Cost of contractor insurance — typical 2026 premiums by trade and shop size

The cost of contractor insurance in 2026 runs $540 to $2,400 per year for solo contractor general liability (GL), and $2,200 to $14,000 per year for 5-tech shops carrying GL plus workers compensation plus commercial auto. Roofing shops pay 2 to 3 times more than plumbers or electricians for equivalent coverage, driven by fall exposure and claim severity. We verified these ranges in April 2026 via Insureon, Next Insurance, The Hartford, and MoneyGeek quote data, plus our own anonymous quotes for representative HVAC, plumbing, electrical, and roofing shops across 12 states. This guide breaks the numbers down coverage by coverage, trade by trade, by shop size, then names the carriers that win each profile.

Quotes below assume clean claims history, $1M/$2M GL limits, standard class codes, and US operations unless noted. Premiums move with revenue, payroll, experience mod, state, and deductible. The ranges are what a reasonable shop should see in 2026.

The four core coverages and what they cost

A working contractor insurance stack has four parts. Most shops need all four by the time they hire their second technician.

1. General liability (GL)

General liability covers bodily injury and property damage your work causes to third parties. It is the non-negotiable baseline, and most commercial customers and licensing boards require it.

Typical 2026 GL ranges for contractors:

• Solo contractor, handyman or light service trades: $420 to $900 annual premium.
• Solo HVAC, plumbing, electrical: $540 to $1,800 annual.
• Solo roofing: $900 to $3,200 annual.
• 5-tech shop, HVAC or plumbing: $2,100 to $4,500 annual.
• 5-tech shop, roofing: $4,500 to $8,200 annual.
• 15-tech shop, HVAC or plumbing: $5,200 to $11,000 annual.
• 15-tech shop, roofing: $11,000 to $22,000 annual.

The Hartford publishes an average GL premium of roughly $75 per month (about $900 annually) across their small business book, with contractor trades skewing 30 to 80 percent higher (verified April 2026 via https://www.thehartford.com/general-liability-insurance/how-much-does-general-liability-cost). Insureon's published 2026 medians run $142 per month for general contractors, $82 per month for construction businesses overall, and $97 to $836 per month for roofers depending on revenue (verified April 2026 via https://www.insureon.com/construction-contracting-business-insurance/general-contractors/cost and https://www.insureon.com/construction-contracting-business-insurance/roofing/cost).

2. Workers compensation

Workers comp is rated per $100 of payroll, per class code, per state. It is the most state-variable coverage in the stack. Texas is optional for most private employers; every other state effectively requires it once you hire a W-2 employee.

Typical 2026 rates per $100 of payroll for contractor class codes (national ranges):

• National Council on Compensation Insurance (NCCI) 5183 (Plumbing, non-residential / commercial): $2.50 to $6.80.
• NCCI 5190 (Electrical wiring, within buildings): $1.80 to $5.20.
• NCCI 5537 (Heating, air conditioning installation): $3.00 to $7.40. Florida posts 5537 at $3.00 per $100 for 2026 (verified April 2026 via https://www.weshopinsurance.com/news/2026/04/how-much-is-workers-comp-for-hvac-contractrors-in-florida).
• NCCI 5538 (Sheet metal work, erection): $4.50 to $9.80.
• NCCI 5551 (Roofing, residential and commercial): $8.00 to $25.00. Texas 2026 loss cost for 5551 sits at 1.946 per $100, meaning final manual rates in the $4 to $6 range for roofers with decent mods (verified April 2026 via https://www.tdi.texas.gov/wc/regulation/rcomp.html).
• NCCI 5552 (Roofing, spray-applied foam): $10.00 to $28.00.

Real premium example: a 5-tech HVAC shop with $400,000 total payroll at a $4.50 per $100 rate pays $18,000 annually before experience modifier credits or debits. With an 0.85 mod it drops to about $15,300; with a 1.20 mod it climbs to $21,600.

3. Commercial auto

Commercial auto covers your vans, trucks, and service vehicles on a scheduled basis. Most shops buy business auto, not personal auto with a business endorsement, because the liability limits, hired and non-owned coverage, and claim handling are built for fleet use.

Typical 2026 per-vehicle rates:

• Light-duty van or pickup, clean motor vehicle records (MVRs): $1,800 to $3,600 per vehicle per year ($150 to $300 per month).
• Pickup with tow or heavy cargo: $2,400 to $4,800 per vehicle per year.
• Box truck: $3,000 to $6,500 per vehicle per year.

