General Liability Insurance Cost Calculator for Contractors
Compare like for like: the same per-occurrence and aggregate limits, the same additional-insured and completed-operations wording, and the same exclusions for your trade. Ask whether the premium is based on your revenue or payroll and whether it's adjusted at the end of the year.
Turn this into a quote
A one-page PDF for your customer, filled in from the numbers above. Your markup isn't shown.
How the general liability insurance cost calculator for contractors calculation works
Enter the premium, limit and deductible from each quote
Quote A: $1,700 a year for $1,000,000 per occurrence with a $1,000 deductible. Quote B: $2,100 for $2,000,000 with a $500 deductible.
Compare cost per $100,000 of coverage
A is $170 per $100,000 of limit; B is $105. B costs $400 more but buys coverage more cheaply.
Compare a year with one claim
Premium plus deductible: A is $2,700 and B is $2,600. The cheaper premium isn't cheaper if you have a claim.
Build the premium into your bids
$1,700 over 120 jobs is $14.17 a job, or $5.67 per $1,000 of a $300,000 year: 0.57% of revenue.
Worked example. A contractor with $300,000 of revenue and 120 jobs a year compares a $1,700 quote ($1,000,000 per occurrence, $1,000 deductible) with a $2,100 quote ($2,000,000, $500 deductible). Quote A is $141.67 a month, $14.17 per job and $170 per $100,000 of coverage; Quote B is $105 per $100,000, and a year with one claim costs $2,600 under B against $2,700 under A.
General Liability Insurance Cost Calculator for Contractors FAQ
How much does general liability insurance cost for a contractor?
It depends on your trade, revenue or payroll, claims history, state, and the limits and deductible you choose. Get two or three quotes and compare them here on cost per $100,000 of coverage and on a year with a claim.
What does general liability cover for contractors?
It pays to defend you and settle claims that your work or your business caused injury to someone else or damage to their property. It doesn't cover your own employees' injuries; that's workers' comp.
How much coverage does a contractor need?
Start with what your clients, general contractors and your state or city license require: many name a minimum per-occurrence and aggregate limit. For example, Washington's Department of Labor & Industries requires contractors who register to carry general liability of $200,000 public liability and $50,000 property damage, or a $250,000 combined single limit. Contracts often ask for more, so check them before you choose, then compare quotes at that limit and one step higher.
What's the difference between per-occurrence and aggregate limits?
The per-occurrence limit is the most the policy pays for one occurrence (one accident or event). The aggregate, as the NAIC defines it, is the most the policy pays for one or more losses during the policy period, or on a single project. Compare quotes with the same of both.
What is commercial general liability (CGL) insurance?
It's the standard business liability policy. The NAIC describes it as broad coverage with two main parts: premises and operations (injury or damage from your business and your work in progress) and products and completed operations (injury or damage caused by work you have finished).
What is completed operations coverage?
It covers claims that defective work you finished or abandoned caused injury or property damage, for example a leak that floods a kitchen months after you left. The NAIC glossary names contractors, plumbers, electricians and repair shops as typical buyers. Check that each quote includes it and on the same terms.
Is contractor insurance the same as general liability?
Not quite. "Contractor insurance" usually means a set of policies: general liability, workers' comp if you have employees, commercial auto for work vehicles, and often cover for tools and equipment, plus a license bond in many states. General liability is the core one; compare its quotes here.
Should I add insurance to my bids?
Yes. It's a cost of every job. The calculator shows the premium per job and per $1,000 of revenue so you can include it in your overhead or markup.
Do I need workers' comp too?
If you have employees, check your state's workers' comp rules: general liability doesn't cover their injuries. Estimate the cost with the workers' comp cost calculator.
Sources: NAIC: Glossary of insurance terms (commercial general liability, completed operations liability, aggregate, deductible) · Washington L&I: Register as a contractor (bond and general liability requirements)