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General Contractor Insurance: Cost & Quotes From $13/month

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

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Accidents can happen in the construction site that result in the bodily injuries or property damage of third parties and employees. Materials and equipment can also get lost or damaged. 

Given the risk you are exposed to, you ought to invest in general contractor insurance, which comes in two types. This protects your business from potential lawsuits and other claims. Contractors taking on commercial builds need commercial general contractor insurance, while those involved in residential projects will require residential general contractor insurance.

It might even be hard to bid for contracts if you don’t have adequate general contractor insurance coverage. So by getting insured, you are also helping your business grow. Read this guide to know:

  • How much general contractors pay for insurance

  • The function of each kind of general contractor insurance policy

  • Where to get the best coverage as a general contractor

General Contractor Insurance Cost 

Here’s a table that shows the cost of insurance policies that most general contractors purchase. 


Cost per MonthCost per YearDeductible
General liability insurance$50$600$0-$500
Errors and omissions insurance$70$840$500-$1,000
Workers compensation insurance$92$1,104$2,000-$5,000
Commercial property insurance$55$660$1,000-$2,000
Commercial auto insurance$65$780$500-$1,500


General contractor insurance cost $50 per month or $600 per year for a $1 million general liability policy. This estimate of the cost of general liability insurance for general contractors assumes that you have 5 employees and make $500,000-$750,000 revenue per year. Get cheap general contractor insurance by:

  • Having high deductibles

  • Bundling two or more insurance policies

  • Removing floaters if they’re useless

  • Comparing quotes 

  • Avail commercial auto discounts for safe driving

 

Another way to determine the average cost for general contractor insurance is to take a look at how much insurance companies charge. Here’s a table showing the rates of the recommended general contractor insurance companies:


Cost per MonthCost per YearBest for
NEXT$42$504Best overall; Fastest general liability insurance for general contractors
Tivly$42$504Comparing general contractor insurance quotes over the phone
CoverWallet$44$528General contractor insurance quotes comparison online
Thimble$48$576Short-term general liability insurance for general contractors
State Farm$50$600Commercial umbrella insurance for general contractors
GEICO$52$624Commercial auto discounts
Progressive$55$660General contractors that need help with commercial auto state filings
Travelers$56$672Stand-alone and highly specialized insurance programs for general contractors

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General Contractor General Liability Insurance


CoverWalletNEXT (Best)Thimble
Per occurrence limit$1,000,000$1,000,000$1,000,000/$2,000,000
Aggregate limit$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit
$2,000,000
$1,000,000$1,000,000
Advertising injury coverage aggregate limit$1,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit
$1,000,000
$100,000$5,000
Waiver of subrogation included?YesNoIncluded
Hired/non-owned auto liability coverage included?YesNoExcluded
Equipment breakdown floater included?NoYesYes
Can you get a certificate of insurance online?YesYesYes
Name additional insureds?YesYes
Yes
Deductible$0$0$0


Similar to paving contractors, plastering contractors, and flooring contractors, you also need general liability insurance. General liability for general contractors grants a shield against the financial punches due to third-party property damage, bodily injury, and legal action. Use the table above to compare the quotes of general liability insurance for general contractors.

About 98% of general contractors get general liability insurance. Here are some example situations where your general contractor liability insurance coverage becomes useful:

  • A dump truck runs over someone while it’s exiting the construction site

  • An inspector falls from a height while checking the structures of the site

  • An independent contractor gets electrocuted while installing lighting and wiring for your construction project

  • Representatives of your client slip and fall on the premises of the construction site during a tour


So how does general liability insurance work? A general contractor’s liability insurance takes care of these costs if a claim for bodily injury or property damage is filed:

  • Medical treatments

  • Reimbursements for property damage

  • Settlements

  • Defense costs

  • Court judgments


Note that most insurance providers underwrite general contractor general liability insurance comprehensively. Aside from bodily injuries or property damage, the policy can also cover these exposures:

  • Loss or damage of a client’s property under your care, custody, and control

  • Bodily injuries or property damage because of defective work (product liability claims)

  • Fire and water damage to a landlord’s property

  • Claims for slander, libel, and copyright infringement


Errors And Omissions Insurance For General Contractors


CoverWallet (Best)NEXTThimble
Per occurrence limit$1,000,000$300,000/$1,000,000$1,000,000/$2,000,000
Aggregate limit$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000
Name additional insureds?YesYesYes
Waiver of subrogation included?YesNoNo
Deductible$500$500$500


All clients can sue and hold you liable for negligence, mistakes, and omissions. You can also be responsible if these are committed by EIFS contractors and other contractors you hired.

