How much does general contractor insurance cost?
Price-free, plain-English: what actually drives the number — and how to keep it down.
The short answer
General contractor insurance has no flat price — it is built from the factors below, and GCs are generally rated higher than single-trade contractors because they carry responsibility for the whole project. Your revenue, payroll, use of subcontractors, and the type of work drive the number. A quick quote is the only way to see it.
What actually drives your price
- Annual revenue. General liability is generally rated on revenue, and GC revenue includes the value of subcontracted work — a major factor.
- Subcontractor costs. Carriers look at how much you pay subs and whether they carry their own insurance and name you as additional insured.
- Employees and payroll. Direct employees trigger workers compensation and affect general liability.
- Type of work. New residential construction, structural work, and higher-hazard projects are rated higher; some carriers restrict new-residential.
- Completed operations. Defect claims can surface years later; completed-operations coverage is central to a GC policy and affects pricing.
- Coverage limits, claims history, and state. Project owners often require $1M/$2M or higher; prior claims and your state also move the rate.
Two illustrative profiles (hypothetical, for illustration only)
- Small remodeler: A small GC doing residential remodels with modest revenue and limited sub use would commonly land at the lower end.
- Larger builder using many subs: A GC with significant subcontracted volume, new-construction work, and higher limits would commonly land higher.
How to keep the premium down
Require certificates and additional-insured status from every subcontractor, carry the limits your projects require, keep a clean claims record, disclose new-residential work accurately, and keep written contracts that allocate risk.
The honest bottom line
The only way to know your price is to get a quote — it takes a few minutes, and the factors above get priced in automatically. Coverage terms, eligibility, and pricing are determined by the carrier and vary by state and individual circumstance.
Frequently asked questions
Does my policy cover work done by subcontractors?
It depends on the policy form. Some extend to subs; many require subs to carry their own coverage and name you as additional insured. Always review the form with a licensed insurance professional.
Why is GC insurance more than a single-trade policy?
A general contractor is responsible for the whole project, and revenue typically includes subcontracted work — so the rated exposure is larger than a single trade’s.
See your actual price
Tell us about your business and we'll route you to an instant-quote carrier when one fits.
Get a quote →