Home Improvement
How Much Does Contractor Insurance Cost? A Detailed Guide

Contractor insurance is one of the most essential investments for anyone in the construction or skilled trades industry. Whether you’re a general contractor, electrician, roofer, or handyman, having the right coverage protects you from financial risks like lawsuits, injuries, and property damage. But many contractors wonder: how much is contractor insurance?
In this detailed guide, we’ll explore the average costs of contractor insurance, the different types of coverage available, and what factors influence your premium. We’ll also recommend a trusted source for tailored contractor insurance solutions: Tothfelty Insurance.
What Is Contractor Insurance?
Contractor insurance is a bundle of policies designed to protect professionals in the construction and trades industries. Depending on your business type, you may need a combination of general liability, workers’ compensation, commercial auto, and other coverages to stay protected and compliant with regulations.
To get an accurate quote tailored to your business, visit Tothfelty Insurance, where you can work with professionals who understand the insurance needs of contractors.
Breakdown of Key Insurance Types
1. General Liability Insurance
This is the most essential policy for any contractor. It covers third-party injuries, property damage, and legal costs if someone sues you.
- Example: A client trips over your tools and sues for medical expenses—this policy covers it.
2. Workers’ Compensation Insurance
If you have employees, this coverage is mandatory in most states. It covers medical expenses and lost wages due to work-related injuries or illnesses.
- Tip: High-risk jobs like roofing or excavation will have higher premiums.
3. Commercial Auto Insurance
Covers vehicles used for business operations, including accidents, theft, and liability.
- Why It Matters: Personal auto insurance usually won’t cover business-related accidents.
4. Tools and Equipment Insurance
Covers damage or theft of tools and small equipment used on the job.
- Benefit: Fast replacement without large out-of-pocket expenses.
5. Builder’s Risk Insurance
Protects construction projects in progress against fire, vandalism, theft, or weather damage.
- Cost: Typically 1%–4% of the total construction value
- Use Case: Required for new builds or major renovations.
6. Professional Liability Insurance
Also called errors and omissions (E&O), it protects you against claims of negligence or failure to deliver services as promised.
- Who Needs It: Contractors offering consulting, design, or planning services.
Factors That Influence the Cost of Contractor Insurance
- Trade Type: High-risk trades (like roofing or electrical) have higher premiums than lower-risk ones (like painting or landscaping).
- Business Size: More employees and vehicles mean higher costs.
- Location: Insurance rates vary by state and even city, based on local laws and risk factors.
- Claims History: A clean claims record lowers your premiums. Frequent claims may increase them.
- Coverage Limits: Higher limits offer more protection but come at a higher cost.
- Experience: Long-established businesses with proven safety records often receive lower rates.
Tips to Reduce Contractor Insurance Costs
- Bundle Policies: Get general liability, auto, and tools coverage from one insurer for a discount.
- Improve Job Site Safety: Fewer claims mean lower premiums over time.
- Review Annually: Make sure you’re not over-insured or paying for unnecessary coverage.
- Work with a Specialist Broker: Agencies like Tothfelty Insurance can help you compare quotes and find cost-effective coverage tailored to contractors.
Why Choose Tothfelty Insurance?
Tothfelty.com specializes in providing contractor insurance solutions for professionals across a wide range of trades. With their industry expertise and personalized service, they help you:
- Identify the exact coverage you need
- Compare quotes from top-rated carriers
- Avoid paying for unnecessary policies
- Stay compliant with state and client requirements
Their team understands the risks contractors face and offers policies designed to protect your reputation, finances, and future.
Final Thoughts
Contractor insurance isn’t a luxury—it’s a necessity. It’s a small price to pay for peace of mind and business security. The right insurance plan protects you from accidents, legal claims, and costly setbacks, allowing you to focus on growing your business.
If you’re ready to protect your business with comprehensive guide how much is contractor insurance and affordable coverage, contact Tothfelty Insurance. Their team of experts will help you find the right contractor insurance at the right price.