How much does general contractor insurance cost?

General contractors pay an average of $142 per month, or $1,700 annually, for general liability insurance.

General liability insurance provides financial protection against common lawsuits from customers. It can cover costs if someone sues your business for an injury, property damage, or copyright infringement.

This is the average policy for general contractors who buy from Insureon:

Premium: $142 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

General contractors pay an average of $121 per month, or $1,455 per year, for a business owner's policy.

A business owner's policy bundles two important types of coverage at a discount. It includes general liability insurance to protect against common lawsuits, and commercial property insurance to cover stolen or damaged business property.

This is the average business owner's policy for general contractors who buy from Insureon:

Premium: $121 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

If you're wondering why a BOP costs less on average than general liability insurance, that's likely because only small, low-risk businesses qualify for a BOP.

The cost of a business owner's policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and the value of your business property.

General contractors pay an average of $318 per month, or $3,811 per year, for workers’ compensation insurance.

Workers' comp helps pay for medical costs from work-related injuries and illnesses. Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.

There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.

The cost of workers' compensation insurance depends on factors such as the number of employees and the type of work they do. Learn more about how workers' comp costs are calculated.

General contractors pay an average of $180 per month, or $2,157 annually, for commercial auto insurance. Most states require this coverage for vehicles owned by a business. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance instead.

A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical costs, and legal expenses.

This is the average policy for general contractors who buy from Insureon:

Premium: $180 per month
Policy limit: $1,000,000

The cost of commercial auto insurance depends on the coverage options you choose, the value of the vehicle, and the driving records of anyone permitted to drive it. Learn how insurance providers calculate your premium.

General contractors pay an average of $14 per month for contractor’s tools and equipment insurance, or $169 annually.

A form of inland marine insurance, this policy helps cover the repair or replacement of lost, stolen, or damaged tools and equipment.

This is the average policy for general contractors who buy from Insureon:

Premium: $14 per month
Policy limit: $5,000

The cost of contractor's tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Construction businesses and contractors pay an average of $74 per month, or $886 per year, for professional liability insurance. General contractors can often bundle this coverage with general liability insurance for a discount, at a combined average of $112 per month.

Professional liability insurance, also known as errors and omissions insurance (E&O), protects general contractors from legal fees related to accusations of negligence or substandard work. It would help pay for attorney's fees and other legal costs if a client sues due to a budget overrun, unexpected delay, or breach of contract.

This is the average insurance coverage for construction professionals who buy from Insureon:

Premium: $74 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250

The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and your profession. Find out how insurers set professional liability premiums.

General contractors pay an average of $143 per month, or $1,721 annually, for commercial umbrella insurance, which you can buy to boost the limits of your underlying general liability, commercial auto, or employer's liability insurance.

When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit, up to the additional limit of your umbrella policy.

The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.

General contractors pay an average of $134 per month, or $1,608 annually, for builder's risk insurance. This policy is sometimes called course of construction insurance.

Builder's risk insurance provides coverage for structures under construction. It will help pay for fires, vandalism, and other types of damage.

The cost of builder's risk insurance depends on the value of the structure, including materials and labor.

General contractors pay an average of $10 per month for surety bonds, or $125 annually. A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement.

This is the average bond for general contractors who buy from Insureon:

Cost: $10 per month
Bond amount: $10,000

The cost of a surety bond depends primarily on the size of the bond.