What contractor insurance costs, and what actually drives the price.
There is no single price for contractor insurance, because it is built from your trade, payroll, limits, and loss history. What we can do is show the reference ranges by coverage and explain what moves each one, so the quote you get makes sense. These are market references, not a quote.
Want the real number? Get a quote. Want to understand the biggest lever first? See the class codes.
Reference ranges by coverage
These are typical market ranges to set expectations, not quotes. Your number depends on the specifics below and comes from underwriting your operation.
| Coverage | Reference range (annual) | What moves it |
|---|---|---|
| General liability | A few hundred to several thousand dollars for a small contractor; more for high-hazard trades | Trade, revenue, limits, completed-operations exposure, loss history |
| Workers compensation | Priced as a rate per $100 of payroll; single digits for low-hazard trades to $20 or more for roofing | Class code, payroll, experience modifier, state |
| Commercial auto | Roughly $1,500 to $3,500 per vehicle | Number and type of vehicles, driving records, radius, limits |
| Tools and equipment | A few hundred to about a thousand dollars for small tools; more for heavy equipment | Value of gear, theft exposure, on-site and in-transit coverage |
| Commercial umbrella | Often several hundred to over a thousand dollars per $1M of limit | Underlying exposure, trade hazard, limit required by contracts |
| Builders risk | Project-specific, commonly a small percentage of the project's total cost | Project value, construction type, term, location |
Reference ranges only, not quotes or a guarantee of price. Actual premium is determined by underwriting your specific operation and varies by trade, state, payroll, limits, and loss history. Figures are general market observations as of July 2026.
Workers comp is usually the biggest line
For most contractors with employees, workers compensation is the largest single insurance cost, and it is driven almost entirely by class code and payroll. That is why the same revenue can produce very different premiums: a roofing payroll and a clerical payroll are worlds apart in rate. If you want to understand or lower your cost, the class code is where to start. See our contractor class-code reference for how it works.
Why high-hazard trades pay more
Roofing, framing, and excavation carry more injury and completed-work exposure, so both workers compensation rates and general liability pricing run higher, and fewer carriers compete for the work. A specialist market that actually wants your trade will price it more fairly than a carrier taking it reluctantly, which is a large part of what an independent agency does for you.
What actually determines your number
Six things move a contractor's premium more than anything else: your trade and its class code, your payroll and revenue, the limits your contracts require, your loss history and experience modifier, the size and type of your vehicle fleet, and the state you work in. Two of these, class code and loss history, are where accuracy and good records pay off directly. We work all six.
Getting a real number
A reference range tells you the neighborhood. A quote tells you the price. Because contractor pricing varies so much by carrier appetite, the practical move is to shop the program across markets that fit your trade rather than take the first number. We do that, confirm your class codes and limits, and give you a real quote you can build a budget on.
Reviewed for insurance accuracy by Richard Sweet, Vantage Point Risk. Last reviewed July 16, 2026. How we review this.
Common questions.
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Get a real number, not a range
We shop your program across carriers that fit your trade, confirm your class codes and limits, and give you a quote you can budget on.
See what your program actually costs.
Tell us your trade, payroll, and the limits your contracts require and we will shop it and give you a real number.