Commercial Contractor Insurance

Business Insurance Built for Commercial Contractors

As a commercial contractor, you know how much planning and work goes into the execution of a single project. From securing permits to scoping the project, many variables make up a successful contracting project.

There’s a chance that something can go awry with so many variables — even if you are an experienced contractor. Do you have the proper protection if something goes wrong?

At Simply Business, we’re committed to helping you find commercial contractors insurance policy options that fit your business’s needs, based on the information you provide. We’ve worked with thousands of business owners, so you can trust that you’re in good hands.

Plus, we make it easy to get the coverage you need. Just give us 10 minutes, and we can show you policies that meet your business’s unique needs.

Ready to get the coverage you deserve?

Business Insurance Policies Available for Commercial Contractors:

  • General liability insurance
  • Workers compensation insurance


  • It can protect your business from certain claims.
  • It can cover damages caused by your negligence.
  • Proof of insurance can help clients feel good about your work.
  • It may be required where you’re located.
Commercial contractor using caulking gun

What Type of Insurance Should I Consider for My Commercial Contracting Business?

Your business is unique. Therefore, you need insurance that’s specific to your business. Insurance for commercial contractors can include several policies, which can help protect you from the risks and liabilities you may face in your industry.

When building your commercial contractors insurance bundle, we may suggest these two core plans as part of your comprehensive policy:

General Liability Insurance

As a commercial contractor, you likely rent an office space where you work and meet with clients to discuss projects. If you have a designated space like this, you’ll likely need commercial general liability (GL) insurance.

This policy type can cover the cost of incidents such as third-party accidents, property damage, and bodily injury to a third party.

GL insurance is highly recommended as a foundational policy because it can protect you and your business from significant costs and claims. For example, the average customer injury or damage claim (something that GL covers) is $30,000.

Without general liability insurance, you run the risk of potentially paying for those costs out of your bank account.

So how does general liability insurance function in a real situation?

Let’s say that while working on a job site, you leave a few tools out unattended. As a result, someone accidentally trips over the tools, and they break their wrist.

In this case, your general liability insurance could typically cover the cost of the individual’s medical bills and any legal costs if they were to sue you.

To summarize, here’s what general liability insurance usually can cover:

  • Bodily injury to another person
  • Third-party property damage
  • Personal and advertising injury
  • Medical expenses
  • And more

Here’s what general liability insurance usually doesn’t cover:

  • Damage to your own property
  • Professional services
  • Workers compensation or injury to your employees
  • Damage to your work
  • Motor vehicles while in business use
  • Expected or intentional injury or damage
  • And more

Workers Compensation Insurance

If you have any full-time, part-time, or even temporary employees on your team, you may be required to carry workers compensation insurance. This type of coverage may be able to cover the costs associated with an employee injury or illness they sustain while working for you.

Most states require business owners with employees to carry workers compensation insurance; check to see what the requirements are in your state.

Not only is workers compensation insurance important for protecting your employees, but it’s also a critical element to running a successful business. With the estimated average work injury cost being $41,000, carrying workers compensation insurance is a responsible business decision.

Even if you have only a few employees on your team, it’s a smart idea to include workers compensation insurance as part of your overall commercial contractors insurance coverage.

To summarize, workers compensation insurance for commercial contractors can cover:

  • Medical payments
  • Lost wages
  • Rehabilitation expenses
  • Death benefits
Commercial contractors working on glass roof

Why Should I Get Insurance for My Commercial Contracting Business?

Maybe you aren’t sure if this is the right time to get business insurance. Perhaps you’re just getting started in the industry and want to keep your expenses to a minimum.

We get it. But here’s the truth: business insurance can be critical to reducing the liabilities and risks you may face, even if you have only a few clients. What happens if something goes wrong, despite your doing everything right?

Although we can mitigate the risks we face, that doesn’t mean they can’t happen. Here are some of the most common incidents that can happen to a small business, including their average costs:

  • Reputational Harm — $50,000
  • Client Injury or Damage — $30,000
  • Client Slip and Fall — $20,000

Those costs can be devastating to a small business. If you have the proper protection of commercial contractors insurance, your policy could cover all or some of the costs of any claims or lawsuits you may experience.

Did you know that up to 43% of small business owners polled reported being threatened with or involved in a civil lawsuit? That’s right — a client could potentially sue you even if you held up your end of the project.

Protect the business you worked so hard to build. At Simply Business, it’s easy to secure an insurance plan that’s unique to your business — at the right price. Just answer a few questions about your business, and you can start comparing quotes from top insurers across the country.

Plus, we can provide you with a certificate of insurance (COI), so you can start providing proof of coverage to clients, vendors, and potential employees.

Question marks

Commercial Contractors Insurance FAQs

Because commercial contractors insurance can be a bundle of several policies, you may be required to carry some coverage, but not others. State requirements vary.

For instance, perhaps your state requires you to carry workers compensation if you have employees, but not general liability insurance.

In general, commercial contractors insurance premiums are income tax-deductible by the IRS. We recommend speaking to an accountant if you have questions about your business’s deductible expenses, though.

The amount of coverage your business may need will depend on a few factors:

  • The size of your business
  • Your business’s location
  • Your annual revenue and payroll
  • And more

If you aren’t sure what type of insurance coverage you need, our quote form is built to recommend insurance plans for you, based on your needs and the responses you provide.

If you have questions, our licensed insurance agents are available to assist you.

If you’re ready to check out your free quotes, it’s a good idea to have the following information available to make the process as quick as possible:

  • Annual revenue estimates
  • Payroll estimates
  • Information on any previous claims

It may, as your state may have different insurance requirements for commercial contractors than another state (especially when it comes to workers compensation policies).

That’s why our quote process is so important when shopping for an insurance plan. Our questions can narrow down policies for you, based on your needs, as well as any requirements your state may have concerning insurance protection.

Commercial contractors insurance depends on the policies you need to meet your business’s needs. For example, if you opt for both core policies — general liability and workers compensation — your insurance plan can cover:

  • Bodily injury
  • Accidents and damages
  • Employee injuries
  • Negligence or alleged negligence
  • And more

The cost of commercial contractors insurance varies depending on your business and its unique needs. For the most part, you can expect your insurance premiums to be determined by:

  • The number of employees and subcontractors who work for you
  • Your business location
  • The type of services you provide
  • And more

Ready to see how much your commercial contractors insurance may cost? Just click here and get free quotes from top insurers in the country.

Commercial contractors inspect ceiling

Why Choose Simply Business?

Simply Business is an online insurance platform that makes it easy to compare the best policies and quotes from top insurers. We’re one of the fastest-growing online providers of small business insurance, with thousands of customers who trust us to protect their businesses.

Why choose us? It’s simple:

  • We’re fast and affordable. You have a lot on your plate, and you don’t have time to worry about your insurance coverage. Our policy options are fast, affordable, and ready whenever you are.

  • We’re flexible. Your business changes over time, so you need an insurance policy that can keep up. We’re here to help make sure you’re protected.

  • We understand your business’s unique needs. You deserve an insurance policy that gets your business. We can help you get that coverage.

You work hard to build your commercial contracting business, and you should have an insurance policy that protects that hard work.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.

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