Logrock's 2026 commercial auto tracker puts the national average at $272 per vehicle per month ($3,264 annually), with high-litigation states (FL, LA, NY, NJ) running 30 to 100 percent above that baseline (verified April 2026 via https://www.logrock.com/commercial-truck-insurance/average-cost-commercial-auto-insurance/). New ventures (under 3 years operating) pay 30 to 50 percent more than the national average.

4. Umbrella (excess liability)

Umbrella sits on top of GL and commercial auto, providing excess limits above the underlying policies. It is add-on coverage, not standalone.

Typical 2026 umbrella pricing for contractors:

• $1M umbrella, solo or small shop: $500 to $1,200 annual.
• $2M umbrella, 5-10 tech shop: $1,400 to $3,200 annual.
• $5M umbrella, 15+ tech shop: $4,500 to $9,500 annual.

Umbrella is one of the highest-value dollars in the stack. A $2M umbrella at $1,800 per year gives you an extra $2M of limit above your $1M GL for roughly 10 percent of your total premium. We put umbrella on the short list for any shop pulling commercial contracts that require $2M or higher combined limits.

Cost by trade, solo to 15-tech shop

The table below shows GL-only annual premium ranges by trade, holding revenue, state mix, and claims history constant. Real quotes will fall inside these bands for the vast majority of shops. We pulled the numbers from Next Insurance instant quotes, Thimble binders, and Hiscox online quotes across representative states in April 2026.

Trade	Solo / 1-truck	5-tech shop	15-tech shop
HVAC (residential service)	$540 to $1,800	$2,100 to $4,500	$5,200 to $11,000
Plumbing (residential service)	$480 to $1,600	$2,100 to $4,200	$5,000 to $10,500
Electrical (residential service)	$540 to $1,800	$2,400 to $4,800	$5,500 to $11,500
Handyman / light contracting	$420 to $1,100	$1,900 to $3,800	$4,100 to $8,500
Roofing (residential)	$900 to $3,200	$4,500 to $8,200	$11,000 to $22,000
Commercial HVAC	$850 to $2,400	$3,600 to $6,400	$7,800 to $15,000
Commercial plumbing	$780 to $2,200	$3,400 to $6,000	$7,200 to $14,000

Roofing GL runs 2 to 3 times the plumbing or HVAC equivalent because height-related claims carry both higher frequency and higher severity. That ratio is consistent across Insureon, MoneyGeek, and The Hartford's published contractor books (verified April 2026 via https://www.moneygeek.com/insurance/business/contractor/cost/).

Cost by state, which states are highest and lowest

State matters more than most contractors realize. The same 5-tech HVAC shop pays twice as much in California as in Indiana.

Highest cost states (30 to 100 percent above national averages):

• California: Aggressive regulation, high claim frequency, expensive medical. Workers' Compensation Insurance Rating Bureau (WCIRB)-published 2026 rates for 5537 HVAC run $3.50 to $5.00 per $100 payroll; GL runs 40 to 70 percent above national medians (verified April 2026 via https://workerscompcost.com/states/california/).
• Florida: Workers comp got a 6.9 percent average rate cut for 2026 but roofing 5551 got smaller reductions because of sinkhole and storm claim severity. Commercial auto in FL runs 30 to 60 percent above national (verified April 2026 via https://www.insurancejournal.com/news/southeast/2025/11/18/848017.htm).
• New York: Labor Law 240 ("Scaffold Law") makes any fall claim nearly a strict-liability event. Roofing GL in NY can run 3 to 4 times the national median.
• Louisiana, New Jersey: Litigious legal environments. Auto claim costs drive commercial auto 40 to 80 percent above national.

Lowest cost states (20 to 40 percent below national averages):

• Indiana, Ohio, Wisconsin, Michigan: Rust Belt and Midwest shops see the lowest GL and workers comp rates. Ohio runs a monopolistic state fund (Bureau of Workers' Compensation, BWC), which removes price shopping but delivers structurally low rates.
• Tennessee, Kentucky, Arkansas: Low base rates, reasonable litigation environments.
• Utah, Idaho, Nebraska: Low payroll rates and light tort activity.
• Texas: Workers comp is optional, so many small shops go without. Those that carry coverage find relatively competitive rates.

What drives the premium up or down

Five levers explain most of the gap between a contractor's quoted premium and the average.

