Home Improvement Contractor Insurance: Cost & Quotes From $11/mo

Table of contents

No person would want his house to look bad. Moreover, a poorly maintained house poses dangers to neighbors as it can quickly cause a fire or infect other houses with mold. This is why periodic home improvements must be made. 

Home improvement contractors update a house’s roofing, plumbing, electrical wiring, and other parts. 

Your job has many risks. For one, the electrician you hired might get electrocuted while fixing grounded wires. The clients or their children can get hit by equipment or flying debris as you’re demolishing old walls and sidings

Purchase insurance. What provides the best protection is a tailored home improvement contractor insurance package. This falls into the general category of commercial contractor insurance. 

The features of home improvement insurance varies from carrier to carrier. This is why it’s important to look into what policies are included, the cost of premiums, and the best companies. Here’s a guide that helps you with this. 

Home Improvement Liability Insurance

Professional liability, general liability, pollution liability, and professional liability, are the three types of home improvement liability insurance. You want to have all of these to enjoy an impenetrable armor against claims that third parties may file. Proceed below to know how each of this works. 


General Liability Insurance for Home Improvement Contractors

CoverWallet  NEXT (Best) Thimble  Hiscox
Per occurrence limit  $1,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $1,000,000 $100,000 $5,000 $100,000
Waiver of subrogation included? Yes No Included Excluded
Hired/non-owned auto liability coverage included? Yes No Excluded Excluded
Equipment breakdown floater included? No  Yes Yes Excluded
Can you get a certificate of insurance online? Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes
Deductible $0 $0 $0 $0


Improving a house means that you demolish or remove structures. It’s not impossible for someone, other than employees, to get injured while doing this. Moreover, you might also overdo things and do some damage instead of refreshing the client’s house. 

Clients and their neighbors can file a claim for bodily injuries or property damage. Competitors can also sue you for slander, libel, and copyright infringement. General liability insurance protects you from these exposures. 

You can use general liability insurance to cover the costs for medical treatment, property damage reimbursement, legal defense, and court judgments if a claim is filed. Use the table above to see which company best offers this type of home improvement business insurance. 


In What Situations Can You Use General Liability Insurance?

General liability insurance can help out if the following happens in your home improvement project:

  • An independent contractor demands compensation for injuries after getting hit by a plank or getting electrocuted by defective equipment

  • Debris flew to the window of the client’s neighbor

  • Your employee hit someone while using a tractor to remove debris after you demolished the client’s wall

Is General Liability Insurance a Requirement for Home Improvement Projects?

Not really. But know that there are states which require contractors to purchase a $1 million-$2 million general liability insurance for their home improvement project. 


How Much General Liability Insurance is Available to Home Improvement Contractors? 

Carriers sell $1 million-$2 million general liability insurance for home improvement contractors. However, since projects are highly risky, it’s possible to get a general liability policy with up to $5 million limit. 


Professional Liability Insurance for Home Improvement Contractors

CoverWallet (Best) NEXT Thimble Hiscox
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $250,000/$2,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $250,000/$2,000,000
Name additional insureds? Yes Yes Yes Yes
Waiver of subrogation included? Yes No No No
Deductible  $500 $500 $500 $500


Clients can hold you liable for errors and oversights. This is because home improvement contractors are expected to observe expertise in order to avoid outcomes that will force the client to invest more money for the project. 

General liability insurance doesn’t provide coverage if a client files a claim against your home improvement service. And so, you’ll need to purchase professional liability insurance. Use the table above to see which insurance company best offers this type of home improvement insurance policy. 


In What Situations Can You Use Professional Liability Insurance?

Professional liability insurance will cover the demanded monetary compensation and legal defense costs if a client files a claim because you:

  • Failed to finish the renovation project on the date stated in the contract or the time-frame stated by the client

  • Used the wrong materials or failed to provide quality materials for the home improvement project

  • Overcharged the client

  • Failed to follow safety measures, which resulted in injuries to the clients, independent contractors, and other third parties

  • Lost an important document for the home improvement project such as blueprints or receipts which the client must see

  • Failed to follow blueprints or plans that was crafted according to the client’s preferences

  • Leaving the home improvement project unfinished

How Much Professional Liability Insurance Do Home Improvement Contractors Need?

