How Much Does Business Insurance Cost for General Contractors?
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 23
- 2 min read
For general contractors, business insurance is essential to protect against accidents, property damage, and liability claims. One of the most common questions contractors ask is: “How much will it cost?”
The cost of insurance depends on several factors, including your business size, the types of coverage you need, and your location. Using online tools from trusted providers like Wexford Insurance makes it easy to get an accurate quote.
Factors That Affect Business Insurance Costs
Type of Coverage: Different policies have varying costs:
Business Size and Revenue: Larger businesses or those with higher revenue generally face higher premiums because the potential financial exposure is greater.
Location: Insurance rates vary by state and even by city, depending on local regulations, construction risks, and claims history in your area.
Claims History and Safety Practices: Businesses with a history of claims or poor safety records may see higher premiums. Conversely, a strong safety program can reduce costs.
Coverage Limits and Deductibles: Higher coverage limits mean higher premiums, while higher deductibles can lower your costs but increase your out-of-pocket expenses in case of a claim.
Average Cost Estimates for General Contractor Insurance
While costs vary widely, here are some general estimates:
General Liability: $400–$1,500 per year
Workers’ Compensation: $2,000–$5,000 per year (depending on employees and payroll)
Commercial Auto Insurance: $600–$2,500 per year per vehicle
Professional Liability: $500–$1,500 per year
For a more accurate quote tailored to your business, Wexford Insurance provides a simple online tool to compare policies and coverage options.
How to Save on Business Insurance
Bundle multiple policies with one provider
Maintain a strong safety program on job sites
Review coverage limits regularly to avoid paying for unnecessary coverage
Compare quotes from multiple providers, including The Hartford and Insureon
Conclusion
The cost of business insurance for general contractors varies depending on coverage types, business size, location, and risk factors. By understanding your insurance needs, comparing quotes, and working with trusted providers like Wexford Insurance, you can secure the right coverage without overpaying. Protecting your business ensures peace of mind, financial security, and the confidence to grow your contracting services safely.
