How much does insurance cost for installation professionals?

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

Insureon’s licensed agents typically recommend a business owner’s policy (BOP) 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.

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. Businesses with more public interaction tend to pay more for this policy, since there's an increased risk of customer accidents.

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.

A business with a large footprint, such as a two-story ceiling and wall installation company, typically will pay more for general liability insurance than a small company like a drywall installer with a few employees. 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.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's general liability insurance cost analysis page.

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.

Even when it's not required, it can be a good idea to purchase this coverage for yourself or your employees. Health insurance plans can deny claims for work-related injuries, which could leave you paying expensive medical bills out of pocket.

The median premium for workers' comp is about $260 per month or $3,150 per year for drywall, flooring, and other installation businesses.

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.

Learn how workers' comp premiums are calculated and more on Insureon's workers' compensation insurance cost analysis page.

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.

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.

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

Learn how coverage limits and other factors affect the cost of this policy on Insureon's commercial auto insurance cost analysis page.

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 the 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.

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

Learn which coverage limits to choose and more on Insureon's contractor's tools and equipment insurance cost analysis page.