As a home improvement contractor, you need $1 million-$2 million professional liability insurance. Consider adding a waiver of subrogation to the policy if possible to enjoy better protection against claims for negligence and other related offenses. 


Pollution Liability Insurance for Home Improvement Contractors

When you renovate or improve a house, there will be debris. Of course, you have to use owned or rented dump trucks to take this out of the project site. 

The dump trucks can accidentally spill debris. And so, a professional liability policy is the home improvement contractor liability insurance that will solve the resulting problems. Pollution liability insurance can pay for the:

  • Cost of cleaning the debris up

  • Cost for environmental restitution if the spilled debris polluted rivers, streams, forests, or areas near households

  • Legal defense expenses if third parties file a claim for property damage or bodily injuries

  • Public relations


How Much Pollution Liability Coverage Can You Get?

The limits of pollution liability insurance greatly varies, depending on which insurance company you decide to work with. It’s possible to get as little as $500,000 coverage or as hefty as $25 million coverage from the policy. 

Compare Cheap Home Improvement Contractor Insurance Quotes Online

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Commercial Property Insurance for Home Improvement Contractors

CoverWallet NEXT (Best) Thimble 
Building coverage limit (minimum) $50,000 $400,000 $1,000,000/$2,000,000
Contents coverage limit (minimum) $50,000 $35,000 $1,000,000/$2,000,000
Outdoor signs Excluded $2,500 $1,000,000
Accounts receivable  Excluded Excluded $1,000,000
Money and securities Excluded $2,500 $5,000
Lock and keys  Excluded $2,500 Included
Business interruption floater Excluded Included Excluded
Equipment breakdown floater Excluded Included Yes
Inland marine insurance floater Excluded Excluded Included
Employee dishonesty floater Excluded $5,000 Excluded


Commercial property insurance is a coverage for your business’s owned, leased, or rented storehouse, warehouse, office, or building. Having this policy will  increase your business’s resilience against the unexpected. Use the table above to see which company offers the best commercial property insurance. 

How Does Commercial Property Insurance Help You as a Home Improvement Contractor?

Commercial property insurance reimburses the actual cash value or replacement cost of a covered stand-alone building, warehouse, office, or storehouse that got damaged or destroyed. Coverage applies if either is caused by the following:

  • Fire

  • Theft

  • Vandalism

  • Civil commotion

  • Riot

  • Sinkhole collapse

  • Volcanic action

  • Lightning

  • Weather

  • Falling objects

  • Impact

  • Aircraft

  • Vehicle 

  • Sprinkler leakage

Are Equipment and Tools Also Covered?

Yes. Commercial property insurance grants a $10,000-$100,000 worth of coverage for equipment and tools. Examples of items covered are forklifts, tractors, drills, concrete mixers, cutters, and more. Note that the coverage of commercial property insurance doesn’t apply if tools and equipment got lost or damaged during travel or while at the site of the home improvement project. 


Can I Use Commercial Property Insurance as a Coverage for the Unfinished Home Improvement Projects?

No. Unfinished home improvement projects are under your custody but they’re not a business property. Nonetheless, you can include a builders risk policy in your home improvement contractor insurance package to address this gap. 


Business Owner’s Policy for Home Improvement Contractors

CoverWallet NEXT (Best) Thimble 
General liability aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000
Commercial property coverage limit  $50,000 $400,000 $25,000/$500,000
Optional policies can be added? Yes Yes Yes
Name additional insureds for free? Yes Yes Yes
BOP discount? Yes Yes Yes

Purchase a business owner’s policy and you will protect yourself against legal liabilities and commercial losses in one go. This type of home improvement insurance bundles a general liability policy and commercial property policy. It’s even possible to further add non-owned/hired auto liability coverage, or cyber liability coverage for more protection. Use the table above to see which company offers the best business owner’s policy for home improvement contractors. 


