Average Insurance Cost for a Restoration Contractor in 2026
- Nate Jones, CPCU, ARM, CLCS, AU
- 3 days ago
- 2 min read
Running a restoration contracting business comes with significant risks, from water and fire damage restoration to mold remediation and structural repairs. Understanding the average insurance cost for a restoration contractor in 2026 helps business owners budget effectively and ensure they have the right protection in place. Insurance not only protects your finances but also builds trust with clients, many of whom require proof of coverage before signing a contract.
1. Key Factors Affecting Insurance Costs
Several factors influence the cost of insurance for restoration contractors:
Business Size and Employee Count: Larger businesses or those with more staff generally face higher premiums due to increased exposure to liability.
Revenue and Project Scope: Companies taking on high-revenue projects or large-scale restoration work often pay more to secure adequate coverage.
Coverage Types: Costs vary depending on whether you purchase general liability, workers’ compensation, commercial property, and professional liability insurance, or a combination of these.
Location and Risk Profile: Businesses operating in areas prone to natural disasters or high claims tend to have higher premiums.
Claims History: A clean claims record can help reduce costs, while frequent past claims may increase premiums.
2. Average Insurance Cost Estimates
While costs vary by region and business size, restoration contractors in 2026 can expect approximate annual premiums as follows:
General Liability Insurance: $750–$2,500
Workers’ Compensation: $3,000–$7,500 for small crews; higher for larger teams
Commercial Property Insurance: $1,200–$3,800 depending on equipment and property value
Professional Liability Insurance: $1,200–$4,500 depending on project complexity
Bundling multiple policies or maintaining high safety standards may reduce overall costs and provide additional discounts.
Tips to Reduce Insurance Costs
Restoration contractors can lower premiums without compromising coverage by:
Implementing strict safety protocols and employee training programs
Maintaining organized records of past projects and claims
Bundling multiple policies with one provider for discounts
Choosing higher deductibles strategically to reduce premiums
Why Choose Wexford Insurance
Navigating insurance options can be overwhelming. Wexford Insurance specializes in contractor business insurance and can provide tailored coverage based on your company’s size, location, and project type. Their team can help you identify the right policies and secure a competitive rate.
