Contractor Insurance Cost Calculator
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About Contractor Insurance
Contractors face some of the highest insurance costs of any business category, reflecting the physical risks of construction work. General liability insurance is required to be licensed in most states and to qualify for commercial projects. Workers compensation is legally required for any contractor with employees and is priced per $100 of payroll — roofing workers carry among the highest workers comp rates in the country at over $18 per $100 payroll. Many clients and general contractors require certificates of insurance (COI) before work begins. Bundling GL and workers comp with the same carrier often results in better pricing and simplified claims management for your contracting business.
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Frequently Asked Questions
What insurance do contractors need?
At minimum, contractors need general liability insurance and workers compensation (if they have employees). Larger projects may also require commercial auto, builder's risk, inland marine (tools and equipment), and professional liability.
Why is roofing insurance so expensive?
Roofing is one of the most dangerous trades — workers perform tasks at heights with significant fall risk. This results in very high workers comp rates (often $15-25 per $100 payroll) and elevated GL premiums compared to other contractor types.
What is a certificate of insurance (COI)?
A COI is a document that proves you carry the required insurance coverage. Clients, GCs, and property owners commonly require contractors to provide a COI — and often ask to be named as additional insureds — before work begins.
Does contractor insurance cover subcontractors?
Generally, no. Your GL policy may cover uninsured subcontractors but will charge additional premium. Always require subcontractors to carry their own GL and workers comp and provide you with COIs to limit your liability.
What is builder's risk insurance?
Builder's risk insurance covers structures under construction against damage from fire, theft, vandalism, and weather. It is typically required for new construction projects and paid for by either the contractor or the property owner depending on the contract.
Results are estimates only. Actual premiums depend on underwriting factors specific to your business. Consult a licensed insurance professional for an accurate quote.
How to Use This Calculator
- Enter your details — Fill in the required fields above with your personal or policy information. The more accurate your inputs, the better your estimate.
- Review your results — Your estimate appears instantly as you complete the form. Check the breakdown to understand how each factor affects your numbers.
- Compare and take action — Use the results to compare options, discuss with your insurance agent, or make informed decisions about your coverage needs.
Common Use Cases
- Shopping for a new policy — Get a baseline estimate before requesting quotes from multiple insurers so you know what to expect and can negotiate effectively.
- Reviewing coverage at renewal — Compare your current costs against what this calculator suggests to identify potential savings or coverage gaps before your policy renews.
- Financial planning and budgeting — Factor insurance costs into your monthly budget or long-term financial plan with realistic estimates rather than guesswork.