How much does renovation and remodeling contractor insurance cost?

Renovation businesses and contractors pay an average of $94 per month, or $1,124 annually, for general liability insurance, sometimes called public liability insurance. Some home remodeling businesses need proof of insurance for this policy to sign a commercial lease or a client contract.

A general liability policy can pay for medical expenses from third-party injuries, such as a homeowner tripping over debris from a wall removal. It covers costs if someone sues your business over a bodily injury, property damage, or advertising injury.

This is the average policy for contractors who buy from Insureon:

Premium: $94 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The cost of a general liability insurance policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic you have, 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.

Renovation contractors pay an average of $130 per month for a business owner's policy, or $1,559 annually. Only small, low-risk businesses are eligible for a BOP.

A BOP is an insurance package that bundles two important types of coverage at a discount. It includes general liability coverage to protect against common lawsuits, and commercial property insurance to cover vandalism, theft, and property damage.

This is the average business owner's policy for a construction contractor who buys from Insureon:

Premium: $130 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: 1,000

The cost of a business owner's policy depends on factors such as the insurance options you choose, the size of your business, the amount of foot traffic you have, and the value of your business property.

Renovation and remodeling contractors pay an average of $201 per month for workers’ compensation insurance, or $2,411 annually. Most states require this coverage for home renovation businesses that have employees.

Workers' comp helps pay for medical costs from work-related injuries and illnesses, such as a back injury from installing a granite countertop. Even when it's not required by law, self-employed contractors often buy this coverage for financial protection against job injuries, which personal health insurance could deny.

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 a workers' compensation policy 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.

Renovation businesses pay an average of $42 per month for contractor’s tools and equipment insurance, or $500 annually.

Also called inland marine insurance, this policy covers your property whether it’s at a storage unit, in transit, or at a jobsite. It can pay for lost, stolen, or damaged tools and equipment, such as saws, ladders, hammers, tape measures, and personal protective equipment (PPE).

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.

Renovation and remodeling businesses pay an average of $239 per month, or $2,865 annually, for commercial auto insurance.

Most states require this coverage for vehicles owned by a home improvement company. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

Commercial auto insurance covers financial losses in the event of an accident involving your business vehicle. It can help pay for property damage, medical bills, and legal costs. When buying a policy, you'll need to make sure your coverage limits match the requirements in your state.

The cost of a commercial auto policy depends on your coverage needs, the value of the vehicle, and your insurance claims history. Learn how insurers calculate your premium and how to save money on your commercial auto policy. 

Contracting businesses, including renovation professionals, pay an average of $67 per month for professional liability insurance, or $808 annually. Renovation contractors can often add this coverage to general liability insurance for a discount, with the bundle costing an average of $150 monthly.

Professional liability insurance covers legal fees related to professional negligence, such as failure to use the correct materials. It's sometimes called errors and omissions insurance or E&O insurance.

This is the average coverage and pricing for contractors 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 the renovation and remodeling services you offer. Find out how insurers set professional liability insurance premiums and how to save money on your policy. 

Renovation and remodeling contractors pay an average of $116 per month, or $1,396 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.

Umbrella insurance provides an additional safeguard and helps renovators and remodelers meet contractual demands for higher limits. When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit.

The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.

Renovation businesses pay an average of $108 per month, or $1,297 annually, for builder's risk insurance. This type of business insurance is also called course of construction insurance.

A builder's risk insurance policy provides coverage for structures and materials during a construction project. It will help pay for fires, vandalism, and other types of damage to a structure in progress.

The cost of builder's risk insurance depends on the value of the structure, including materials and labor.

Renovation contractors pay an average of $9 per month, or $112 annually, for a surety bond.

A surety bond reimburses your client if you're unable to fulfill the terms of a renovation contract or other agreement. You may need a surety bond to get a contractor's license for certain types of work.

The cost of a surety bond primarily depends on the size of the bond.