1. Revenue and payroll. GL is rated primarily on gross revenue, workers comp on payroll. Double revenue and, all else equal, your GL roughly doubles. MoneyGeek notes that shops over $500,000 revenue typically pay 2 to 3 times small-shop premiums (verified April 2026 via https://www.moneygeek.com/insurance/business/contractor/cost/).
2. Claims history. A single significant claim (greater than $25,000 paid or reserved) typically triggers a 15 to 40 percent premium increase at renewal and can force non-renewal. Two claims in three years almost guarantees surplus-lines pricing.
3. Experience modification factor (workers comp). Mods run from roughly 0.75 (best) to 1.50+ (worst) for most contractor shops. A 1.20 mod on a $15,000 manual premium costs you $3,000 extra per year compared to a 1.00 baseline. Mod management is a line item on serious shops.
4. Safety program and training documentation. Carriers credit shops with written safety programs, OSHA 10/30 training, fall-protection documentation (roofing), lockout-tagout (electrical), and vehicle telematics. 5 to 15 percent credits are routine for documented programs.
5. Deductible and limits. Raising your GL deductible from $500 to $2,500 typically saves 5 to 10 percent. Raising commercial auto comp/collision deductibles from $500 to $1,000 saves 8 to 12 percent. Moving from $1M/$2M GL to $2M/$4M adds 20 to 35 percent.

The full-stack cost, four shop profiles

The table below stacks GL plus workers comp plus commercial auto plus umbrella into a realistic 2026 total. Numbers are mid-range; your quotes will vary with state, trade, and risk profile.

Shop profile	GL	Workers comp	Commercial auto	Umbrella ($1M to $2M)	Annual total
Solo HVAC, 1 van, no employees	$1,100	n/a	$2,400	$700	$4,200
3-tech plumbing, 2 vans, $240K payroll	$2,400	$9,800	$5,400	$1,100	$18,700
10-tech HVAC, 7 vans, $700K payroll	$5,800	$24,500	$22,000	$2,400	$54,700
25-tech roofing, 14 trucks, $1.8M payroll	$17,500	$180,000	$42,000	$6,500	$246,000

The 25-tech roofing profile illustrates how workers comp dominates the stack at scale. Roofing payroll at $10 to $14 per $100 converts every payroll dollar into roughly 12 cents of insurance cost before any other coverage. That is the single highest-leverage line item for a growing roofing shop to manage.

How to reduce contractor insurance premium

Five tactics consistently move the needle. None are magic; all are mechanical.

• Bundle with a single carrier. Next, The Hartford, Travelers, and Nationwide pay 10 to 15 percent bundle credits. A $20,000 standalone stack drops to roughly $17,000 bundled.
• Document a safety program. Written program, toolbox talks, incident log, OSHA training certificates, fall-protection plans. Underwriters credit 5 to 15 percent at renewal.
• Manage your experience modification factor. Return injured staff to light duty fast, dispute questionable claims, pay small claims out of pocket when it makes sense. An 0.90 mod on a $25,000 manual premium saves $2,500 per year vs. a 1.00 baseline.
• Elect higher deductibles where you can self-fund small claims. GL at $1,000 or $2,500 typically pays back in 1 to 3 years. Commercial auto at $1,000 comp/collision is routine on clean-MVR fleets.
• Shop every 3 years, not every year. Annual shopping damages your market reputation; carriers notice repeat shoppers. Shop on a 3-year cycle or when triggered by a specific event (revenue growth of 40+ percent, mod change, coverage gap).

Avoid the cheapest-available default. Claim service and policy flexibility matter more on a serious claim than a 10 percent premium difference.

Named winners by scenario

Our picks reflect April 2026 quote data across 12 states for representative HVAC, plumbing, electrical, and roofing shops. See our cheapest general contractor insurance guide for the full carrier-by-carrier breakdown.

Cheapest for solo contractors (under $150K revenue, no employees): Thimble. Monthly or annual billing, instant binding, certificates issued in minutes. Quote GL at $420 to $900 for handyman and light-service trades, $540 to $1,800 for solo HVAC/plumbing/electrical. Tradeoff: claims service is transactional, and Thimble often non-renews after a claim. Our pick for true solo operators under $150K revenue.

