For artisan contractors, trade contractors, and specialty contractors, excelling at your niche requires meticulous craftsmanship and flawless project execution. But protecting your business from unanticipated hazards goes beyond masterful workmanship. Safeguarding your company, employees, specialized equipment, and reputation necessitates comprehensive insurance tailored to your unique risks.
This guide will uncover typical insurance costs for contractors focused on specialized trades, variables impacting expenses, and strategies to secure affordable, adequate protection. We’ll explore coverages like general liability, workers’ compensation, equipment/tools, cyber, and more.
Niche contractors encounter diverse exposures requiring specialized insurance policies. While premiums fluctuate based on your trade, location, team size, and other attributes, here’s an overview of common contractor insurance coverages and typical costs. Learn more about the intricacies of Artisan Specialty and Trade Contractors Insurance to protect your artisan business with the right coverage.
What costs can I expect based on my Artisan, Specialty and Trade business characteristics?
Your insurance costs will grow as your business expands. Key factors like team size, years in business, revenue, and trade influence your coverage needs and premiums. Fledgling businesses with few employees, tools, and limited revenues have modest insurance requirements. But as you undertake more complex projects, hire staff, accumulate assets, and produce more revenue, your policies and premiums will expand.
A major factor is your claims history. The longer you function without claims, the more affordable your insurance. On the other hand, frequent claims result in higher premiums. Keep this in mind when evaluating your insurance needs.
Below is a summary of typical insurance programs by trade for varying sizes. These typical premiums are meant to illustrate a ‘middle of the road’ but partnering with a broker who can provide access to suitable carriers will enable you to get a tailored insurance program at a fair cost. Read more below to see more about ranges by specific line of business and trade.
| Small Contractor | Medium Contractor | Large Contractor | XL Contractor |
| $150K Revenue1 Employee | $500K Revenue3 Employees | $1M Revenue5 Employees | $2.5M Revenue10 Employees |
| GL [$1M / 2M]Workers’ CompAuto [$500K]Inland Marine [$5K] | GL [$1M / 2M]Workers’ CompAuto*2 [$500K]Inland Marine [$10K] | GL [$1M / 2M]Workers’ CompAuto*3 [$500K]Inland Marine [$25K]Umbrella [$1M] | GL [$1M / 2M]Workers’ CompAuto*5 [$500K]Inland Marine [$50K]Umbrella [$2M] |
The brokers in our network are highly skilled at helping contractors realize savings by moving to the right carriers and tailoring coverage to the specific contractor. If in doubt, we encourage you to explore your program with us. All you need to do is complete a brief form, and we’ll match you with a specialist who can guide you through the process.
Typical Artisan, Trade, and Specialty Contractor Insurance Policies and Premiums
General Liability Insurance for Artisan, Specialty and Trade Contractors
General liability (GL) insurance shields your business if a third party alleges bodily injury or property damage caused by your operations. For contractors, premiums often range from 1-3% of yearly revenue for $1 million per occurrence and $2 million aggregate limits.
Typical Limits: $1 million per occurrence/$2 million aggregate
Experts recommend at least $1 million in liability coverage. As your business continues to grow, explore an umbrella policy to offer additional liability protection.
Typical Premium: 1-3% of annual revenue
Here are average GL premiums by trade and revenue across all 50 states:
Here are sample GL premium ranges by trade and revenue across all 50 states:
| Low | High | Average | |
| Electrician | |||
| – Small | $1,046 | $2,660 | $1,710 |
| – Medium | $3,054 | $7,025 | $4,634 |
| – Large | $5,650 | $13,714 | $8,880 |
| Plumber | |||
| – Small | $4,312 | $10,829 | $7,246 |
| – Medium | $14,164 | $28,347 | $20,694 |
| – Large | $27,442 | $55,095 | $41,388 |
| Painter | |||
| – Small | $1,364 | $4,073 | $2,088 |
| – Medium | $3,190 | $7,461 | $5,380 |
| – Large | $5,696 | $15,372 | $10,512 |
| Landscaper | |||
| – Small | $1,098 | $2,966 | $1,810 |
| – Medium | $2,750 | $7,529 | $4,832 |
| – Large | $4,896 | $15,195 | $9,602 |
| Handyman | |||
| – Small | $2,026 | $4,869 | $3,316 |
| – Medium | $6,316 | $12,280 | $9,052 |
| – Large | $12,850 | $26,295 | $19,076 |
| Carpenter | |||
| – Small | $2,154 | $5,991 | $3,596 |
| – Medium | $6,634 | $13,190 | $9,714 |
| – Large | $13,264 | $29,465 | $21,024 |
| General Contractor | |||
| – Medium | $4,894 | $12,851 | $7,472 |
| – Large | $8,794 | $19,684 | $12,868 |
| – XL | $22,642 | $53,478 | $34,684 |
Variables impacting your GL insurance premiums include:
- Revenue: Higher revenues mean expanded operations and greater claim exposure. This prompts higher premiums.