Claims filed because there are issues with your services aren’t covered by general liability insurance. And so, you must get another general contractor insurance coverage-errors and omissions insurance.

Use the table above to compare the quotes of errors and omissions insurance of carriers that sell general contractor insurance online.

Errors and omissions insurance for general contractors takes care of costs if a client files a claim because you:

  • Inflated the cost of construction materials and your services

  • Failed to perform a particular task mentioned in the contract

  • Left the project unfinished in order to cater to more important projects

  • Hired the wrong subcontractors for the job


You have two options for errors and omission insurance-claims made or occurrence. Go for the second because it provides lifetime coverage.

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Commercial Property Insurance For General Contractors 


CoverWalletNEXT (Best)Thimble
Building coverage limit (minimum)$50,000$310,000$25,000/$500,000
Contents coverage limit (minimum)$50,000$31,000$25,000/$500,000
Outdoor signsExcluded$2,500Excluded
Accounts receivable ExcludedExcluded$5,000/10,000
Money and securitiesExcluded$2,500$1,000
Lock and keys Excluded$2,500Excluded
Business interruption floaterExcludedIncludedIncluded
Equipment breakdown floaterExcludedIncludedExcluded
Inland marine insurance floaterExcludedExcluded$10,000
Employee dishonesty floaterExcluded$5,000$2,500


Your office and warehouse can get damaged or destroyed.  

Commercial property insurance recovers losses quickly without any interruptions. Use the table above to compare the quotes of commercial property policy from some of the best insurance companies for general contractors. 

79% of general contractors get commercial property insurance. This reimburses your financial losses if the office or warehouse gets damaged or destroyed by:

  • Fire

  • Theft

  • Vandalism

  • Civil commotion

  • Riot

  • Sinkhole collapse

  • Volcanic action

  • Lightning

  • Winds

  • Snow

  • Hail

  • Rain

  • Falling objects

  • Aircraft

  • Vehicle

  • Impact


The coverage of commercial property insurance for general contractors, plumbing contractors, and door installation contractors also applies to what’s inside the building too. And so, this insurance will also reimburse the value of equipment, materials, and other valuables that got damaged or lost while in the warehouse or office due to fire, theft, vandalism, and other perils we mentioned above. 

Similar to general liability insurance, commercial property insurance comes with add-ons. Additional coverages you’ll find included it are:

  • Equipment breakdown floater

  • Business interruption floater

  • Inland marine floater


Tools And Equipment Insurance For General Contractors


NEXT (Best)ThimbleTravelers 
Aggregate limit$5,000/$10,000$1,000/$5,000$15,000/$25,000
Offered as an endorsement to general liability insurance?YesYesNo
Covers hired and borrowed equipment?YesYesNo
Miscellaneous equipment also covered?YesNoNo
Deductible$500$500$1,000


Tools and equipment insurance solely covers the equipment you use as a general contractor as well as the personal implements of employees. 

This is sold as a stand-alone policy or as an optional coverage in general liability insurance. Use the table above to compare the quotes of tools and equipment insurance for general contractors. 

Tools and equipment insurance for general contractors, electrical contractors, and masonry contractors covers the repair or replacement costs of drills, hammers, ladders, portable lights, lifters, and other tools and equipment that get damaged or lost because of:

  • Fire

  • Theft

  • Vandalism

  • Impact

  • Explosions

  • Operator error

  • Water

  • Mysterious disappearance


Commercial Auto Insurance For General Contractors


NEXT (Best)ProgressiveGEICO 
Auto liability bodily injury coverage aggregate limit (minimum)$25,000 per injury$50,000 per accident$25,000 per injury$50,000 per accident$100,000/$300,000 CSL
Auto liability property damage aggregate limit (minimum) $15,000$15,000$50,000
Uninsured/underinsured motorist coverage limit $25,000 per injury $50,000 per accident$25,000 per injury $50,000 per accident$100,000/$300,000
Rental reimbursement coverage aggregate limit$1,500$1,500$900
Trailers can be added to commercial auto insurance?YesYesYes
Roadside assistance coverage included YesYesNo
Safe driving discounts included?YesYesYes


Commercial auto insurance is important if you’re a general contractor who owns or hires flatbed trucks, dump trucks, and other vehicles to haul materials, transport debris, and take employees to different project locations. 

