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Guide to General Contractors Insurance
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Roofing Contractor Insurance
First, a clarification worth making: when homeowners search for roofing insurance, they are usually looking at their homeowners policy. That policy covers storm damage, fallen trees, and other sudden losses to the roof itself. What this guide covers is different. Roofing contractor insurance is the business liability coverage a roofing company carries to protect itself from what goes wrong on the job.
Roofing is the highest-risk trade most carriers write. The claim scenarios are obvious: a worker falls, a shingle damages a car below, a new roof fails and the homeowner files a completed-work claim two years later. General Liability handles all of these. It also covers defense costs if someone sues you, which in some cases ends up costing more than the claim itself.
Farmer Brown has been writing roofing policies since 1996, working with Nationwide, Zurich, The Hartford, Travelers, and Liberty Mutual. Most policies issue same day.
What the policy actually covers
- Third-party bodily injury. Someone gets hit by falling debris. Someone trips over equipment left on a sidewalk. The GL policy pays medical costs and legal defense if it goes to court.
- Property damage to third parties. A ladder goes through a client's window. A crew member backs a truck into a fence. Covered.
- Completed work claims. The job is done and signed off, then six months later the homeowner says the flashing was wrong and there is water damage inside. This is one of the most common claim types in roofing and one of the most expensive.
- Defense costs. Attorney fees, expert witnesses, court costs. These add up fast even when you win.
- Advertising injury. Less common, but if a copyright claim or defamation suit is filed against your business, the policy responds.
General Liability does not cover injuries to your own employees on the job. Workers Compensation handles that, and 49 states require it by law.
What roofing insurance costs
Plan on around 1% of annual revenue. That is the realistic ballpark for a roofing company with a clean claims history. A business doing $300,000 in revenue pays roughly $3,000 per year.
The standard policy is $1,000,000 per occurrence with a $2,000,000 annual aggregate. Some clients will ask for proof of $1 million in coverage before letting you on a job. Going with a $500,000 limit saves less than $100 per year. It is not worth the tradeoff.
Where you operate matters as much as your revenue. A roofing company in Texas pays significantly less than one doing the same volume in California. New businesses pay more than established ones with clean records. A crew of 12 costs more to insure than a crew of 3. And if you have had claims in the past five years, expect those to follow you.
Roofing Insurance Cost by City
Estimated annual GL premiums below are for a standard $1M/$2M policy. The minimum applies to operations under $150,000 in annual revenue.
New York City, NY
New York City, NY
New York has some of the highest contractor insurance costs on the East Coast. Dense urban job sites, high litigation frequency, and above-average labor costs all push premiums up. Roofing in particular runs expensive given the volume of high-rise and flat-roof work common in the five boroughs.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $3,200 minimum | $3,250 - $4,900 | $4,900 - $9,700 | $9,700 - $49,000 |
Los Angeles, CA
Los Angeles, CA
California’s legal and regulatory environment makes it one of the most expensive states for contractor coverage. Workers comp rates alone are a significant driver. Roofing and GC premiums in LA run well above the national average and carriers price accordingly.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $3,100 minimum | $3,150 - $4,700 | $4,700 - $9,400 | $9,400 - $47,000 |
Chicago, IL
Chicago, IL
Illinois sits in the mid-tier nationally. Chicago contractors pay noticeably more than downstate peers due to urban job site density and claim frequency, though costs are still a step below coastal markets. Union requirements on larger jobs can also affect overall risk profiles.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $2,900 minimum | $2,950 - $4,400 | $4,400 - $8,800 | $8,800 - $44,000 |
Houston, TX
Houston, TX
Houston benefits from Texas’s business-friendly insurance environment. Fewer state-level mandates and a competitive carrier market keep premiums well below coastal averages. Storm season factors into roofing specifically, though overall costs stay affordable.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $2,800 minimum | $2,850 - $4,150 | $4,150 - $8,300 | $8,300 - $41,500 |
Phoenix, AZ
Phoenix, AZ
