How Much Does General Contractor Insurance Cost in 2026?
General contractor insurance costs depend on three factors: the type of work, annual revenue, and the state where the work is performed. A painter doing $150,000 a year in Texas pays around $780. A roofer at the same revenue level pays $2,900. Same state, same revenue, very different premium.
Farmer Brown has placed contractor insurance across all 50 states since 1996. The figures below come from actual quoted rates, organized by trade, revenue, and state.
Contractor insurance cost by trade type
Most trades price general liability at 1% of annual revenue. Roofing and framing run higher, between 1.5% and 1.75%, because the claims are more frequent and more expensive. Every trade has a minimum premium that applies regardless of the revenue.
Minimum premiums for contractors under $150,000 in annual revenue
| Contractor type | Annual revenue | Estimated annual premium |
|---|---|---|
| Painter | Under $150,000 | $780 |
| Drywall contractor | Under $150,000 | $780 |
| Handyman | Under $150,000 | $1,200 |
| Electrician | Under $150,000 | $1,300 |
| Plumber | Under $150,000 | $1,300 |
| General contractor | Under $150,000 | $1,500 |
| Roofer | Under $150,000 | $2,900 |
| Framing contractor | Under $150,000 | $3,000 |
Rate on revenue by trade type
| Contractor type | Estimated rate on revenue |
|---|---|
| Painter | 1.00% |
| Drywall contractor | 1.00% |
| Handyman | 1.00% |
| Electrician | 1.00% |
| Plumber | 1.00% |
| General contractor | 1.00% |
| Roofer | 1.50% to 1.75% |
| Framing contractor | 1.50% to 1.75% |
Roofing and framing carry higher rates because falls from height produce serious injuries and the claims that follow are expensive. Everything else runs at 1%.
General contractor insurance costs by state and revenue
State affects premiums through local litigation environments, carrier underwriting rules, and several factors tied to where you work. In Texas, there is no statewide requirement for general liability insurance for contractors, but many cities and municipalities require it for registration or permits. A general contractor doing $350,000 in Georgia pays the same rate as one in California, but minimums and carrier availability vary by state.
| State | Annual revenue | Estimated annual premium |
|---|---|---|
| Texas | $150,000 | $1,500 |
| Illinois | $150,000 | $1,610 |
| Florida | $250,000 | $2,500 |
| Georgia | $350,000 | $3,500 |
| California | $500,000 | $5,000 |
| North Carolina | $750,000 | $7,500 |
| Tennessee | $1,000,000 | $10,000 |
Texas contractors buying through Insureon pay an average of $152 per month for general liability insurance.
Figures reflect standard GL coverage at 1% of revenue with a clean claims history.
Roofing contractor insurance costs by state and revenue
Roofing is the most expensive trade to insure. The rate ranges from 1.5% to 1.75% of annual revenue, with a minimum of $2,900. A roofer doing $80,000 in revenue still pays $2,900 because the carrier’s exposure on a roofing job does not scale down with the size of the operation.
| State | Annual revenue | Estimated annual premium |
|---|---|---|
| Texas | $80,000 | $2,900 |
| Florida | $150,000 | $3,000 |
| Georgia | $250,000 | $3,750 |
| Arizona | $500,000 | $7,500 |
| Colorado | $1,000,000 | $15,000 |
| Tennessee | $2,000,000 | $30,000 |
A roofer doing $2 million in Tennessee pays $30,000 per year in GL premium. That is 1.5% of revenue and one of the larger fixed costs in the business at that revenue level.
Framing contractor insurance cost by state and revenue
Framing runs the same rate tier as roofing at 1.5% to 1.75% of annual revenue with a $3,000 minimum. Structural work at height carries similar exposure in the eyes of carriers.
| State | Annual revenue | Estimated annual premium |
|---|---|---|
| Texas | $80,000 | $2,920 |
| Florida | $150,000 | $3,000 |
| North Carolina | $250,000 | $3,750 |
| Georgia | $500,000 | $7,500 |
| Tennessee | $1,000,000 | $15,000 |
Painter insurance cost by state and revenue
Painting is one of the lowest-cost trades to insure. The $780 minimum and 1% rate make it accessible even for small operations. A painter in North Carolina doing $1 million pays $10,000 annually, roughly what a roofer doing $650,000 pays.
