General contractors who buy through Insureon pay a median $162 a month ($1,950 a year) for general liability, $125 a month for a business owner's policy and $287 a month for commercial auto, per Insureon's July 2026 figures. Insureon puts workers' comp at $196 a month, and its state figures for general contractors run from $171 a month for workers' comp in Pennsylvania to $590 in California. Your own price moves with the trades you perform (electrical, roofing and steel work cost more), residential versus commercial work, payroll and subcontractor spend, years in business, location and claims history.
Most general contracting businesses pay about $162 a month for general liability and $125 a month for a business owner's policy (BOP), based on Insureon's figures for its own customers.
Price is one part of it. Our general contractor insurance guide covers which policies you need and why.
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What Drives General Contractor Insurance Cost Up or Down
- Services and their risk: Insureon says high-risk work such as electrical, roofing or steel work costs more to insure than lower-risk work, and whether you do commercial or residential jobs changes the price too.
- Employees and subcontractors: more people on the job means more chances for injuries and damage to other people's property (Insureon).
- Revenue and payroll: Insureon says higher revenue and higher pay to employees or subcontractors raise the premium.
- State: Insureon's general contractor figures show workers' comp from $171 a month in Pennsylvania to $590 in California, and general liability from $57 in Pennsylvania to $152 in Texas.
- Experience and claims: newer contractors and those with more claims pay more, and your experience modification rating (EMR) adjusts workers' comp against similar contractors (Insureon).
- Equipment value: higher-value and heavily used tools cost more to insure, and Insureon says items worth over $2,500 may need to be listed separately.
General Contractor Insurance Cost Breakdown
Premiums from Insureon's 2026 general contractor cost data for its own customers (Insureon calls them averages; its method note describes median premiums):
| Coverage | Average Monthly | Average Annual |
|---|---|---|
| General liability (GL) | $162/mo | $1,950/yr |
| Business owners policy (BOP) | $125/mo | $1,503/yr |
| Workers' compensation | $196/mo | $2,348/yr |
| Commercial auto | $287/mo | $3,444/yr |
| Professional liability (E&O) | $67/mo | $808/yr |
| Commercial umbrella | $140/mo | $1,680/yr |
| Tools & equipment | $42/mo | $505/yr |
Worked example: 10-employee residential remodeling GC in Texas, $1.8M revenue
A 10-employee residential remodeling contractor in Texas doing kitchen and bath remodels and additions, with no roofing or structural work, $1.8M in annual revenue, $400K in subcontractor spend (mostly tile, drywall and electrical), three vans and a flatbed, and four years without claims. Insureon's median per-policy premiums for general contractors: GL $1,950/yr, commercial auto $3,444/yr, tools and equipment $505/yr, commercial umbrella $1,680/yr (for contracts that ask for higher limits) and workers' comp $2,348/yr. Workers' comp is priced on payroll and class code, so a 10-employee contractor will pay well above the median policy; most Insureon customers have fewer than five employees. The auto premium likewise depends on how many vehicles and drivers the policy covers. For Texas specifically, Insureon's general contractor medians are $152 a month for GL, $306 for workers' comp and $254 for commercial auto.
Sum of Insureon median premiums for these coverages: $9,927/yr (sum of Insureon median per-policy premiums, not a quote)
This is an illustration built from Insureon's per-policy figures above, not a quote. Your premium depends on payroll, revenue, claims history, state and the insurer.
What You'll Be Asked When Quoting General Contractor Insurance
Whether you quote directly online or work with an independent agent, these are the questions underwriters actually use to price general contracting businesses. Knowing them ahead of time saves back-and-forth and lets you compare quotes apples-to-apples.
Which trades do you perform yourself, and is any of it roofing, electrical or steel work?
Insureon says high-risk services such as electrical, roofing or steel work cost more to insure than lower-risk work. Workers' comp is priced on how many employees you have and the type of work they do (Insureon), so self-performed trades show up there.
How much do you spend on subcontractors, and do you collect their certificates of insurance?
Insureon lists subcontractors, and what you pay them, as pricing factors. Ask your insurer how it charges for subcontractors who can't show their own coverage.
