Quick Answer: A small general contractor pays a median of $162 a month, or $1,950 a year, for general liability and $196 a month for workers compensation, according to Insureon's 2026 data on firms with fewer than five employees. Trade moves the number more than anything else: electricians pay a median of $61 a month for general liability and roofers pay $317. Payroll, subcontractors, and the limits your contracts require do the rest.
What General Contractor Insurance Costs
Insureon publishes what small general contractors pay for each policy. These are its figures, not our quotes.
| Policy | Median per month | Median per year |
|---|---|---|
| General liability | $162 | $1,950 |
| Workers compensation | $196 | $2,348 |
| Commercial auto | $287 | $3,444 |
| Commercial umbrella | $140 | $1,680 |
| Builder's risk | $136 | $1,635 |
| Tools and equipment | $42 | $505 |
| Surety bond | $10 | $126 |
Source: Insureon, median premiums for general contractors that bought through Insureon, updated July 31, 2026. Most of those firms have fewer than five employees. General liability is for a $1,000,000 per occurrence, $2,000,000 aggregate policy with a $500 deductible. The builder's risk and tools and equipment figures are Insureon's medians across all construction trades.
Read these as a floor, not a forecast. A contractor with a crew of ten, a fleet, and commercial contracts will pay more than these medians, often far more, because general liability and workers compensation both rise with payroll and revenue. The fastest way to a real number is a quote on your own figures.
Contractor Insurance Cost by Trade
Trade is the biggest reason two contractors of the same size pay different prices. Lowest to highest, by general liability.
| Trade | General liability per month | General liability per year | Workers compensation per month |
|---|---|---|---|
| Electricians | $61 | $732 | $140 |
| Handyman | $81 | $978 | $108 |
| All construction trades | $89 | $1,069 | $175 |
| Carpenters | $94 | $1,124 | $201 |
| HVAC contractors | $101 | $1,213 | $182 |
| Plumbers | $147 | $1,768 | $179 |
| General contractors | $162 | $1,950 | $196 |
| Roofers | $317 | $3,808 | Not published by trade |
Source: Insureon, median premiums by trade for businesses that bought through Insureon, each page updated between July 21 and August 24, 2026. General liability is for $1,000,000 per occurrence and $2,000,000 aggregate. Insureon does not publish a workers compensation figure for roofers that differs from its construction-wide median. For the coverage behind the numbers, see roofing, excavation, and landscaping.
What Moves Your Price
Eight things decide where you land against those medians.
| Cost factor | How it moves the premium | What to have ready |
|---|---|---|
| Your trade | The largest single factor. In Insureon's data, roofers pay about five times what electricians pay for general liability. | A plain description of the work you do, and the work you turn down |
| Payroll | Workers compensation is priced per $100 of payroll, by job classification. | Payroll split by job duty |
| Revenue | General liability for contractors is usually rated on revenue or payroll. | Last year's revenue and this year's estimate |
| Subcontractors | Carriers rate the work you sub out. Uninsured subs can be charged to your policy at audit. | Annual subcontractor cost and their certificates |
| Limits | A contract or a license that calls for higher limits adds premium, usually through an umbrella. | The insurance section of your contracts |
| Claims history | Past losses raise both liability and workers compensation pricing. | Loss runs for the last three to five years |
| Trucks and drivers | Each vehicle and each driving record is rated. | Vehicle list, and each driver's license number |
| Your state | Workers compensation costs differ widely by state. Illinois sits above the national median. | Every state where you have employees |
Illinois workers compensation runs 23% above the national median
Oregon's state-by-state study ranks Illinois 13th highest in the country, at $1.34 per $100 of payroll against a national median of $1.09. Source: Oregon Department of Consumer and Business Services, 2024 premium rate ranking. That is an index across all industries, so read it as a comparison between states, not as a construction rate. More in our guide to what workers compensation costs.
The Limits You Are Told to Carry
Much of a contractor's premium is decided by someone else: the owner, the general contractor, or the city that issues the license. Chicago is the clearest example.
| Chicago general contractor license | General liability required, per occurrence |
|---|---|
| Class A | $5,000,000 |
| Class B | $3,000,000 |
| Class C | $2,000,000 |
| Class D | $2,000,000 |
| Class E | $1,000,000 |
Source: Chicago Municipal Code 4-36-090, last amended December 19, 2025. The policy must name the City of Chicago as additional insured on a primary, noncontributory basis and give the Commissioner 30 days notice before it is cancelled or lapses. This is a summary for insurance planning, not legal advice. Confirm current requirements with the Chicago Department of Buildings.
Higher limits are commonly built with a commercial umbrella or excess policy over the base policy, which is why the umbrella line appears in most contractor programs.
