Contractor General Liability Insurance Cost UbTrueBlueCom

Contractors general liability insurance helps protect your business if someone gets hurt or their property is damaged. This insurance is crucial because it covers the costs of these claims, so you don’t have to pay out of your own pocket.

Contractors face all kinds of risks in their work, whether they’re meeting clients in stores or working at clients’ homes. While not every state requires it, having this insurance is really important for most construction businesses.

To make sure you’re all set, it’s good to know the basics of general liability insurance. This guide breaks it all down for you, from the cost, why it’s important to what you might need to do legally. So, take a look below to learn more and keep your business safe from unexpected costs.

How Much Does General Liability Insurance Cost For A Contractor?

For contractors, having general liability insurance is important. It’s not just a formality; it’s a way to protect your business in case something goes wrong. Whether you’re a carpenter, a cleaner, or a builder, this insurance can save you from big financial problems.

So, how much does it cost? Well, it varies depending on different things like how much coverage you want, where you work, and what risks you face.

According to Insureon, a company that helps with insurance, most general contractors pay about $90 a month, which adds up to around $1,090 a year. This covers a policy with a $1 million limit for each incident and a $500 deductible.

1. Carpentry Contractors

For carpenters, having the right insurance is crucial, just like choosing the perfect wood for a project. Most carpenters pay less than $70 a month, or about $835 a year, for comprehensive coverage.

With this insurance, carpenters are covered for up to $1 million per incident, with a $500 deductible. This gives them the flexibility to adapt their coverage based on the project they’re working on.

2. Cleaning Contractors

Cleaning and janitorial businesses also need reliable insurance. Most cleaners pay less than $45 a month, or around $530 a year, for liability protection.

This insurance option fits different budgets, with 16 percent paying less than $500 a year, and 69 percent paying between $500 and $1,000. Only 15 percent pay over $1,000 a year.

3. Construction Contractors

Construction work carries risks, so insurance is vital. Typically, construction firms pay less than $70 a month, or about $825 a year, for basic liability coverage.

Within the construction industry, 24 percent pay less than $600 a year, while 48 percent pay between $600 and $1,200. About a quarter pay over $1,000 a year for comprehensive protection.

4. Electrician Contractors

Electricians keep our spaces lit, and their insurance costs tell us how they stay financially secure. On average, they pay about $45 a month or $540 a year for general liability protection.

This coverage gives them up to $1 million per year, with a $500 deductible, so they can work without worrying about accidents.

5. Excavator Contractors

For companies that dig, insurance isn’t just a bill – it’s a smart move. Research shows that small excavation firms pay between $83 and $127 per month for coverage of $2 million per year and $1 million per incident.

The price depends on where they work, how big they are, and their history, giving them a plan tailored to their needs.

6. Handyman Contractors

Handymen bring different skills together, and insurance is part of the package. According to Insureon, they usually spend about $65 a month or $800 a year for general liability coverage.

With up to $1 million per incident and a $500 deductible, they can tackle any job with confidence, whether it’s fixing leaks or patching walls.

7. HVAC Contractors

HVAC contractors need to keep places comfy and their finances in check. They typically pay between $37 and $59 each month for insurance, covering up to $2 million per year and $1 million per incident. The price varies based on factors like where they work, how big their business is, and their experience level.

8. Landscaping Contractors

Landscapers mix nature’s beauty with smart money management. They usually spend about $45 monthly or $530 yearly on insurance. This policy includes a $1 million per incident limit, $1 million overall limit, and $500 deductibles, keeping their outdoor creations protected.

9. Painter Contractors

Painters bring walls to life, and insurance safeguards their work. Different types of painters, like sign painters, typically pay around $50 a month or $600 annually for coverage. This policy has a $1 million per incident limit and a $250 deductible, offering a safety net for their projects.

10. Plumbing Contractors

Plumbers need insurance to protect their work and finances. On average, they spend less than $125 a month or about $1,480 a year for this coverage.

Their insurance covers up to $1 million for each problem and has a $500 deductible. This helps keep both their pipes and wallets safe.

