Insurance for a general contractor: what you need + typical cost.

For your business: A BOP may not cover contractor-specific risks adequately; specialized contractor packages often provide better fit.

What it covers in general: A Business Owners Policy bundles General Liability and Commercial Property into a single, discounted policy. Often includes business interruption insurance as well.

Typical annual cost: $750–$1,800 (median $990) · Insureon, Small Business Insurance Cost

For your business: Property damage and bodily injury at job sites are frequent claims. Most clients and GC licenses require minimum GL limits.

What it covers in general: Covers claims of bodily injury or property damage that your business causes to others — a customer slipping in your shop, or a contractor accidentally breaking a client's window.

Typical annual cost: $500–$1,560 (median $540) · Insureon, General Liability Cost

For your business: Not typically needed unless you provide architectural/engineering design services as part of your scope.

What it covers in general: Covers claims that your professional advice, service, or work product caused a financial loss to a client — also called Errors & Omissions (E&O) or malpractice insurance.

Typical annual cost: $700–$1,500 (median $876) · Insureon, Professional Liability Cost

For your business: Construction is the highest-risk industry for worker injuries. Required in virtually all states; subcontractors may also trigger liability.

What it covers in general: Pays for medical expenses and lost wages if an employee is injured or becomes ill because of their job. Also protects your business from employee lawsuits over workplace injuries.

Typical annual cost: $1,200–$8,000 (median $2,500) · Insureon, Workers Compensation Cost

For your business: Tools, equipment, and materials at job sites need coverage. Builder's risk covers projects under construction.

What it covers in general: Covers your physical business assets — building (if you own it), equipment, inventory, and furniture — against fire, theft, vandalism, and certain weather events.

Typical annual cost: $970–$1,570 (median $1,270) · Insureon, Commercial Property Cost

For your business: Contractors increasingly use digital project management and handle client payment information.

What it covers in general: Covers losses from data breaches, ransomware attacks, and cyber fraud — including notification costs, credit monitoring for affected customers, legal fees, and regulatory fines.

Typical annual cost: $1,440–$2,160 (median $1,800) · Insureon, Cyber Liability Cost

For your business: Work trucks and vans used for hauling materials or tools require commercial auto coverage.

What it covers in general: Covers vehicles used for business purposes — work trucks, vans, cars driven to client sites — against accidents, liability, and damage. Personal auto policies specifically exclude commercial use.

Typical annual cost: $1,760–$2,940 (median $2,350) · Insureon, Commercial Auto Cost

For your business: Major construction incidents can generate large claims; umbrella extends your GL limits.

What it covers in general: Adds an extra layer of liability coverage above your GL, Professional Liability, and/or Auto limits. Pays claims that exceed your primary policy limits.

Typical annual cost: $750–$1,500 (median $1,030) · Insureon, Umbrella Liability Cost

Do I need separate liability coverage for each subcontractor I use?

No, but you need a 'subcontractor warranty' on your GL policy and you must verify each sub's own GL coverage before they start. Most claims involving sub work get filed against the GC first; your insurer then subrogates against the sub's carrier. Without your subs carrying their own coverage, you absorb the full loss.

What's a 'tools and equipment floater' and do I really need it?

It's a Property rider that covers tools and equipment when they're off your owned premises (i.e. on a job site or in transit). Standard Property only covers items at your business location. For a contractor with $20K+ of tools moving daily, the floater (typically $300-$700/year) is essentially mandatory — one stolen ladder rack can cost $5K to replace.

How does the type of work I do affect my workers comp rate?

Workers comp rates are driven by 'class codes' — granular categories that reflect injury frequency for that exact type of work. Roofing carries the highest rates ($20-$40 per $100 of payroll in many states); office work the lowest. If your team does multiple types of work, class your payroll proportionately or you'll overpay for the whole crew at the highest-risk rate.