Arizona is a moderate-cost market with a large residential construction base. Phoenix’s construction growth has brought multiple carriers into competition, which helps keep rates in check. Roofing premiums are reasonable given the predominantly low-slope residential work that dominates the market.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $2,850 minimum | $2,900 - $4,250 | $4,250 - $8,500 | $8,500 - $42,500 |
San Antonio, TX
San Antonio, TX
San Antonio is home to Farmer Brown Insurance and a market the team has covered for nearly 30 years. Texas rates are among the most competitive in the country. Both roofing and GC contractors here typically land at the lower end of the national range.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $2,800 minimum | $2,820 - $4,050 | $4,050 - $8,100 | $8,100 - $40,500 |
Philadelphia, PA
Philadelphia, PA
Philadelphia sits above the Pennsylvania average due to higher urban claim frequency and a strong union presence on larger commercial projects. Roofing in the city involves a mix of steep residential and flat commercial work, which carriers treat differently when setting rates.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $2,950 minimum | $3,000 - $4,450 | $4,450 - $8,900 | $8,900 - $44,500 |
San Diego, CA
San Diego, CA
San Diego is subject to California’s state-level insurance environment but sees slightly lower rates than Los Angeles due to lower urban claim density. It remains one of the more expensive markets for contractor insurance nationally, and carriers apply California’s regulatory overhead across the board.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $3,050 minimum | $3,100 - $4,600 | $4,600 - $9,200 | $9,200 - $46,000 |
Dallas, TX
Dallas, TX
Dallas is one of the fastest-growing construction markets in the country and runs on Texas’s favorable insurance rules. Roofing demand spikes after hail seasons, but base premiums stay competitive. General contractor rates here are among the lowest of any major metro in the country.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $2,800 minimum | $2,840 - $4,100 | $4,100 - $8,200 | $8,200 - $41,000 |
Fort Worth, TX
Fort Worth, TX
Fort Worth shares the DFW metro’s construction growth and Texas’s low-cost insurance environment. Residential roofing is the dominant work type, and GC activity has picked up significantly with commercial development moving west of Dallas. Both trades price out at the lower end nationally.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (Roofing) | $2,800 minimum | $2,830 - $4,050 | $4,050 - $8,100 | $8,100 - $40,500 |
General Contractors Insurance
A general contractor carries liability for everyone on the job, not just their own crew. If a subcontractor causes property damage and is uninsured, the lawsuit lands on the GC. If a visitor is injured on site during a phase managed by a sub, the GC is typically named in the claim. The exposure is wider than most contractors realize until something goes wrong.
What the policy actually covers
- Third-party bodily injury. A visitor trips over a pile of materials. A passerby is hit by something that fell from the building. Medical costs and legal defense are covered.
- Property damage. Accidental damage to a neighbor's structure, a parked vehicle, or any third-party property during the course of work.
- Completed work claims. A client files a claim a year after the project closed, saying defective work caused damage. This is covered under the products and completed operations portion of the GL policy.
- Advertising injury. Copyright infringement claims, defamation suits, things contractors do not usually think about until they happen.
- Medical payments. Minor injuries on the job site get immediate coverage without the claim having to go through litigation first. Most carriers see this as a way to prevent small incidents from becoming lawsuits.
Always collect Certificates of Insurance from every subcontractor before work begins. If a sub has no coverage and causes damage, that claim comes to you.
Subcontractors and additional insured status
There are two ways a sub gets liability coverage on your job. You add them to your own policy as an additional insured, which costs you more and chips away at your aggregate limit. Or they carry their own GL policy and hand you a certificate before stepping on site.
Most GCs with any experience require the second option. Having a sub under your own policy sounds convenient until you realize a $200,000 subcontractor claim now counts against your $2,000,000 annual aggregate. Their own policy keeps that separate. It also gives you something to point to if a dispute arises about who was responsible.
Independent contractors sign up for their own coverage separately. Requiring proof before work starts is not just good practice, it is how most commercial contracts are written.
What general contractor insurance costs
GC premiums run around 0.75% of annual revenue. A GC doing $500,000 in revenue typically pays $3,750 to $4,500 per year for a $1M/$2M GL policy. The minimum for smaller operations starts at $1,600.
