Cost
There is no single price for contractor insurance. The premium follows your trade, payroll, states and loss history rather than the name of the policy.
Two contractors with identical revenue can pay premiums that differ by a factor of four. The reason is almost always classification, not the carrier. A roofer and a painter are not the same risk, and a carrier that writes one may decline the other outright.
That is why a useful quote takes a few questions rather than a price list. The answers that move the number most are the trade, the payroll, the states you work in, and how much of the work is subcontracted.
The rate per hundred dollars of payroll is set by the class code, and class codes follow the actual work rather than the business name. A crew doing framing priced as general carpentry underpays until the audit, which produces a bill. Priced the other way round, you overpay for years without noticing.
Payroll is the exposure base for general liability and workers compensation, so it is the largest single input. Overtime, bonuses and the value of materials you supply can all affect how it is calculated.
Subcontracted labor is treated differently depending on whether the sub carries their own coverage and can show you a current certificate. Uninsured subs are often charged back to your payroll, which surprises contractors at audit.
Rates, benefit levels and minimum requirements vary by state. A policy covering several states prices on the highest-exposure state on the schedule, so it is worth listing all of them accurately rather than only the home state.
Prior claims, and how long you have been in business, move pricing more than most contractors expect. A clean year is worth real money the following year.
Higher limits cost more, and a higher deductible costs less. The deductible is where contractors most often cut, and where the choice matters least in the long run on liability, because liability claims are usually large.
For a typical contractor, workers compensation is usually the largest line, followed by general liability, then commercial auto, then tools. That ordering surprises contractors who assumed liability would dominate, but workers compensation is priced on payroll and pays statutory benefits with no cap.
It depends almost entirely on the trade and the payroll. A low-hazard trade with a small payroll can be inexpensive; a roofing operation with a large payroll in a high-cost state is a different number entirely. Anyone quoting a price without asking your trade is guessing.
Because it pays statutory benefits to your own employees with no cap on medical costs, and it is priced on the whole payroll rather than a fraction of it. It is also the coverage most likely to be used.
Sometimes, and only if those subs carry their own coverage and you can show current certificates. If they do not, the payroll is often charged back to you at audit, which means the saving was temporary and the bill arrives later.
A factor applied to workers compensation pricing that reflects your claims history against others in the same classification. Below one means you pay less than the base rate; above one means you pay more. It follows you between carriers, so it is worth managing.
Tell us your trade, payroll and state and a licensed specialist will come back with real numbers.