Illinois also requires employers to carry workers compensation, and the Illinois Workers' Compensation Commission says an employer that knowingly goes without can be fined up to $500 a day, with a $10,000 minimum. State license rules differ by trade: see what Illinois asks of roofing contractors, and our Illinois workers compensation page. A certificate of insurance is how you prove all of it.
Six Ways Contractors Lower the Bill
None of these is a trick. Each one removes something an underwriter or an auditor would otherwise charge for.
- Collect a certificate from every subcontractor before the job starts. At your premium audit, an uninsured sub can be billed to you as if the work were your own payroll.
- Check your payroll classifications. Office staff and estimators belong in different classes from the crew. Our guide to workers compensation class codes shows how that works.
- Protect your loss history. Your experience modification rate follows you for years, so a written safety program pays for itself.
- Ask whether a business owners policy fits. Smaller contractors with a shop or office can sometimes combine liability and property in one policy.
- Buy the limits your contracts call for, and no more by accident. Send us the insurance section before you bid so the price of the coverage is in your number.
- Have the account shopped. An independent agency can take the same submission to several carriers, and carriers price the same contractor very differently.
What we need to price your contractor insurance
A median tells you what other contractors pay. These nine items tell us what you will pay.
- The trade or trades you work in, and your license type if your trade has one
- Years in business and annual revenue
- Payroll, split by job duty
- What you pay subcontractors in a year, and whether you collect their certificates
- Your mix of residential and commercial work
- Each truck and trailer, and each driver
- The replacement value of your tools and equipment
- Loss runs for the last three to five years, if you have them
- The insurance section of any contract or license you need to meet
What Our Clients Say
Why Contractors Choose Pro Insurance Group
An Agency, Not a Carrier
We are an independent agency. We work for the contractor and shop the market on your behalf.
Markets for Your Trade
Carriers price the same trade very differently. We take your account to the ones that want it.
Contract Ready
Send us the insurance section before you bid. We match the limits and the certificate wording to it.
Certificates, Fast
Owners and general contractors want a certificate before you start. We turn them around the same day in most cases.
Looking for coverage instead of cost? Start with contractor insurance, or go straight to your trade: electricians, plumbers, HVAC, roofing, and excavation.
Contractor Insurance Cost FAQ
How much does general contractor insurance cost?
Insureon reports that small general contractors pay a median of $162 a month, or $1,950 a year, for general liability, and $196 a month for workers compensation, as of July 2026. Most of those firms have fewer than five employees. A larger contractor pays more, because both policies are rated on payroll and revenue.
How much is a $1 million general liability policy for a contractor?
Insureon's general liability medians are for a policy with $1,000,000 per occurrence and $2,000,000 in aggregate. On those limits, small general contractors pay a median of $162 a month, electricians $61, plumbers $147, and roofers $317. Your trade is the biggest reason the number moves.
Why do roofers pay more than electricians?
Insurers price each trade on its claims. In Insureon's 2026 data the median general liability premium is $61 a month for electricians and $317 a month for roofers, about five times as much. Roofing brings height, open roofs, and heat application, and the price reflects it.
How much is workers compensation for contractors in Illinois?
Workers compensation is priced per $100 of payroll, by job classification. Oregon's 2024 state ranking puts Illinois 13th highest in the country, at $1.34 per $100 of payroll across all industries, against a national median of $1.09. Construction classes are rated individually. Insureon's national median for small general contractors is $196 a month.
What insurance does Chicago require for a general contractor license?
The Chicago Municipal Code requires commercial general liability of at least $5,000,000 per occurrence for a Class A license, $3,000,000 for Class B, $2,000,000 for Classes C and D, and $1,000,000 for Class E. The City of Chicago must be named as additional insured on a primary, noncontributory basis.
What is a premium audit?
General liability and workers compensation are priced on an estimate of your payroll and revenue. After the policy year the insurer checks the real numbers and bills or refunds the difference. Uninsured subcontractors are a common audit surprise, so keep a certificate on file for every sub.
How can a contractor lower insurance costs?
Collect certificates from every subcontractor, classify payroll correctly, protect your loss history with a written safety program, and buy the limits your contracts call for. Then have the account shopped across carriers. Two insurers can price the same contractor very differently.
Is Pro Insurance Group an insurance company?
No. Pro Insurance Group is an independent insurance agency, not an insurance carrier. We work for the contractor, take the account to the carriers that write your trade, and place the policy with the company that fits. We are based in Elgin and Huntley, Illinois, and write business in 40+ states.
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Reviewed by Neal Fusco, VP Commercial Lines
25 years in insurance, including 16 at Zurich North America in workers' compensation managed care and claims.
Illinois licensed insurance producer #18515626. Figures verified October 2026.