General Contractor Insurance Cost

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General Contractor Insurance Cost

From jobsite accidents to stolen tools and legal headaches, even a small setback can shake the foundation of your business. That’s where general contractor insurance comes in — helping you stay covered so you can keep building your business.

Let’s break down what general contractor insurance costs, what affects the price, and how Simply Business makes getting coverage easier and more affordable.

For the purposes of this article, “General Contractor’s Insurance” is not a single product, but refers to one or a combination of insurance policies, such as Commercial General Liability, that a general contractor typically needs.

How Much Does Contractor Insurance Cost?

Depending on your coverages, general contractors pay a median price of $103 per month, or $1,236 per year.

Here’s a snapshot of how much our customers typically pay for general contractor insurance:

Monthly General Contractor Insurance Costs¹

Under $50

7% of customers

$50 to $150

56% of customers

Over $150

37% of customers

¹Data from Simply Business customers specializing as a “general contractor” who purchased at least one or a combination of general liability, tools and equipment, or workers’ compensation policies from July 1, 2024 to December 31, 2024. Reflected price tiers may not include purchase of all available policies under general contractor insurance.

What you pay depends on a few key things, including: the type of work you perform, the size of your crew, and the type of coverage or policy you choose. For example, general contractors that purchase a workers’ compensation policy will generally pay more than those who do not purchase this coverage. Most general contractors pay under $150 per month for one or more insurance products.

These numbers are based on actual policies purchased through our site. But getting a great premium isn’t just about the numbers — it’s about working with a partner that understands your business. And because we work with a range of trusted insurers, you’ll see coverage options to match your business, so you can choose a customized package that works for you and your budget.

Coverage Options for General Contractor Insurance

Whether you’re a solo operator just starting out or a seasoned pro with a growing crew, we can help you find personalized coverage to fit your needs and budget.

There’s no one-size-fits-all policy, but here are some of the common coverage options general contractor business owners typically consider:

General liability

A foundational coverage to help handle costs from third-party accidents, property damage, and bodily injury.

Contractor’s equipment and small tools

Also known as inland marine insurance, this coverage can financially protect equipment and inventory that is in transport or stored offsite.

Workers’ comp

Coverage to help take care of employees who get sick or injured on the job. Most states require this coverage for small businesses with full- or part-time employees. It also can benefit business owners who don’t have employees.

How Much Is General Liability Insurance for Contractors?

Based on the policies we’ve sold, general contractors pay a median cost of $106 per month, or about $1,272 per year, for general liability insurance. It’s a foundational coverage to help handle costs from third-party accidents, property damage, and bodily injury.

Here’s a snapshot of what our general contractors typically pay for general liability insurance:

Monthly General Liability Insurance Costs²

Under $50

2% of customers

$50 to $150

61% of customers

Over $150

37% of customers

²Data from Simply Business customers specializing as a “general contractor” who purchased a GL insurance policy from July 1, 2024 to December 31, 2024.

What you pay depends on a few key things, including: the type of work you do, the size of your business, and the amount of coverage you choose. But most general contractors pay under $150 per month for general liability insurance.

To learn more about the cost of general liability insurance, check out our helpful general liability cost guide.

How Much Does Contractor’s Equipment and Small Tools Insurance Cost?

General contractors pay a median cost of $33 per month, or about $396 per year, for contractor’s equipment and small tools insurance — also known as inland marine insurance. This coverage can financially protect your tools, equipment, and inventory while in transport or stored offsite.

Here’s a snapshot of what our general contractors typically pay for contractor’s equipment and small tool insurance:

Monthly Contractor’s Equipment and Small Tool Insurance Costs³

Under $25

37% of customers

$25 to $95

54% of customers

Over $95

9% of customers

³Data from Simply Business customers specializing as a “general contractor” who purchased a tools and equipment insurance policy from July 1, 2024 to December 31, 2024.

The cost of contractor’s equipment and small tool insurance — also known as inland marine — depends on the value of your tools and equipment and the type of work you do. But most general contractors pay under $95 per month.

To learn more about contractor’s equipment and small tool insurance, check out our helpful contractor’s equipment and small tools cost guide.

How Much Does Workers’ Compensation Insurance Cost?

General Contractor business owners pay a median of $298 per month or $3,576 per year for workers’ comp. Most states require workers’ comp for small businesses with full- or part-time employees –– it can help take care of your crew if they get sick or injured on the job.

Here’s a snapshot of what our general contractors typically pay for workers’ compensation insurance:

Monthly Workers’ Comp Insurance Costs⁴

Under $150

15% of customers

$150 to $250

26% of customers

Over $250

59% of customers

⁴Data from Simply Business customers specializing as a “general contractor” who purchased a tools and equipment insurance policy from July 1, 2024 to December 31, 2024.

Your workers’ comp premium is calculated based on the type of work your crew performs, your claims history, and your payroll, among other factors. Most general contractors pay about $298 per month.

To learn more about workers’ compensation insurance, check out our helpful workers’ comp cost guide.

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What Affects General Contractor Insurance Cost

If you’ve searched online for general contractor insurance, you’ve likely seen a wide range of prices — and no clear reason why. The truth is there isn’t a set price, since the cost depends on several key factors, including:

Type of work you do

Riskier jobs (like roofing or electrical) usually cost more to insure than low-risk tasks like minor repairs or painting.

Business size

Contractors who work for themselves typically pay less than businesses with multiple crews working at multiple sites.

Location

Rates may vary by state and city due to local laws, risk levels, and foot traffic in your area

Number of employees

More employees can mean more exposure to accidents and higher workers’ comp premiums.

Coverage type & limits

The more coverage you need the more you’ll likely pay.

Your claims history

If you’ve had past claims, that might bump up your rate.

Your experience

Have you been in business for years with no claims? That could work in your favor.

Some Ways to Save on General Contractor Insurance

Use ladders properly, secure tools, and follow basic jobsite safety — fewer accidents often mean lower premiums.

If you have helpers, make sure they’re trained on tool use, hazard spotting, and customer etiquette to avoid costly claims.

Put steps in place to prevent future mishaps.

Store tools securely and consider alarms — theft claims can drive up contractor insurance costs.

Cover or store materials properly and secure ladders or debris to reduce storm-related losses.

Shop around

Simply Business provides customized coverage options from top-rated small business insurers — all in just 10 minutes. We do all the leg work so you can sit back, compare quotes, and save.

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More General Contractor Insurance FAQs

Certain insurance products, like workers’ compensation, may be required by law but it depends on your state and if you have employees. But whether it’s required or not, we strongly recommend having some coverage. In fact, many clients and landlords may require it before doing business with you.

Because even a single accident or lawsuit could cost your business thousands out of pocket. General contractor insurance helps protect you from a financial hit like that — so that one mistake doesn’t turn into a major setback.

Yes — insurance premiums are usually considered a business expense. But always check with your accountant to be certain.

The right combination of policies can cover damage to someone’s property, stolen equipment, and sick or injured employees.

You can get a full quote in about 10 minutes — and an estimate even faster, with just 3 quick questions.

The Simply Business Difference

Simply Business is a digital insurance brokerage. That means we’re not tied to one insurer. Instead, we partner with a range of top-rated carriers and use smart technology to match you with policies that fit your specific business, your risks, and budget.

Maybe you’re just starting out and want solid protection without overspending. Or maybe you’re growing fast and need coverage that can grow with you. Either way, we’re here to help — with a choice of affordable policies and small business expertise to help you get the coverage you need.

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