Get a business insurance quote in minutes
Compare coverage and pricing from top-rated carriers — free, no commitment.
Coverage questions for this industry
Contractors often need general liability, commercial auto, tools coverage, workers compensation, and certificates of insurance before starting jobs. Insurance needs usually depend on contracts, state rules, employee status, business vehicles, customer interaction, equipment, property, and whether advice or professional services are involved.
Common policies to research
Ask how this coverage applies to contractor insurance guide and what exclusions or endorsements may matter.
Ask how this coverage applies to contractor insurance guide and what exclusions or endorsements may matter.
Ask how this coverage applies to contractor insurance guide and what exclusions or endorsements may matter.
Ask how this coverage applies to contractor insurance guide and what exclusions or endorsements may matter.
Ask how this coverage applies to contractor insurance guide and what exclusions or endorsements may matter.
Ask how this coverage applies to contractor insurance guide and what exclusions or endorsements may matter.
Risk signals to discuss
- General contractors
- Remodelers
- Subcontractors
- Jobsite damage
- Client contracts
Before comparing quotes
Prepare annual revenue, payroll, subcontractor use, location, vehicle details, equipment values, prior claims, and copies of contracts requiring insurance. If a client asks for additional insured status or a certificate of insurance, show the exact wording to a licensed professional.
Cost factors to organize
Common quote factors include state, industry, years in business, annual revenue, payroll, prior claims, number of employees, subcontractor usage, vehicle use, coverage limits, deductible choices, property values, and whether customers or workers visit job sites. Keeping these details consistent across quote requests makes comparisons more useful.
Frequently asked questions
What insurance do contractors need to pull permits or bid jobs?
Most general contractors are asked for a general liability certificate with $1M per occurrence and $2M aggregate limits, workers compensation if they have employees, and commercial auto for work vehicles. Some jurisdictions also require a surety bond.
How much does contractor liability insurance cost?
Small contractors typically pay $80 to $250 per month for general liability, with totals of $400 to $1,500+ per month once workers comp, tools, and commercial auto are added. Trade type, payroll, and revenue drive most of the premium.
Do I need workers compensation if I only use 1099 subcontractors?
In many states, uninsured subcontractors are treated as employees for workers compensation purposes, and a general contractor can be charged premium for them at audit. Collecting certificates of insurance from each sub is critical.
What is an additional insured endorsement and why do GCs ask for it?
Additional insured wording extends your liability policy to protect a third party, like a general contractor or property owner, for claims arising from your work. Many master service agreements require it as a contract condition.
Does contractor insurance cover tools stolen from a truck?
A standard general liability policy does not cover your own tools. You typically need an inland marine or contractors equipment policy to insure tools, jobsite materials, and equipment against theft and damage.
What is the difference between a surety bond and liability insurance?
A surety bond guarantees you will perform work or meet license obligations, and pays a third party if you do not. Liability insurance protects you against claims for bodily injury or property damage you cause.
Ready to protect your business?
Get instant quotes from multiple carriers and compare side-by-side.
Start Free Comparison →EDITORIAL REVIEW
How this page was checked
BusinessPolicyGuide reviews this page for factual clarity, buyer relevance, and limitations. Product features, prices, rules, and availability can change, so readers should confirm material decisions with the provider or relevant government agency.
- Ownership: BusinessPolicyGuide editorial desk.
- Evidence standard: official product pages, pricing pages, government guidance, and clearly labeled editorial analysis.
- Scope: educational comparison of small-business insurance education; not individualized legal, tax, accounting, insurance, medical, or financial advice.
Primary references: U.S. Small Business Administration insurance guide · National Association of Insurance Commissioners
Contractor evidence file
Separate the policy decision into jobsite injury, completed-operations, tools in transit, owned or hired vehicles, and subcontractor risk. Keep certificates from subcontractors, written scope descriptions, payroll by trade, and a list of high-risk work such as roofing, excavation, or structural changes. Ask whether completed-operations coverage continues after the job ends and whether exclusions conflict with the actual work performed. A general liability limit alone does not answer these questions.