Use the table above to compare the quotes of commercial auto insurance for general contractors. 

You need commercial auto insurance for general contractors, fence installation contractors, and roofing contractors in case something happens to the vehicles you use for business operations. Here’s a summary of this insurance policy’s main functions:

  • Cover the medical treatment or property damage of third parties who get involved in an accident caused by your commercial vehicle

  • Pay for parts repair or replacement if your commercial vehicle gets damaged because of a collision, fire, theft, vandalism, or weather

  • Cover the medical treatment of your commercial vehicle’s passenger or driver in case of accidents caused by an underinsured/uninsured motorist


General Contractor Workers Compensation Insurance 

If you hire additional help or specialized skills to help with the completion of a project, a sound risk management practice you should have in place is general contractor workers' compensation insurance. 

Other than protecting your business from the cost of employee claims for a workplace injury or illness, get this policy because it’s a requirement in most states. Failure to get general contractor workers comp insurance will result in hefty fines and penalties.  

About 100% of general contractors purchase workers compensation insurance. 

Workers' compensation insurance kicks in when a full-time or part-time employee sustains an occupational disease or injury. It will take care of these costs on your behalf:

  • Lost wages 

  • Death benefits

  • Medical bills arising from accidents on-site or in the workplace 

  • Retraining and rehabilitation

  • Medication

  • Hospitalization


Note that workers' compensation for general contractors doesn’t apply to sub-contractors you hire for carpentry or drywall work. 


General Contractor Umbrella Insurance 

Construction work carries a variety of inherent risks that you can never thoroughly plan for or financially protect yourself against. Fortunately, you can purchase general contractor umbrella insurance. 

This general contractor business insurance provides you with an additional layer of coverage beyond the policy limits of your general contractor liability policies. 

This means that if your business was to cause damages that exceed the limits of your commercial general liability policy, commercial auto, or errors and omissions policy, the umbrella policy for general contractors, concrete contractors, and siding installation contractors caters to the excess. 


General Contractor Insurance And Bond 

Aside from the insurance policies we mentioned above, you might also need to get certain types of bonds.

This is because some clients might require you to get both general contractor insurance and bond for high-profile projects. 

The most useful types of general contractor bond insurance are surety and fidelity bonds.  A surety bond indemnifies the losses of a client in case you can’t finish or fail to finish a project. On the other hand, a fidelity bond reimburses the losses if your employee commits a crime. 

General contractor bonded and insured find it easier to bid and close projects. There are also lesser problems with getting a license to commence projects. 

Compare General Contractor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best General Contractor Insurance Companies 

These are the best general contractor insurance companies. Read to know their pros, cons, and pricing for a $1 million general liability insurance. 


NEXT Insurance General Contractor 

Pros 

  • Best overall

  • Get an online proof of insurance and send as a text message, email, or social media post

  • Fastest general liability insurance for general contractors 

  • Great customer service and reputation

  • Issues an online proof of insurance instantly

  • Outstanding value for money

  • Bundle two or more insurance policies and get a 10% discount

 

Cons

  • Couldn’t find any 

NEXT is a one-stop shop for small general contracting businesses looking for:

  • Commercial auto coverage 

  • General liability coverage 

  • Tools and equipment policy 

  • Workers' compensation 

  • Commercial property coverage 

All of the policies above are offered in NEXT’s deluxe general contractor insurance program.  You get comprehensive coverage and a 10% discount by bundling different insurance policies. 

On the other hand, if you don’t want to spend much on premiums, then NEXT also offers a basic coverage. The basic coverage only offers a general liability and errors and omissions insurance with a $1 million per occurrence and aggregate limit.

Note that your general contractor insurance from NEXT is offered in partnership with Tivly. Therefore, the general contractor general liability insurance cost of both companies is the same.

Best for: Best overall; Fastest general liability insurance for general contractors 

Average cost: $42 per month 

Our rating: 9/10 


CoverWallet General Contractor Insurance

Pros

  • Easy online policy management

  • Compare general contractor insurance quotes online

  • Cancel a policy anytime with no charges 

  • Rented/hired auto liability coverage included in general liability insurance

Cons

  • Not an insurance company but an insurance broker 

CoverWallet is an insurance broker that sells the general liability insurance, commercial auto, workers' compensation, commercial property, and other business insurance policies of its partners for general contractors.

To get covered, you use CoverWallet’s online quotes comparison tool which shows the rates and features of numerous insurance options. You can then decide to get covered online or talk with an agent over the phone. 