11. Roofing Contractors

Roofers also need insurance because their work comes with risks. They typically pay around $300 a month or $3,590 a year for insurance.

Their insurance covers up to $1 million for each problem, but they have to pay $1,000 out of pocket first. This helps cover the higher risks involved in roofing jobs.

What Does Contractors General Liability Insurance Cover?

Think of insurance like a safety net for contractors. It helps protect you from different risks. Here’s a simple explanation of what it covers:

  • Property Damage: If you accidentally damage someone else’s property or something gets stolen, this part helps cover it.
  • Bodily Injury: If someone gets hurt because of your work, this part helps cover it. It includes things like saying something bad about someone, invading their privacy, falsely accusing them, or kicking them out of their home by mistake.
  • Personal and Advertising Injury: This part helps if someone says you used their ideas in your ads without permission or if you copied someone’s work without asking.

You can also add extra coverage:

  • Data Breach Coverage: In today’s digital age, this is important. It helps if someone steals information from your computer or if you accidentally let them in. It covers things like telling people their info got stolen, watching their credit, and making your system safer.
  • Equipment Coverage: This covers your tools and stuff. If they get broken, stolen, or lost, this helps pay to fix or replace them. It fills in the gaps between your regular insurance and your property insurance.

How Is General Liability Insurance Calculated For Contractors?

Every contractor’s situation is different, so their insurance costs will be unique to them. Let’s talk about how it calculated and what makes insurance costs go up or down for contractors:

  • Type of Business: Different types of work have different risks. Some jobs are riskier than others, so insurance costs can vary.
  • Business Experience: How long a contractor has been in business matters. The longer they’ve been around, the more they might know how to avoid problems. This can sometimes mean lower insurance costs.
  • Location: Where a contractor works can affect insurance prices. If they work in an area with lots of crime, insurance might cost more because there’s a higher chance of something going wrong.
  • Number of Employees: More workers usually mean more risk. Insurance companies might charge more if a contractor has a lot of employees because there’s a higher chance of accidents happening.
  • Claims History: If a contractor has had a lot of problems in the past, insurance might cost more. Insurance companies look at past issues to guess how likely it is that there will be more in the future.
  • Policy Details: The specifics of the insurance policy matter too. Things like how much coverage a contractor gets and how much they have to pay out of pocket if something happens can affect the price.

Top General Liability Insurance Companies for Contractors

Finding the right general liability insurance can be overwhelming with so many options out there. With these top providers, you can easily compare your options and choose the coverage that’s right for you.

  • CoverWallet: This platform makes comparing quotes easy. With its user-friendly interface, you can quickly see multiple quotes and make a decision that fits your needs.
  • Simply Business: If you’re looking for affordable coverage without sacrificing quality, Simply Business is a great choice. They understand that cost is important for many contractors and offer solutions that won’t break the bank.
  • InsurePro: Life in construction is unpredictable, and InsurePro gets that. They offer flexible coverage that can be adjusted to match the ups and downs of your projects.
  • Next: When it comes to comprehensive coverage, Next has you covered. They understand the importance of protecting your business from all angles, so you can focus on the work at hand.
  • Thimble: For part-time contractors, Thimble offers tailored coverage that fits your schedule. They know that balancing work and life can be tough, so they make sure you’re protected when you need it most.

3 Ways to Find Affordable General Liability Insurance for Contractors

Looking for cheap insurance for your contracting business? Here’s how to do it:

  • Compare Prices: Don’t settle for the first quote you see. Take a look at a few different options to find the best price. Websites like CoverWallet,, or can help you gather multiple quotes in one place.
  • Stay Updated: Insurance rates can change, so it’s smart to keep an eye out for better deals. Before your policy is up for renewal, take some time to get new quotes. You might find a cheaper option that wasn’t available before.
  • Ask About Discounts: Many insurance companies offer discounts that can lower your premiums. When you’re getting quotes or renewing your policy, ask about any discounts you might qualify for. This could include bundling policies or having safety features in your business.