| State | Annual revenue | Estimated annual premium |
|---|---|---|
| Kentucky | $80,000 | $720 |
| Texas | $150,000 | $780 |
| Florida | $250,000 | $2,500 |
| Georgia | $500,000 | $5,000 |
| North Carolina | $1,000,000 | $10,000 |
Electrician insurance costs by state and revenue
Electricians start at $1,300 for operations with annual revenue under $150,000. Both Texas and Florida hit the minimum at lower revenue levels before the percentage takes over at higher revenue.
| State | Annual revenue | Estimated annual premium |
|---|---|---|
| Texas | $80,000 | $1,300 |
| Florida | $150,000 | $1,300 |
| Georgia | $250,000 | $2,500 |
| California | $500,000 | $5,000 |
| Tennessee | $1,000,000 | $10,000 |
Plumber insurance cost by state and revenue
Plumber rates mirror electrician pricing. The $1,300 minimum applies in most states, and the 1% rate applies from $150,000 of revenue onward.
| State | Annual revenue | Estimated annual premium |
|---|---|---|
| Texas | $80,000 | $1,300 |
| Florida | $150,000 | $1,300 |
| Georgia | $250,000 | $2,500 |
| Arizona | $500,000 | $5,000 |
| Tennessee | $1,000,000 | $10,000 |
Quick reference: construction insurance cost at 1% rate by revenue
For most trades except roofing and framing, this table provides a quick estimate of the annual GL premium based on revenue.
| Annual revenue | Estimated annual premium (1% rate) |
|---|---|
| $100,000 | $1,000 |
| $250,000 | $2,500 |
| $500,000 | $5,000 |
| $1,000,000 | $10,000 |
| $2,000,000 | $20,000 |
Roofing and framing contractors multiply by 1.5% to 1.75% instead.
Risk factors that increase contractor insurance premiums
The figures above apply to standard operations with clean claims histories. Certain types of work push carriers to rate above the baseline.
| Risk factor | Impact on premium |
|---|---|
| Roofing operations | High increase |
| Framing operations | High increase |
| Working above 3 stories | High increase |
| Hotels and hospital projects | Moderate to high increase |
| Condominium projects | Moderate increase |
| Townhome construction | Moderate increase |
| Large commercial projects | Moderate increase |
| Extensive subcontracting | Moderate increase |
| High payroll | Moderate increase |
| High revenue | Moderate increase |
Working above three stories is rated separately from trade type. A general contractor whose projects regularly involve multi-story work pays more than the base 1% rate regardless of what trade classification the policy carries.
Condominium and townhome construction gets rated up because shared-structure liability means multiple owners can be involved in a single claim. One defect, multiple plaintiffs.
Extensive subcontracting raises premiums when subcontractors cannot provide current certificates of insurance. Carriers treat uninsured subcontractor payroll as the general contractor’s own payroll during audits. Collecting certificates from every sub before work starts keeps that cost where it belongs.
What general liability insurance covers for construction businesses
General liability is the core business liability insurance policy for many small business owners in construction. This general liability insurance is essential for permits, contracts, and client confidence. It explains how liability insurance protects against third-party claims tied to normal operations when people outside the company are injured or their property is damaged. The exact insurance coverage and liability coverage available are defined in the insurance policy and policy contract, so contractors should review both carefully.
Bodily injury claims on construction projects
Bodily injury coverage pays when someone outside the company is physically injured by the contractor’s work. Medical bills, medical expenses, lost wages, and legal costs are all included. A visitor, a neighboring property owner, or a passerby can generate a bodily injury claim. The contractor does not have to be directly responsible. Being named on the project is often enough to end up in a lawsuit, and this part of the liability insurance policy can also include medical payments for minor third-party injuries regardless of fault.
Property damage caused by your operations
If a contractor or their crew damages someone else’s property during operations, the GL policy pays for repairs or replacement. Flooding a client’s basement, breaking a neighboring structure during demolition, damaging a fence during site prep. These are property damage claims. The policy does not cover damage to the contractor’s own work, tools, or materials, and those claims can also lead to repair costs, legal fees, and other financial losses.
