Remodeling Insurance Cost & Coverage Guide for 2026
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Remodeling Insurance
Whether you’re a general contractor or a kitchen and bath specialist, small mistakes can turn into expensive problems fast. Remodeling insurance can help protect your business from common risks so that one mishap doesn’t undercut all you’ve built.
This guide will break down the essential insurance coverages for remodelers, what they typically cost, and how you can get the right protection for your business. We’ve got you covered.
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How much does remodeling insurance cost?
What is Remodeling Insurance?
Remodeling insurance is a suite of policies designed to help protect your business from the financial fallout of customer or employee injuries, property damage, theft, and business interruption, depending on the policy you choose. Without the right coverage, you could be solely on the hook for equipment repairs, legal fees, or medical bills.
How Much Does Remodeling Insurance Cost?
Remodeling insurance rates vary, and your final premium will depend on factors such as your location, number of employees, the type of remodeling business you own, and your claims history.
Here’s a breakdown of median costs1 based on our recent customer data.
Average Costs1
| Insurance Policy | Median Monthly Cost | Median Annual Cost |
|---|---|---|
| General liability | $85 | $1,020 |
| Professional liability: | $48 | $576 |
| Workers’ compensation: | $28 | $336 |
| Business owner’s policy | $132 | $1,584 |
1Data from Simply Business customers specializing as “remodelers” who purchased at least one or a combination of general liability, BOP, contractor’s equipment and small tools,and workers’ compensation policies from July 1, 2025 to December 31, 2025. The median costs shown are for illustrative purposes only; actual premiums vary by state, coverage limits, and individual business risk.
What Insurance Does a Remodeler Need?
General Liability
If you interact with clients in any way, we typically recommend having a general liability insurance policy. This foundational insurance coverage can help you handle costs from third-party accidents, property damage, legal expenses, and bodily injury.
Why You Need It:
You accidentally drill into a hidden water line during a kitchen gut, causing extensive flooding to the home’s first floor. A general liability policy could help cover the cost of repair or replacement and protect you from other third-party damage claims.
Median Cost
$85
/month*
Contractor’s Equipment and Small Tools
Also known as inland marine insurance, this coverage can financially help protect tools and equipment, and depending on the policy, even if it’s in transport or stored off-site.
Why You Need It:
You arrive at the jobsite and realize tools were stolen from your truck overnight. Contractor’s equipment and small tools insurance, also known as inland marine insurance, can help pay to replace or repair your stolen or damaged equipment, whether it’s on the move or at a jobsite.
Median Cost
$28
/month‡
Workers’ Compensation
If you have employees — even just one helper — most states require you to carry workers’ compensation. This policy covers medical bills and lost wages for employees who get injured or become ill on the job.
Why You Need It:
Your employee suffers an injury while working. Workers’ compensation can help cover their medical bills and provide wage replacement as your crew member recovers.
Median Cost
$132
/month*
Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) bundles three key coverages — general liability, commercial property, and business interruption insurance — into one convenient package. It’s designed to help protect your business from a range of common risks without the hassle and expense of managing multiple policies.
Why You Need It:
After an electrical fire at your workshop, you’re forced to stop projects while you replace essential equipment and records. A BOP can help cover the property loss and may help cover lost income if the damage prevents you from operating entirely. The business interruption part of BOP only kicks in under a covered loss. Many owners choose a BOP because it offers more protection than a stand-alone general liability policy without costing much more.
Median Cost
$48
/month*
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Business insurance —
a quick explainer
Learn more about policies for small businesses, what they cover, why you might need them, and how we can help – all in just 60 seconds.
Business insurance is often made up of different types of policies to cover different things, similar to how your health insurance can be made up of medical dental and vision coverage. Here are some of the ones small business owners need. General liability is kind of the Swiss army knife of insurance. It can do a lot, like help handle costs from third party accidents, property damage, bodily injury, and more. Nobody’s perfect, right? That’s what professional liability is for. It could come in handy in the event of honest mistakes or claims of negligence. Workers’ comp can protect your business and help take care of employees who get sick or injured on the job. Small businesses are big targets for cyber criminals. Cyber Insurance can help cover costs associated with stolen customer data, cyber attacks, breaches, and fraud. BOP or a business owners policy combines different types of coverages like general liability and commercial property insurance. Putting them together for you is where we come in. You tell us a bit about your business online or on the phone, and we customize the coverage options for what you do and what you need. It’s your business, it should be your insurance as well. That’s why we’re here.
Frequently Asked Questions (FAQs)
Typically, your general liability policy protects your business, but it does not cover a subcontractor’s faulty workmanship or the damages they cause. We recommend requiring all subcontractors to carry their own insurance and provide you with a Certificate of Insurance (COI) before they start work on your interior remodeling or exterior renovation projects.
As with most types of insurance, remodeling insurance rates will depend on a number of factors, such as:
- Your business location
- Your type of business
- The services you provide
- The value of the home and project duration
- The number of employees you have
- Your estimated revenue, payroll, and sales
- And more
It often does. Vacant properties are statistically more prone to risks such as theft, vandalism, and undetected water damage. If a home is unoccupied during a major remodel, you may need a specific Vacant Building endorsement or a Builder’s Risk policy – in addition to General liability, to ensure your new renovations and related materials are protected if a claim occurs.
A few ways to keep strong protection while trimming costs include:
- Bundle smartly: A BOP can be more cost-effective than buying general liability and property insurance separately.
- Right-size your limits: Make sure your limits match your real exposure and budget.
- Reduce preventable claims: Slip-and-fall prevention, staff training, and good maintenance can pay off over time.
- Keep your info current: Accurate payroll, sales, and equipment values help avoid overpaying.
- Compare options: We provide customized coverage recommendations and remodeling insurance quotes from top-rated small business insurers so you can see them side by side.
Why Small Businesses Choose Simply Business
Small business insurance is what we do. Whether it’s covering you for accidents and errors, meeting workers’ comp requirements, or financially protecting your business from the unexpected, we can help find the coverage you need for your business.
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*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.
‡ Displayed price is based on the lowest available coverage limit for Equipment and Small Tools policies.