Work safely

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

Train your crew

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

Learn from past claims

Put steps in place to prevent future mishaps.

Protect your tools

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

Pay monthly

Some carriers offer monthly payments, which you can take advantage of to spread the cost out over the year.

What is home improvement insurance?

It’s a type of insurance that can help handle costs that can result from accidentally damaging a customer’s property, having your tools stolen, or being hit with a lawsuit.

Is it required by law?

It depends on your state and if you have employees. But whether it’s required or not, we strongly recommend having coverage. In fact, many clients and landlords may require it before doing business with you.

Why do I need insurance?

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

Is it tax deductible?

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

What does it cover?

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

How fast can I get a quote?

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

Home Improvement Contractor Insurance Cost

Q: Weatherproof your business

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

Try our insurance calculator.

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Home Improvement Contractor Insurance Cost

Home Improvement jobs can come with unexpected surprises — from damaged property to stolen tools or legal claims. When your project hits a snag, home improvement business insurance can help keep your business on track.

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

How Much Does Home Improvement Insurance Typically Cost?

Depending on your coverages, home improvement contractors pay a median price of $92 per month, or $1,104 per year.

Here’s a snapshot of what our customers typically pay for home improvement insurance:

Monthly Home Improvement Insurance Costs¹

Under $25

3% of customers

$25 to $95

50% of customers

Over $95

46% of customers

¹Data from Simply Business customers specializing as a “home improvement contractor/remodeler” 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 home improvement insurance.

What you pay depends on a few key things, including: the type of work you do, the size of your crew, and the type of coverage or policy you choose. But most home improvement contractors pay under $95 per month for insurance.

These numbers are based on real 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 Home Improvement 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 home improvement 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 Does General Liability Cost?

Based on the policies we’ve sold, home improvement contractors pay a median cost of $89 per month, or about $1,068 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 home improvement contractors typically pay for general liability insurance:

Monthly General Liability Insurance Costs²

$25 to $95

55% of customers

Over $95

45% of customers

²Data from Simply Business customers specializing as a “home improvement 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 home improvement contractors pay under $95 per month.

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

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

Home improvement contractors pay a median cost of $27 per month, or about $324 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 home improvement contractors typically pay for contractor’s equipment and small tool insurance:

Monthly Contractor’s Equipment and Small Tool Insurance Costs³

Under $25

48% of customers

$25 to $95

51% of customers

Over $95

1% of customers

³Data from Simply Business customers specializing as a “home improvement 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 home improvement 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?

Home Improvement business owners pay a median of $233 per month or $2,796 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 home improvement contractors typically pay for workers’ compensation insurance:

Monthly Workers’ Comp Insurance Costs⁴

Under $150

73% of customers

$150 to $250

20% of customers

Over $250

7% of customers

⁴Data from Simply Business customers specializing as a “home improvement 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 perform, your claims history, and your payroll, among other factors. But most home improvement contractors pay under $150 per month.

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

Get a quote for your Home Improvement Contractor Business Today

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What Affects the Cost of Home Improvement Insurance?

If you’ve searched online for home improvement insurance, you’ve likely seen a wide range of prices — and for no clear reason why. The truth is there isn’t a set price because 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

Home improvement 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 Home Improvement Insurance

Work safely

Train your crew

Learn from past claims

Protect your tools

Weatherproof your business

Pay monthly

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.

Get a Quote

Business Insurance Made Better

A one-minute explanation

Learn how we’re making finding business insurance fast, easy, and affordable – all in just 60 seconds.

Video transcript

Hi there we’re Simply Business and small business insurance is what we do. We work
with top insurers who specialize in small business coverage. No one size fits-all solutions here. We’ve worked with thousands of business owners like you so we have a good idea of what different businesses need. We get it, you do one web search and the results can be overwhelming, and not in a good way. We can save you from that. We’re ready when you are, it takes just a few minutes online. Enter some information about your business and some pretty cool technology shops for great coverage at competitive prices in just seconds. You choose and purchase the coverage that works for you. Not to worry we’ve got licensed insurance pros to help you over the phone then we zip your certificate of insurance and other policy documents straight to your inbox. That’s how easy it is to insure your business with Simply Business.

Trusted by Over 1 Million Small Businesses Worldwide.

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More Home Improvement Insurance FAQs

What is home improvement insurance?

Is it required by law?

Why do I need insurance?

Is it tax deductible?

What does it cover?

How fast can I get a quote?

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.

Get a Quote