Tools and Equipment Insurance for Home Improvement Contractors 

NEXT (Best) Thimble
Aggregate limit $5,000/$10,000 $1,000/$5,000
Offered as an endorsement to general liability insurance? Yes Yes
Covers hired and borrowed equipment? Yes Yes
Miscellaneous equipment also covered? Yes No
Deductible $500 $500


You don’t only want to insure tools and equipment against damage, loss, or destruction while they’re in the warehouse, office, stand-alone building, or storehouse. It’s also important to protect them while they’re being used at the site of the home improvement project. For this purpose, you need to purchase tools and equipment insurance. 


How Does Tools and Equipment Insurance Work?

Tools and equipment insurance will cover the repair or replacement of tractors, forklifts, ladders, concrete mixers, drills, and other related items that got damaged, lost, or destroyed due to fire, theft, vandalism, operator error, upset, electrical surge, electrical shorts, and other covered perils. 

You can use this insurance when the covered exposure happens while the equipment is in transit or currently at the site of the home improvement project. 


Workers Compensation Insurance for Home Improvement Contractors

Home improvement belongs to the construction industry, which is one of the industries with the highest count of work-related injuries and deaths. Experts estimate that at least 75 deaths occur per year and this translates to 6 deaths a month. 

You don’t want to bear the burden if an employee gets injured or dies at work. A safe way to shift your responsibility somewhere else is by buying workers compensation insurance. By having workers compensation insurance, the insurance company will be compelled to cover these costs when an employee gets injured or sick because of work:

  • Emergency care

  • Hospitalization

  • Medication

  • Rehabilitation and retraining 

  • Lost wages

  • Death benefits


Commercial Auto Insurance for Home Improvement Projects

You will use dump trucks, some trailers, or maybe even tractors to transport supplies and haul debris. It’s important to get commercial auto insurance if you’re owning or leasing such heavy equipment


How Does Commercial Auto Insurance Help You?

Commercial auto insurance can do many things. Here’s a quick summary of how this home improvement business insurance can help you:

  • Cover the medical treatment of third parties if your dump truck, tractor, or any other covered mobile equipment causes an accident while moving debris

  • Cover the medical treatment of the driver if your dump truck, tractor, or any other mobile equipment gets involved in an accident caused by an uninsured/underinsured driver

  • Cater to the repair or replacement of parts if your dump truck, tractor, or any other mobile equipment sustains damage due to fire, theft, weather, and other covered perils 

Builders Risk Insurance for Home Improvement Contractors

Builders risk insurance protects the home improvement project during its construction phase. If a covered project sustains structural damage or has its materials lost because of fire, theft, vandalism, explosions, lightning, and other covered perils, builders risk insurance will reimburse the resulting financial losses. In other words, this sees to it that the project can be completed even if a disaster happens. 

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Home Improvement Contractor Insurance Cost 

Cost per Month Cost per Year Best for
General liability insurance $70 $840 $0-$500
Professional liability insurance $90 $1,080 $500-$1,000
Commercial property insurance $75 $900 $1,000-$2,000
Business owner’s policy $140 $1,680 $1,500
Commercial auto insurance $55 $660 $500-$1,000
Workers compensation insurance $110 $1,320 $1,000-$2,500
Builders risk insurance Depends on the estimated value of the ongoing home improvement project Depends on the estimated value of the ongoing home improvement project $1,000-$2,500


The average home improvement contractor insurance cost is $70 per month or $840 per year for a $1 million general liability insurance. Note that this is just an estimate and your actual home improvement insurance cost can be higher or lower depending on these factors:

  • Location

  • Number of employees

  • Annual revenue

  • Policy limits

  • Deductibles

In connection, here’s a table showing the rates of the companies where you can get a cheap home improvement insurance quote:

Cost per Month Cost per Year Best for
NEXT $55 $660 Best overall; Fastest general liability insurance for home improvement contractors
CoverWallet $57 $684 Home improvement contractor insurance online quotes comparison
Tivly $60 $720 Comparing quotes over the phone
Thimble $65 $780 On-demand coverage for home improvement contractors
MHIC $73 $876 Contractual-based coverage for home improvement contractors


Each insurance company offers different levels of customization to meet your coverage needs and your budget. A website that compares multiple companies ensures that there are no underwriting issues and that you get the lowest premiums.  

