How Much Is Insurance Cost for a Solar Panel Installation Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
One of the biggest expenses for a solar panel installation business—after equipment and labor—is insurance. Insurance protects you from liability, property damage, employee injuries, and equipment loss. But how much should you budget for it? Below is an overview of typical insurance costs for solar installation companies and the major factors that influence pricing.
Typical Insurance Costs for Solar Installation Businesses
Insurance costs vary depending on the company size, number of employees, vehicles, location, and past claims. Below are general annual cost ranges based on industry averages for small solar contractors:
Type of Insurance | Typical Annual Cost Range |
$674 – $1,152 | |
Commercial Insurance Package | $985 – $2,380 |
$1,500 – $5,000 (varies by payroll*) | |
$1,790 – $3,405 | |
$400 – $1,320 | |
Product / Professional Liability | $210 – $825 |
*These ranges are rough estimates for small to mid‑sized solar installers. The exact premium depends on coverage limits, deductible choices, and business specifics.
What Affects Solar Installation Insurance Costs?
1. Policy Types and Coverage Limits
Broad coverage (higher limits) means higher premiums. Basic liability is cheaper, while comprehensive packages with employee and equipment protection cost more.
2. Number of Employees & Payroll
Workers’ compensation is heavily influenced by payroll figures. More installers generally means increased premiums.
3. Vehicles and Equipment
Companies with multiple service vehicles and expensive installation tools will see higher insurance costs.
A business with a clean claims history usually receives lower rates.
5. Location
Areas with higher weather risk or stricter local insurance requirements can increase premiums.
Ways to Estimate Your Solar Insurance Budget
A general rule for installation businesses is that insurance can account for $3,000 to $20,000+ per year, depending on business size and coverage choices. Comprehensive packages bundling liability, commercial auto, workers’ compensation, and tools/equipment fall toward the higher end.
How to Get Accurate Solar Insurance Quotes
To get precise pricing tailored to your installation business:
Prepare business details: number of employees, payroll, vehicle list, equipment value, past claims.
Decide on coverage types and limits.
Shop multiple quotes — prices can vary significantly.
Work with a specialist agency experienced in solar and contractor insurance.
Get a Solar Installation Insurance Quote With Wexford Insurance
Wexford Insurance specializes in contractor and solar business insurance. They help installers of all sizes compare multiple carriers, find competitive pricing, and ensure that your coverage fits your specific risks.
