Factors That Affect the Cost of a General Contractor Insurance Quote
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 23
- 2 min read
When getting a general contractor insurance quote, several factors determine how much you’ll pay. Understanding these elements helps you budget correctly and ensures you get the coverage your business truly needs.
1. Type of Insurance Coverage
The types of insurance you need are the biggest factor in determining cost. Common coverage options for general contractors include:
General Liability Insurance: Protects against third-party injuries or property damage.
Workers’ Compensation Insurance: Required if you have employees to cover workplace injuries.
Commercial Auto Insurance: Covers vehicles used for business purposes.
Professional Liability Insurance: Protects against claims of negligence, errors, or omissions in your work.
Different policies carry different risk levels and premium costs, so your combination of coverage directly impacts your quote.
2. Business Size and Revenue
Larger businesses with more employees or higher annual revenue usually face higher premiums because the potential liability exposure is greater. Even small changes in revenue or payroll can affect your insurance quote.
3. Location and Project Types
Insurance rates vary by state, city, and even zip code. Contractors working in areas with higher construction risk or stricter regulations may pay more. Additionally, the type of projects you handle—residential vs. commercial, for example—affects the quote.
4. Claims History and Risk Profile
A business with previous insurance claims or safety violations may see higher premiums. Conversely, contractors with excellent safety programs, certified training, and strong risk management practices can often secure lower rates.
Higher coverage limits increase your premium, while higher deductibles can reduce it—but at the cost of higher out-of-pocket expenses if a claim occurs. Balancing coverage limits and deductibles is key to an affordable quote.
6. Number of Vehicles and Equipment
If your business relies on trucks, vans, or heavy machinery, your commercial auto and equipment coverage needs will affect your insurance costs. More vehicles or expensive tools generally mean higher premiums.
Get a Personalized Quote with Wexford Insurance
The easiest way to know your exact cost is to request a quote online. Wexford Insurance offers tailored general contractor insurance quotes that consider all of the factors above. Their quick and user-friendly online tool lets you compare coverage options and find the right plan for your business.