Comparing insurance quotes may also fill any gaps that may occur without recognizing the variety of policies available for your business. We allow you to compare quotes with a click of a button. Start by clicking the “Get Quotes” button on this page. 

Compare Cheap Home Improvement Contractor Insurance Quotes Online

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

Best Home Improvement Business Insurance Companies

Always strive to work with the best company to avoid headaches. What might be an easy way to find it is by reading reviews. Below are our insights of the best home improvement business insurance companies. Read to know their pros, cons, and cost of a $1 million general liability insurance. 


NEXT Home Improvement Contractor Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for home improvement contractors 

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any

NEXT might be a good option if you’re looking for quick coverage online. This company will insure you through its contractor’s insurance package. You can purchase this as a deluxe, premiere, or basic coverage. Policies offered are as follows:

  • $1 million-$2 million general liability insurance

  • $1 million professional liability insurance

  • $400,000 commercial property insurance

  • Business owner’s policy

  • Workers compensation insurance

  • Commercial auto insurance

You will find NEXT good because it quickly issues an online certificate of insurance. All you have to do is download the NEXT app and use your account, which is made after you get insured. 

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

Average cost: $55 per month

Our rating: 10/10


CoverWallet Home Improvement Contractor Insurance 

Pros

  • Compare home improvement contractor insurance quotes online

  • Cancel your coverage anytime

  • Waiver of subrogation can be added to general liability and professional liability insurance

  • Terrorism coverage can be included

Cons

  • Not an insurance company but an insurance broker

CoverWallet’s home improvement contractor insurance package is made by sourcing the insurance quotes of different partners. That said, this company sees to it that you enjoy comprehensive coverage regardless of business profile. These are some of the policies available:

  • $1 million-$2 million general liability insurance with waiver of subrogation

  • $1 million-$2 million professional liability insurance

  • $50,000 commercial property insurance

  • Commercial auto insurance

  • Workers compensation insurance

  • Business owner’s policy

Best for: Home improvement contractor insurance online quotes comparison 

Average cost: $57 per month 

Our rating: 10/10


Tivly Home Improvement Contractor Insurance

Pros

  • Compare quotes over the phone

  • Responsive customer service

  • A partner of many reputable insurance companies

Cons

  • You need to call to get a quote

Tivly covers home improvement contractors through its contractor’s insurance package made by compiling the quotes of partners. This offers a general liability policy, professional liability policy, pollution liability policy, commercial auto policy, and others. You need to call a Tivly representative to compare quotes over the phone. 

Best for: Comparing quotes over the phone

Average cost: $60 per month

Our rating: 10/10


Thimble Home Improvement Contractor Insurance

Pros

  • On-demand coverage

  • Numerous add-ons can be included to general liability and business owner’s policy

  • Quick to issue an estimate of your rates

  • Allows you to choose policy limits

Cons

  • You can’t reach customer service by calling 

Thimble is a good option if you’re looking for on-demand coverage that conforms with the minimum insurance requirements of contracts. Just like NEXT and Tivly, you get covered through a generic contractor’s insurance package. Policies you can avail are:

  • $1 million-$2 million general liability insurance with an optional business equipment coverage

  • $1 million-$2 million professional liability insurance which may automatically come with a waiver of subrogation

  • Business owner’s policy

  • Workers compensation insurance

Best for: On-demand coverage for home improvement contractors

Average cost: $65 per month

Our rating: 9/10


MHIC Insurance

Pros

  • Can provide policies that great fits the needs of home improvement contractors

  • Allows you to file a claim online

  • General liability and professional liability can cover temporary staff

  • Contractual-based coverage available 

Cons

  • Coverage is provided in partnership with Fuller and Associates

MHIC isn’t an insurance company. Rather, this is an organization that seeks to regulate and continuously improve the experience, knowledge and expertise of home improvement contractors. This company grants life and business insurance coverage. You need to call and contact a representative of the organization to get covered.

Best for: Contractual-based coverage for home improvement contractors

Average cost: $73 per month

Our rating: 9/10

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