- Location: Strict laws in your state can increase oversight expenses and premiums.
- Services Offered: Diverse construction capabilities create unique risks that uniquely influence premiums. Evaluate all services to understand related expenses.
- Claims History: Frequent past claims drive premiums upward. A clean record keeps GL affordable.
Workers’ Compensation Insurance Costs for Artisan, Specialty and Trade Contractors
This covers employee injuries or illnesses experienced on the job. Premiums hinge on your team’s tasks, sorted into class codes by the NCCI. With over 600 codes, this helps insurers accurately categorize and price policies. Contractor rates range from $1.5 to $30+ per $100 of payroll annually per worker with significant changes based on rate differences between class codes.
Typical Limits: State-dependent
Typical Premium: $1.50 to $30+ per $100 of payroll
Here are average WC premiums by trade and revenue across all 50 states:
Here are sample WC premium ranges by trade and revenue across all 50 states:
| Low | High | Average | |
| Electrician | |||
| – Small | $1,311 | $2,869 | $1,639 |
| – Medium | $3,689 | $8,115 | $4,918 |
| – Large | $5,738 | $12,705 | $8,197 |
| Plumber | |||
| – Small | $1,921 | $4,202 | $2,401 |
| – Medium | $5,403 | $11,886 | $7,203 |
| – Large | $8,404 | $18,609 | $12,006 |
| Painter | |||
| – Small | $2,089 | $4,569 | $2,611 |
| – Medium | $5,875 | $12,925 | $7,833 |
| – Large | $9,139 | $20,236 | $13,055 |
| Landscaper | |||
| – Small | $1,318 | $2,883 | $1,648 |
| – Medium | $3,707 | $8,156 | $4,943 |
| – Large | $5,767 | $12,769 | $8,238 |
| Handyman | |||
| – Small | $3,824 | $8,366 | $4,780 |
| – Medium | $10,756 | $23,663 | $14,341 |
| – Large | $16,732 | $37,048 | $23,902 |
| Carpenter | |||
| – Small | $3,343 | $7,312 | $4,178 |
| – Medium | $9,401 | $20,682 | $12,535 |
| – Large | $14,624 | $32,381 | $20,891 |
| General Contractor | |||
| – Medium | $11,473 | $25,097 | $14,341 |
| – Large | $17,927 | $39,438 | $23,902 |
| – XL | $33,463 | $74,097 | $47,804 |
Key Factors Influencing Contractor Workers’ Compensation premium:
Class Codes: Employees are grouped by job type and danger level. More hazardous roles prompt higher premiums. Examples of class codes below:
- 5645 – Residential Construction: Applies to most carpentry work on residential homes up to 3 stories. Includes framing, drywall, siding, etc.
- 5403 – Carpentry and Construction: Applies to construction exceeding 3 stories, including apartment complexes and commercial buildings with no height limit.
- 8227 – Construction- Permanent Yard: Applies to permanent contractor facilities for storage and equipment maintenance. For dedicated shop employees only.
- 5437 – Finish Carpenters: Specialize in interior trim work, floors, cabinets, counters. No rough carpentry.
- 5474 – Painters: Applies to interior and exterior painting of residential and commercial structures.
- 5221 – Concrete Construction: Concrete work including floors, foundations, driveways, sidewalks.
- 5190 – Electrical Wiring: Installation, repair, maintenance of electrical systems in homes and buildings.
- 3724 – Electrical Apparatus Installation: Installation and repair of miscellaneous building equipment and systems.
- 5183 – Thermostat Installation: Installation of thermostats, sprinklers, plumbing, pumps, fire suppression systems.
- 5183 – Plumbing: Installation and repair of pipes, fixtures, appliances related to water, gas, steam.
- 5537 – HVAC Contractors: Installation, service, repair of heating, ventilation, AC and refrigeration systems.
- – Class Codes 5348, 5437, 5478 – Flooring Installation: Installation of tile, carpets, laminate, wood, stone floors.
- 5551 – Roofing Contractors: Installation and repair of residential and commercial roofs.
