steel work, will have more costly premiums than low-risk services, like welding or carpentry. Whether contractors perform commercial or residential work can also impact the bottom line of an insurance policy.
- Business size: The more employees or subcontractors that are on staff, the more opportunities there are for accidents to happen or for potential damage to occur to someone else's property.
- Annual revenue and payroll: The more your company makes in a year and the more you pay your employees or subcontractors, the higher your premium will cost. That’s because increased revenue and payroll mean a greater exposure to potential risks on the job.
- Business equipment and property: Higher-value items are more likely to result in more expensive premiums than lower-cost items. Items that are used more frequently also tend to cost more to cover than infrequently used items.
- Years of experience: Contractors with more experience working in the field will tend to pay lower premiums than newer contractors due to lower associated risks.
- Location: Contractor businesses that are located in areas prone to natural disasters, increased foot traffic, or high crime rates may have to pay more costly premiums than those located in areas where these factors are less present.
- Coverage limits and deductibles: Higher coverage limits and lower deductibles will typically increase premium costs, while lower limits and a higher deductible can help keep insurance rates low.
- Claims history: A general contractor with a lengthy list of previous insurance claims will likely pay more for insurance than a company with no claims history. For workers' comp specifically, this is quantified through your experience modification rating (EMR), which insurers use to adjust your premium based on your claims history relative to similar contractors.
How do I get general contractor insurance?
Insureon can help you find affordable general contractor insurance in three easy steps:
- Fill out a free online application with details about your business.
- Compare custom quotes from top-rated U.S. providers.
- Select a policy and pay the premium to begin coverage.
A licensed agent will help make sure your insurance matches your business risks, budget, and state requirements. Once you've bought a policy, you can download a certificate of insurance (COI) for proof of coverage. Most small businesses can get covered within 24 hours of applying for quotes.
What our customers are saying
Updated: July 31, 2026
The average costs on this page were derived from our data on small business owners in the general contracting field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
EXPLORE ON INSUREON
SHARE THIS ARTICLE
Want free expert advice right in your inbox?
By entering your email address and subscribing, you agree to our Terms of Use and Privacy Policy