General Contractor Insurance Cost & Coverage Guide for 2026

Q: If an employee of my electrical subcontractor gets injured on my job site, whose workers' compensation policy is supposed to cover it?

Typically, the subcontractor's own workers' compensation policy should cover their employee's injury. This is why it is critical to require all subcontractors to provide you with a certificate of insurance proving they have their own coverage before they start work. If they don't have it, you could be held liable.

Q: Why would a client require me to provide proof of insurance before starting a job?

Clients ask for a certificate of insurance (COI) to protect themselves. It proves you have the financial backing to cover any accidents or property damage your work might cause, ensuring they won't be left with the bill for your mistake.

Q: Does my general liability policy provide any coverage if a subcontractor's poor workmanship leads to property damage after the project is complete?

Yes. Your general liability policy's "completed operations" coverage is designed for this scenario. If a sub's faulty plumbing work causes a leak a month after the homeowners move in, your policy can help cover the resulting water damage.

Q: Is it tax deductible?

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

Q: Are building materials like lumber and copper pipes covered if they are stolen from a secured job site?

It depends on the policy. Your Tools & Equipment policy typically does not cover building materials. However, a Builder's Risk policy is specifically designed to cover theft of or damage to materials stored on a job site before they are installed.

Q: Does my premium change depending on the total value of the projects I manage?

Yes, absolutely. The size, scope, and total value of your projects are major factors in determining your insurance premium. Managing larger, more expensive projects involves greater risk, which leads to a higher insurance cost.

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General Contractor Insurance Cost

As a general contractor, you’re the master of the job site, coordinating everything from foundation to finish. But with great responsibility comes great risk. A subcontractor’s mistake, an employee injury, or stolen materials can lead to thousands of dollars in unexpected costs. General contractor insurance is your financial safety net, protecting your business so one setback doesn’t bring your entire operation to a halt.

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.

This guide will break down the essential insurance coverages for general contractors, what they typically cost, and how you can get the right protection for your business. We’ve got you covered.

General Contractor Insurance

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. General contractor insurance is a suite of policies designed to protect your business from the financial consequences of on-the-job accidents, property damage, employee injuries, and lawsuits. Without the right coverage, you could be personally liable for expensive legal fees, medical bills, and repair costs. Many clients and commercial projects will also require you to show proof of insurance before you can even bid on a job.

How Much Does Contractor Insurance Cost?

The cost of general contractor insurance varies, but most GCs pay a median price of $103 per month, or about $1,236 per year, for a policy package. Your final premium will depend on several factors, including your location, number of employees, the total value of the projects you manage, and your claims history.

Here’s a look at the median costs¹ for the most common policies general contractors purchase.

Insurance Policy	Median Monthly Cost	Median Annual Cost
General Liability	$82	$984
Workers’ Compensation	$132	$1,584
Tools & Equipment	$37	$444

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, 2025 to December 31, 2025. Reflected price tiers may not include purchase of all available policies under general contractor insurance.

What Insurance Does a General Contractor Need?

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, and protect you from common job site risks.

Here are some of the common coverage options general contractor business owners typically consider:

General liability

This is the foundation of your insurance protection. It covers costs related to third-party accidents, property damage, and bodily injury claims caused by your work or the work of your subcontractors.

Why You Need It: A framing subcontractor you hired fails to properly secure a wall, which later falls and damages the client’s neighboring property. Your general liability policy can cover the cost to repair the damage.

Median Cost: $106/month

Contractor’s equipment and small tools (Inland Marine)

Your tools and heavy equipment are essential assets. Also known as inland marine insurance, this coverage can financially protect your gear and equipment from theft or damage, whether it’s at a job site, in your vehicle, or in storage.

Why You Need It: Thieves break into your secured job site overnight and steal thousands of dollars’ worth of power tools and a generator. This coverage can help pay to replace them, so you can keep your project on schedule.

Median Cost: $33/month

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.

Why You Need It: An employee on your crew falls from scaffolding and breaks their leg, requiring surgery and months of recovery. Workers’ comp can cover their medical expenses and a portion of their lost wages.

Median Cost: $298/month

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Frequently Asked Questions (FAQs)

If an employee of my electrical subcontractor gets injured on my job site, whose workers’ compensation policy is supposed to cover it?

Why would a client require me to provide proof of insurance before starting a job?

Does my general liability policy provide any coverage if a subcontractor’s poor workmanship leads to property damage after the project is complete?

Is it tax deductible?

Are building materials like lumber and copper pipes covered if they are stolen from a secured job site?

Does my premium change depending on the total value of the projects I manage?

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