Advertising injury and personal injury coverage
Advertising injury covers claims that the contractor’s marketing caused harm to another party and is often called personal and advertising injury, including issues like libel, slander, or false advertising. Copyright infringement in a project portfolio, defamatory statements about a competitor, and privacy violations all fall under this category. Less common on job sites than bodily injury, but included in most standard GL policies and worth knowing about.
Other business insurance general contractors need
General liability is the starting point, not a complete insurance program.
Depending on the work they do, contractors may also need workers comp, commercial auto, and builder’s risk insurance.
Additional coverage, such as excess liability insurance, adds protection when primary limits are exhausted.
The right coverage depends on the specific business and its unique risks.
Commercial auto insurance for contractors
A personal auto policy excludes vehicles used for business. Any truck, van, or car used to haul materials, transport tools, or travel between job sites needs a commercial auto policy. One at-fault accident in a business vehicle without commercial coverage means paying medical bills, repairs, and legal costs out of pocket.
Commercial auto for contractors typically runs $1,200 to $3,000 per vehicle annually, depending on vehicle type, driver records, and state.
Commercial property insurance for contractor offices and equipment
Commercial property coverage protects the contractor’s physical business assets at a fixed location, such as office space, computers, furniture, and stored equipment. Tools, materials, and other business equipment used in the field are usually covered by inland marine insurance. Builder’s risk insurance covers structures in progress and materials against fire, vandalism, and non-severe weather events during construction.
Eligible small business contractors often save with a business owner’s policy, which combines general liability coverage with commercial property coverage at a lower combined cost than buying them separately and is usually available outside the highest-risk trades.
Workers compensation for contractors with employees
General liability does not cover employee injuries. Workers compensation is a separate requirement in most states and helps cover medical costs, along with lost wages, when an employee is hurt on the job. In Texas, it is generally recommended even when private employers are not required statewide to carry it, especially for public work or hazardous occupations. A general contractor with any W-2 employees needs it. The size of the employee crew directly affects workers compensation cost, which often runs about $80 to $340+ per month per worker. A general contractor relying entirely on subcontractors still needs to verify that every sub carries its own workers’ compensation policy, because an uninsured subcontractor’s injury can become the general contractor’s liability.
Frequently asked questions about general contractor insurance cost
Why does a roofer pay so much more than a painter?
Carriers price by trade based on the historical frequency and average cost of claims. Roofing generates more claims and those claims are larger because falls from height produce serious injuries. A painter working at ground level has a fundamentally different risk profile.
Does the 1% rate apply to gross or net revenue?
GL premiums calculate on gross revenue. The full amount of work billed, including subcontracted work, factors into the calculation unless subcontractors have current certificates of insurance on file documenting their own coverage.
What happens at renewal if revenue came in higher than estimated?
Carriers audit payroll and revenue at renewal. If actual figures were higher than the estimate used at inception, an additional premium is due. Reporting accurate revenue upfront avoids a large audit bill at year end.
Can a general contractor reduce premium by subcontracting more work?
Not directly. The base premium still calculates on total revenue. The insurance benefit of properly insured subcontractors is that their liability stays on their policy, not yours, when their work causes a claim.
Does GL insurance cover work after a project is completed?
Most GL policies include products-completed operations coverage, which covers claims that come up after a project is finished. Confirm it is included before binding and that the limit is adequate for the type of work being done. GL usually does not cover pollution claims, so contractors pollution liability may be needed for costs related to hazardous-material exposure on a job site, including lawsuits alleging harm caused by that exposure.
How quickly can contractor insurance be bound?
Farmer Brown provides same-day quotes and same-day binding for most contractor trades across all 50 states, and many providers let you start a general liability insurance quote online by entering your business details to compare multiple carriers. A certificate of insurance is often issued quickly after binding, with instant access to proof of coverage, and project owners may ask to be added as an additional insured. Municipalities may also require surety bonds, which guarantee that the contractor will fulfill contract terms and differ from insurance claims.
Getting contractor insurance priced
Before requesting a contractor general liability insurance quote, gather key business details such as the type of work you do, the number of employees, and any professional services or other coverage needs. Farmer Brown has had contractor GL coverage since 1996. Quotes are available online for all major trades. Comparing multiple carriers helps you find the right coverage because rates vary by insurer and business profile.