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How much does insurance cost for installation professionals?

Several factors contribute to the cost of installation business insurance, including the size of your business and its risks. Cost estimates are sourced from policies purchased by Insureon customers.

General liability insurance icon

General liability insurance costs for installation businesses

Installation businesses pay a median premium of less than $60 per month, or $710 per year, for general liability insurance. This policy provides protection against customer injuries and property damage, along with advertising injuries.

Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your tile, glass, or HVAC installation company, and costs less than purchasing each policy separately.

Learn more about general liability insurance.

Your level of risk affects general liability costs

Among installation businesses that purchase general liability with Insureon, 36% pay less than $600 per year, and 45% pay between $600 and $1,200 per year. High-risk businesses tend to pay more for general liability insurance.

Cost of general liability insurance for installation businesses.

Common general liability policy limits for installers

Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.

Most installation businesses (98%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

Your type of installation work affects the cost of general liability insurance

Businesses with large premises, such as two-story ceiling and wall installation company, typically pay more for general liability insurance than a small company like a drywall installer. Your industry risk, building maintenance, years in operation, and your location will also affect your premium.

The annual median cost for a ceiling and wall installation business is $980, while the median for drywall installation is $589 – or less than $50 a month. As you can see, the cost can vary significantly across professions.

What do different installation businesses pay for general liability insurance?

Median annual cost of general liability insurance for installation businesses by profession.
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Workers’ compensation insurance icon

Workers’ compensation insurance costs for installation businesses

To meet your state’s requirements and avoid penalties, installation businesses with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness.

With a median premium of about $260 per month, or $3,150 per year for drywall, flooring, and other installation businesses, policy cost is determined by your number of employees and their occupational risk, among other factors.

Learn more about workers' compensation insurance.

The cost of workers’ compensation insurance depends on the number of employees

Among installation businesses that purchase workers’ compensation insurance with Insureon, 32% pay less than $2,000 per year, and 29% pay between $2,000 and $4,000 per year. The cost varies based on the number of employees and the level of risk involved with their jobs, among other factors.

Cost of workers’ compensation insurance for installation businesses.
Commercial auto insurance icon

Commercial auto insurance costs for installation businesses

Installation businesses pay a median premium of about $150 per month, or $1,810 per year, for commercial auto insurance. This policy can pay for third-party property damage and medical bills in an accident, along with vehicle damage caused by theft, weather, and vandalism. 

Businesses with company-owned vehicles, such as HVAC trucks and appliance company vans, must purchase commercial auto insurance.

Learn more about commercial auto insurance.

Your vehicles and their use determine commercial auto costs

Among installation businesses that purchase commercial auto insurance with Insureon, 13% pay less than $1,000 per year and 46% pay between $1,000 and $2,000 per year. The cost primarily depends on the vehicle's value and how often it is driven.

Cost of commercial auto insurance for installation businesses.

Which commercial auto insurance limits do installation companies choose?

Most installation businesses choose commercial auto policies with a $1 million generic limit.

Contractor’s tools and equipment coverage icon

Contractor’s tools and equipment insurance costs for installation businesses

Installation businesses pay a median premium of less than $15 per month, or $170 per year, for contractor’s tools and equipment insurance. A form of inland marine insurance, this policy helps pay for repair or replacement of an installation contractor’s lost, stolen, or damaged equipment and tools. The cost varies depending on the value of your tools and equipment.

Learn more about contractor's tools and equipment coverage.

Which contractor’s tools and equipment insurance limits do installation companies choose?

Most installation businesses choose contractor’s tools and equipment policies with a $5,000 generic limit.

Compare quotes from trusted carriers with Insureon

Insureon’s installation business insurance agents work with top-rated U.S. carriers to find affordable coverage that fits your business. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of tile, appliance, and glass installation.

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