Cheapest for 5-tech shops: Next Insurance. Next's bundle of GL plus workers comp plus commercial auto wins the 3-to-15-employee bracket more consistently than any other online-first carrier. Expect $2,100 to $4,500 GL plus $9,000 to $16,000 workers comp plus $5,000 to $9,000 commercial auto for a 5-tech HVAC or plumbing shop. However, Next declines or non-renews specialty classes (data center HVAC, crane-assisted roofing, high-voltage electrical). Our pick for standard residential and light commercial 5-tech shops.

Best value (not cheapest) for 10-plus tech shops: The Hartford. The Hartford consistently runs 10 to 20 percent higher than Next or Simply Business at this shop size, but delivers dedicated claims adjusters, loss-control consulting, and flexibility on manuscript endorsements commercial customers require. Our pick for 10-plus tech shops where a single bad claim would matter more than $3,000 a year of premium savings.

Best for high-risk trades (roofing, excavation, spray foam): Hiscox and Victor (underwriting through Chubb). Both write roofing and excavation at better rates than online-first carriers and do not reflexively non-renew after a single claim. Hiscox roofing GL runs $900 to $3,200 solo and $4,500 to $8,200 for 5-tech crews. Downside: more underwriting paperwork. Our pick for roofing and other fall-exposed trades above solo scale.

FAQ

How much does contractor insurance cost per year?

For a solo contractor carrying only general liability, expect $540 to $1,800 per year for HVAC, plumbing, or electrical, and $900 to $3,200 for roofing. For a 5-tech shop carrying the full stack (GL plus workers comp plus commercial auto plus umbrella), expect $12,000 to $25,000 per year in non-roofing trades, and $30,000 to $65,000 per year in roofing. A 15-tech shop typically spends $45,000 to $95,000 per year on the full stack, higher for roofing (verified April 2026 via https://www.insureon.com/construction-contracting-business-insurance/roofing/cost).

Why is roofing insurance so expensive?

Roofing premiums are 2 to 3 times higher than plumbing or HVAC for two reasons. First, fall-from-height claims have high severity; a single serious injury can hit policy limits. Second, claim frequency is higher because of the inherently exposed work environment. Roofing workers comp class codes (NCCI 5551, 5552) run $8 to $25 per $100 of payroll vs. $1.80 to $7.40 for electrical, HVAC, or plumbing. That payroll-rate gap flows straight to total cost.

Can solo contractors get cheaper rates?

Yes. Solo contractors with no employees skip workers comp entirely (except in a few states with owner-inclusion rules), which eliminates the largest line item. A solo HVAC contractor with one van can land a full GL plus commercial auto stack in the $3,000 to $5,000 per year range. Thimble, Next, and Hiscox all compete in the solo segment. Add a ghost workers comp policy ($400 to $800/year) if your commercial customers require proof of coverage.

How do I lower my workers compensation premium?

Three mechanical levers. First, manage your experience modification factor (mod): return injured employees to light duty fast, dispute questionable claims, and pay small claims out of pocket when it makes financial sense. Second, document a written safety program; carriers credit 5 to 15 percent. Third, correctly classify your payroll; misclassifying office staff as field labor overpays by thousands per year. See our workers compensation insurance for contractors guide for the full playbook.

Is it better to bundle coverages or buy separately?

Bundle in almost every case. Next Insurance, The Hartford, Travelers, and Nationwide all pay 10 to 15 percent bundle credits for packaging GL plus workers comp plus commercial auto with the same carrier. On a $20,000 stack that is $2,000 to $3,000 per year of savings. The downside of bundling: if one coverage non-renews, you may lose the bundle discount on the others. In practice that rarely happens for shops with clean loss history.

What is the difference between GL and professional liability cost?

General liability covers bodily injury and property damage your work causes. Professional liability (errors and omissions) covers design-related claims, specification mistakes, and advice you give that leads to financial loss. Most hands-on contractor work is GL-only. Shops doing design-build, engineering, energy audits, or formal system design should add professional liability, which runs $800 to $3,500 per year for contractor-sized shops. If you are just installing per plans someone else stamped, GL covers you.

Related guides

• General liability insurance for contractors: what GL covers, limits to carry, and endorsements that matter.
• Workers compensation insurance for contractors: class codes, mod management, and state rules.
• Commercial fleet insurance for contractors: per-vehicle cost drivers and fleet discount levers.
• Contractor insurance basics: the full-stack primer if you are starting from zero.
• Cheapest general contractor insurance: carrier-by-carrier pricing and who should buy on price alone.
• Independent contractor workers comp insurance: 1099 subcontractor coverage and ghost policies.