Interior finish work is cheaper to insure than structural or exterior work. A GC who manages roofing and framing subs pays more than one whose scope is limited to interior remodels. State is a major factor too. Texas is consistently one of the cheapest markets for GC insurance. California is among the most expensive, largely because of litigation exposure and workers comp requirements that filter into carrier pricing.
Claims history is where contractors often underestimate the long-term cost. One claim can push premiums up for three to five years. A clean record for that same period typically earns a discount.
General Contractors Insurance Cost by City
Estimated annual GL premiums below are for a standard $1M/$2M policy. The minimum applies to operations under $150,000 in annual revenue.
New York City, NY
New York City, NY
New York has some of the highest contractor insurance costs on the East Coast. Dense urban job sites, high litigation frequency, and above-average labor costs all push premiums up. Roofing in particular runs expensive given the volume of high-rise and flat-roof work common in the five boroughs.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,850 minimum | $1,900 - $3,650 | $3,650 - $7,300 | $7,300 - $36,500 |
Los Angeles, CA
Los Angeles, CA
California’s legal and regulatory environment makes it one of the most expensive states for contractor coverage. Workers comp rates alone are a significant driver. Roofing and GC premiums in LA run well above the national average and carriers price accordingly.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,800 minimum | $1,850 - $3,550 | $3,550 - $7,100 | $7,100 - $35,500 |
Chicago, IL
Chicago, IL
Illinois sits in the mid-tier nationally. Chicago contractors pay noticeably more than downstate peers due to urban job site density and claim frequency, though costs are still a step below coastal markets. Union requirements on larger jobs can also affect overall risk profiles.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,700 minimum | $1,750 - $3,400 | $3,400 - $6,850 | $6,850 - $34,000 |
Houston, TX
Houston, TX
Houston benefits from Texas’s business-friendly insurance environment. Fewer state-level mandates and a competitive carrier market keep premiums well below coastal averages. Storm season factors into roofing specifically, though overall costs stay affordable.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,600 minimum | $1,650 - $3,200 | $3,200 - $6,450 | $6,450 - $32,200 |
Phoenix, AZ
Phoenix, AZ
Arizona is a moderate-cost market with a large residential construction base. Phoenix’s construction growth has brought multiple carriers into competition, which helps keep rates in check. Roofing premiums are reasonable given the predominantly low-slope residential work that dominates the market.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,650 minimum | $1,680 - $3,280 | $3,280 - $6,550 | $6,550 - $32,750 |
San Antonio, TX
San Antonio, TX
San Antonio is home to Farmer Brown Insurance and a market the team has covered for nearly 30 years. Texas rates are among the most competitive in the country. Both roofing and GC contractors here typically land at the lower end of the national range.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,600 minimum | $1,620 - $3,120 | $3,120 - $6,250 | $6,250 - $31,200 |
Philadelphia, PA
Philadelphia, PA
Philadelphia sits above the Pennsylvania average due to higher urban claim frequency and a strong union presence on larger commercial projects. Roofing in the city involves a mix of steep residential and flat commercial work, which carriers treat differently when setting rates.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,700 minimum | $1,740 - $3,380 | $3,380 - $6,750 | $6,750 - $33,800 |
San Diego, CA
San Diego, CA
San Diego is subject to California’s state-level insurance environment but sees slightly lower rates than Los Angeles due to lower urban claim density. It remains one of the more expensive markets for contractor insurance nationally, and carriers apply California’s regulatory overhead across the board.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,750 minimum | $1,790 - $3,500 | $3,500 - $7,000 | $7,000 - $35,000 |
Dallas, TX
Dallas, TX
Dallas is one of the fastest-growing construction markets in the country and runs on Texas’s favorable insurance rules. Roofing demand spikes after hail seasons, but base premiums stay competitive. General contractor rates here are among the lowest of any major metro in the country.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,600 minimum | $1,630 - $3,150 | $3,150 - $6,300 | $6,300 - $31,500 |
Fort Worth, TX
Fort Worth, TX
Fort Worth shares the DFW metro’s construction growth and Texas’s low-cost insurance environment. Residential roofing is the dominant work type, and GC activity has picked up significantly with commercial development moving west of Dallas. Both trades price out at the lower end nationally.
| Annual Revenue | Under $150K | $150K - $500K | $500K - $1M | $1M - $5M |
|---|---|---|---|---|
| Est. Annual Premium (GC) | $1,600 minimum | $1,610 - $3,100 | $3,100 - $6,200 | $6,200 - $31,000 |
Other Coverage Contractors Need
Workers Compensation Insurance
Workers Comp is required in 49 states. Texas is the exception, but Texas contractors who skip it have no immunity from lawsuits if an employee is injured, so most carry it anyway.
