Contractor Insurance Cost Calculator

The contractor insurance cost calculator estimates your annual premium for the two policies almost every contractor needs: general liability and workers compensation. It factors in your trade's risk class, annual revenue, payroll, and team size to produce a realistic low, average, and high business insurance cost.

Whether you are a solo operator needing only general liability or a growing crew that must carry workers comp, this tool helps you budget for coverage before you bid your next job.

General liability premiums are driven by your trade's risk classification and your annual revenue or receipts. A low-risk painter pays far less than a high-risk roofer for the same coverage limits. Most small contractors pay between $500 and $2,500 per year for a standard $1M/$2M general liability policy.

Workers compensation is priced per $100 of payroll using a rate tied to each job classification code. Rates for construction trades typically range from $2 to $15 per $100 of payroll. If you have no employees, you may not be required to carry workers comp, though some clients and states require it even for solo owners.

• Trade risk class: Roofing, framing, and concrete cost more than painting or flooring.
• Revenue and payroll: Larger operations carry more exposure and higher premiums.
• Coverage limits: Higher liability limits and lower deductibles raise cost.
• Claims history: Prior claims and your experience mod raise workers comp rates.
• State rules: Workers comp requirements and rates are set at the state level.

Workers compensation is regulated by each state, and thresholds differ. In many states, coverage is mandatory as soon as you have one employee; a few require it even for owners. States like California and New York have higher medical and litigation costs, which raises premiums. A handful of states run monopolistic state funds where you must buy workers comp through the state.

General liability limits are often dictated by the contracts you bid — many general contractors and municipalities require at least $1M per occurrence and $2M aggregate.