Is your work residential, commercial or both?
Insureon says the mix of commercial and residential work changes the price. Bring any contract insurance requirements to the quote so the insurer prices the limits and wording you need.
Do any contracts require an umbrella, builder's risk or a bond?
Insureon's general contractor medians are $140 a month for an umbrella, $136 for builder's risk and $10 for surety bonds. Umbrella cost depends mainly on the amount of coverage, builder's risk on the value of the structure, and a bond on its size.
What is your claims history, and what is your EMR?
Insureon says contractors with more claims pay more, and your experience modification rating adjusts workers' comp against similar contractors.
How many years have you been in business?
Insureon says contractors with more experience tend to pay lower premiums than newer ones.
How to Lower Your General Contractor Insurance Cost
- Compare quotes on the same limits and deductible. Insureon's general liability median assumes $1 million per occurrence, $2 million aggregate and a $500 deductible; a higher deductible lowers the premium.
- Check whether you qualify for a BOP. Insureon says only small, low-risk businesses qualify, which is why its BOP median ($125) sits below its general liability median ($162).
- Ask about bundling professional liability. Insureon says general contractors can often bundle E&O with general liability for a combined median of $150 a month.
- Keep workplace injuries down. Your EMR adjusts workers' comp based on your claims against similar contractors (Insureon), so fewer injury claims means a better rating.
- Collect a certificate of insurance from every subcontractor. Insureon lists subcontractors as a general liability pricing factor; ask your insurer how it charges for subs who can't show their own coverage.
Frequently Asked Questions
How much does general contractor insurance cost?
Per Insureon's 2026 data, general liability averages $162/month ($1,950/year), a business owners policy averages $125/month, workers' compensation runs $196/month. Total premium depends on revenue, employees, state, and claims history.
What insurance do I need as a general contractor?
Most general contracting businesses need: general liability (often bundled into a business owners policy), workers' compensation once you have any employees, commercial auto for any vehicles in the business, professional liability (E&O) if you provide advice or deliverables, commercial umbrella for excess liability limits, tools and equipment coverage for property in transit. The specific mix depends on your operations, employee count, and any contractual requirements from clients or vendors.
How long does it take general contracting businesses to get insurance quotes?
Insureon says most small businesses can get covered within 24 hours of applying for quotes. Have your revenue, payroll, subcontractor spend, trade mix, vehicle and driver details, and loss runs ready, and send any contract insurance requirements with the application.
Should general contracting businesses buy insurance direct or through an agent?
Either route works. Buying direct gets you one insurer's price; a broker, independent agent or online marketplace can return quotes from several insurers off one application. Whichever you use, compare quotes on the same limits, deductible and additional insured wording, and check that each one meets the requirements in your contracts.
Why is a general contractor's BOP cheaper than general liability?
In Insureon's figures a BOP costs $125 a month against $162 for general liability, even though a BOP includes general liability. Insureon's explanation is that only small, low-risk businesses qualify for a BOP, so the BOP median reflects a lower-risk group of contractors. Ask your insurer whether your trades qualify for a BOP before you compare prices.
Do I need different insurance for residential and commercial work?
The policies are the same: general liability, workers' comp, commercial auto, tools and equipment, and an umbrella if a contract asks for higher limits. Insureon says whether you do commercial or residential work affects the price. Before you bid, read the contract's insurance section and ask your insurer whether it can meet the required limits and additional insured wording.
How much do workers' comp, umbrella, builder's risk and surety bonds cost for general contractors?
Insureon's general contractor figures: workers' comp $196 a month ($2,348 a year), commercial umbrella $140 a month ($1,680 a year), builder's risk $136 a month ($1,635 a year) and surety bonds $10 a month ($126 a year). Workers' comp depends on how many employees you have and what they do, an umbrella mainly on how much coverage you buy, builder's risk on the value of the structure, and a bond on its size.
Related Guides for General Contractor Insurance
For an independent breakdown of which carriers actually write general contractor insurance well in 2026, see our carrier comparison.
For the coverages general contracting businesses need and what insurers ask before they quote, see our general contractor insurance guide.