Contractor Insurance Cost Estimator
Estimate your annual contractor insurance costs including General Liability, Workers' Compensation, and Tools & Equipment coverage based on your trade, revenue, and workforce size.
Formulas Used
General Liability Premium
GL = (Revenue ÷ 1,000) × GL_Rate × Limit_Multiplier × State_Factor × Claims_Multiplier
Minimum floor: $500. GL rates per $1,000 revenue range from $0.55 (cleaning) to $2.50 (roofing).
Workers' Compensation Premium
WC = (Revenue × 0.35 ÷ 100) × WC_Rate × State_Factor × Claims_Multiplier
Estimated payroll = 35% of revenue. WC rates per $100 payroll range from $3.50 (cleaning) to $22.00 (roofing). Minimum: $300 × number of employees.
Tools & Equipment Premium
T&E = Tools_Value × 2.5%
Minimum: $150 when tools value > $0. Based on inland marine / tools floater annual rate.
Total Annual Cost
Total = GL + WC + T&E
Assumptions & References
- GL rates are based on ISO Commercial Lines Manual class codes and industry benchmarks for contractor trades (IRMI, Insureon, Next Insurance 2023–2024 data).
- Workers' Comp rates approximate NCCI class code averages; actual rates are filed by state and vary significantly.
- Payroll is estimated at 35% of annual revenue — a common rule of thumb for labor-intensive trades; adjust if your actual payroll is known.
- Tools & Equipment rate of 2.5% annually is a standard inland marine floater benchmark for contractor equipment under $500K.
- State risk factors: Low (0.85×) = TX, IN, NC; Average (1.00×) = most states; High (1.25×) = CA, NY, FL, IL — reflecting filed rate differentials.
- Claims surcharges: 1 claim +15%, 2 claims +35%, 3+ claims +60% — consistent with experience modification factor (EMR) impacts.
- GL limit multipliers: $1M = 0.85×, $2M = 1.00×, $5M = 1.30× — based on ISO increased limits factors.
- This tool does not include Professional Liability (E&O), Commercial Auto, Umbrella, or Builder's Risk coverage.
- All estimates are for budgeting purposes only. Consult a licensed commercial insurance broker for actual quotes.