Your general liability insurance from CoverWallet has a $1 million-$2 million per occurrence and aggregate limit. Additional coverages are automatically included in the policy. 

Best for: General contractor insurance quotes comparison online

Average cost: $44 per month

Our rating: 10/10


Tivly General Contractor Insurance

Pros

  • Call and compare general contractor insurance quotes over the phone

  • Responsive customer service 

  • A partner of many reputable insurance companies 

Cons

  • You need to speak with a representative to get a quote 

Tivly works with NEXT for its general contractor insurance, which offers general liability, workers' compensation, commercial auto, builders risk, and other policies. Progressive and GEICO might refer you to this company if they can’t provide coverage. Call Tivly now and compare general contractor insurance quotes over the phone. 

Best for: Comparing general contractor insurance quotes over the phone

Average cost: $42 per month

Our rating: 10/10


Thimble General Contractor Insurance

Pros

  • Quick to issue quotes

  • Numerous add-ons in general liability insurance

  • Sells short-term general liability insurance for general contractors

Cons

  • You can’t reach customer service by calling 

Thimble doesn’t have a general contractor insurance program. However, you can get covered through its contractors’ insurance plan which consists of general liability and workers' compensation insurance. 

Thimble’s general liability insurance is available as a short-term and long-term coverage. The long-term general liability insurance is comprehensive as it has numerous add-ons such as cyber insurance and customer property insurance. 

On the other hand, the short-term general liability insurance of Thimble provides basic coverage. However, what makes it great is that you can decide to get covered for only hours, weeks, days, or months. 

Best for: Short-term general liability insurance for general contractors

Average cost: $48 per month

Our rating: 9/10


State Farm General Contractor Insurance

Pros 

  • State Farm provides policyholders with a retirement saving vehicle 

  • Agents are available in all 50 states 

  • Customizable insurance policies 

Cons

  • Limited online capabilities 

  • Prospective policyholders can't get a quote online 

Since 1935, State Farm has been offering small businesses, including general contractors, affordable and customizable policies that promise to meet all your business needs. 

State Farm grants quick and efficient coverage through its wide network of insurance agents. This company offers the following:

  • General liability 

  • Worker's compensation 

  • Commercial auto 

  • Commercial umbrella policy 

Best for: Commercial umbrella insurance for general contractors

Average cost: $50 per month 

Our rating:  8/10 



GEICO General Contractor Insurance 

Pros

  • Robust online and mobile app accessibility 

  • Multi-policy discount available 

  • Billing and policy changes are straightforward 

Cons

  • Limited add-on coverage options 

  • Geico doesn't underwrite a lot of their insurance products 

GEICO has evolved to be one of the largest insurance carriers. The key draw to GEICO is likely its affordability, even with clients with less than stellar claims history. What's also attractive about GEICO is their self-service model, which is perfect for policyholders looking to handle their own general contractor insurance. 

It is important to note that GEICO doesn't underwrite a lot of its insurance products. Instead, it partnered with affiliated companies that provide coverage for clients. 

Best for: Commercial auto discounts

Average cost: $52 per month  

Our rating: 8/10


Progressive General Contractor Insurance

Pros

  • Multiple discounts on offer 

  • User-friendly app that you can easily manage your policy on 

  • Independent agents available to advise you on your policy 

  • Get a discount if you’re already a Progressive commercial auto policyholder 

Cons

  • General liability insurance doesn’t have a lot of additional coverages

Progressive's basic cover includes general liability coverage and commercial auto insurance. You can include additional coverage options, including: 

  • Business owner's policy (BOP)

  • Workers' compensation insurance

  • Commercial property insurance

  • Errors and omissions insurance

Best for: General contractors that need help with commercial auto state filings

Average cost: $55 per month  

Our rating:  7/10


Travelers Insurance General Contractor 

Pros 

  • All U.S. states, including Washington, DC, are covered 

  • International coverage for businesses as Travellers also operates in Canada and the U.K. 

Cons

  • Pricing solely dependent on your operations 

  • Customer reviews on Travelers are lower than expected 

Travelers goes as far back as 1864 and has since acquired an A++ rating from AM Best. This company doesn’t issue a quote. It’s because most of its insurance policies are highly specialized and include provisions that a representative has to explain for you to fully understand. 

Best for: Stand-alone and highly specialized insurance programs for general contractors

Average cost: $56 per month  

Our rating: 7/10


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