The policy pays medical bills and lost wages when an employee is hurt on the job. Serious injuries that result in permanent disability are also covered. Premiums are calculated per $100 of payroll, not revenue, and the rate depends on job classification. Roofing is one of the most expensive classes in the country. A California roofer can cost $30 or more per $100 of payroll. The same classification in Texas runs around $13.
The experience modification factor is what separates contractors who manage their safety programs from those who do not. The NCCI assigns each business an EM number based on their actual claims history compared to others in the same trade. An EM of 1.0 is average. A contractor with an EM of 0.75 pays 25% less than base rate. One with an EM of 1.25 pays 25% more. On $100,000 in payroll at a $20 rate, that gap is $10,000 per year. Over five years it is $50,000.
Independent contractors are not covered under your Workers Comp policy. Get a certificate of insurance from every sub before they start work. Payments to uninsured subs can be added to your auditable payroll, which means a larger bill at year-end audit.
Commercial Auto Insurance
Personal auto policies do not cover business use. That is not a technicality. If your employee is in an accident driving to a job site in a company truck and the policy is personal, the carrier can and often will deny the claim.
Commercial auto typically runs around $1,200 per vehicle per year for a standard pickup or van. Larger vehicles cost more. A dump truck can hit $4,000 or higher depending on usage and driver history. Bad driving records, multiple vehicles crossing state lines, and high-value equipment being hauled all push costs up.
Whatever is in the truck is not covered by the auto policy. Tools, materials, and equipment in transit need their own coverage under an Inland Marine policy.
Inland Marine Insurance
The name is confusing but the concept is not. Inland Marine covers your tools and equipment while they are being transported or stored at a job site. Commercial auto covers the vehicle. Inland Marine covers what is inside it, and what is left at the job overnight.
Most small contractors pay around $800 a year. The rate depends on the total value of what you are insuring and your loss history. If a $40,000 compressor gets stolen from a job site or your truck gets broken into and the tools are gone, this is the policy that replaces them. Without it, you are paying out of pocket and possibly losing the ability to finish the job.
Umbrella Insurance
An umbrella policy sits above your GL, auto, and Workers Comp limits. If a claim exceeds what the primary policy will pay, the umbrella picks up the rest.
On large commercial jobs this is not optional coverage. A structural failure, a serious injury on a high-rise job site, a fire that starts from work being done and spreads through a building. These are not hypothetical. Contractors have gone out of business over claims that exceeded a $2,000,000 aggregate. An umbrella policy costs a fraction of what one bad claim can cost.
Surety Bonds
A surety bond is not insurance. It is a guarantee to the municipality or project owner that you will complete the work according to the contract. Most permit-issuing municipalities require a bond before they will issue a permit, and the requirement typically runs between $5,000 and $25,000. The $10,000 bond is the most common.
The cost is usually $100 for most trades, though California and Washington run higher. Contractors with good credit, defined as a score above 700 and no bankruptcy in the past seven years, can typically get bonded the same day. One bond does not cover multiple municipalities. Each city or county needs its own.
How Farmer Brown Handles Coverage
Farmer Brown has been at this since 1996. The company writes coverage in all 50 states, works with A-rated carriers only, and handles everything in English and Spanish.
Same-day certificates are the standard, not the exception. Quotes are available instantly at farmerbrown.com. For contractors who want to talk through what they actually need before committing, a 15-minute call with an agent is available at no cost.
This guide is general educational information. Coverage terms, exclusions, and pricing vary by state, policy, and individual business. Talk to a Farmer Brown agent about your specific situation.