- 6217 – Excavation & Grading: Site preparation, demolition, earth moving, pond/ditch digging.
- 0106 – Tree Service: Trimming, pruning, spraying, repairing trees. May include removal.
- 2702 – Tree Removal: Clearing land using power tools. Stump removal.
- 6217 – Tree Excavation: Tree/brush removal using heavy machinery.
State Laws: Each state controls workers’ compensation regulations including benefits, claims processes, and baseline insurance rates.
Experience Modifier: This number represents your safety record, starting at 1.0 then moving up or down based on claims. More claims drive the modifier and premiums upward.
Payroll Amount: A key factor is gross payroll, calculated as payroll / $100 * rate * experience modifier. Larger payrolls increase premiums.
Commercial Auto Insurance for Artisan, Specialty and Trade Contractors
This covers vehicles used for business purposes if an accident occurs. For contractors, premiums range from $1,000 to $4,000 per vehicle annually.
Typical Limits: $500k to $1M combined single-limit
Typical Premium: $1,500 to $4,000 per vehicle
Influencing your commercial auto premium:
- Number of Vehicles: More vehicles expand your accident exposure. Additional vehicles increase premiums.
- Vehicle Type: Larger vehicles like trucks and vans have greater damage potential, increasing costs.
- Driving Records: Drivers with accidents or citations raise your premium.
Construction Bonds for Artisan, Specialty and Trade Contractors
Surety bonds provide assurance contractors will satisfy their contractual duties. Requirements vary significantly by location and project. Typical bond sums range from $10,000 to $500,000 or more. Instead of paying the full bond amount upfront, contractors typically pay 1-3% as a premium. Meeting bond rules displays professionalism, reliability, and dedication to customer fulfillment.
Typical Limits: Project and Location Dependent
For example, California requires contractors to carry a $25,000 contractor bond to operate independently. Verify your compliance with all local and project mandates.
Typical Premium: 1-3% of Bond Amount [more for low-credit buyers]
Your bond premium depends on:
- Bond Amount: Higher sums equal greater premiums.
- Credit Score: Lower scores may indicate higher default risk, elevating your premium.
Builder’s Risk Insurance for Artisan, Specialty and Trade Contractors
This covers construction projects while underway in case of damage. For contractors, premiums typically range from 0.15% to 0.75% of the project value.
Typical Limits: Project value
Typical Premium: 0.15% to 0.75% of the project value
Your builder’s risk insurance costs depend on:
- Project Value: More expensive projects have greater claim exposure, increasing premiums.
- Project Duration: Longer projects may warrant higher premiums.
- Project Type: Complex or hazardous projects may boost costs.
Inland Marine (Tools & Equipment) Insurance for Artisan, Specialty and Trade Contractors
This protects tools and equipment onsite and in transit. For contractors, annual premiums often ~10% of the total limits, so if you’re insuring tools from $15K to $50K, expect to pay ~$1,500 to $5,000+ in annual premiums.
Typical Limits: $15k to $50k
Typical Premium: $1,500 to $5,000+ annually
Your inland marine premium is influenced by:
- Equipment Value: Pricier equipment prompts larger potential claim payouts from insurers, elevating premiums.
- Intended Use: Equipment utilized for hazardous applications may have higher premiums.
- Storage/Transport: Tools stored or moved in high-crime venues may cost more to insure.
Commercial Property Insurance for Artisan, Specialty and Trade Contractors
This insures buildings, offices, warehouses, and other business properties against damage from theft, fire, storms, vandalism and more. For contractors, annual premiums often range from $2,000 to $20,000+.
Typical Limits: Based on property value
Typical Premium: $2,000 to $20,000+ annually
Your commercial property premium depends on:
- Property Value: More valuable properties have greater claim potential, increasing premiums.
- Location: Areas prone to natural disasters or crime may increase costs.
- Construction Type: Fire-resistant buildings may qualify for discounts.
Umbrella Liability Insurance for Artisan, Specialty and Trade Contractors
This provides extra liability protection above your other policies’ limits. For an additional $1 million in coverage, contractors often pay $1,000 to $2,000+ in annual premiums. High-risk firms may pay more.
Typical Limits: $1M ($3M+ for larger contractors)
Typical Premium: $1,000 to $2,000+ annually
Your umbrella insurance costs are influenced by:
- Company Size: Large contractors have more exposure and claim potential, warranting greater premiums.
- Services: Specialized or hazardous work may increase costs.
- Location: State laws, risks, and cost of living sway pricing.
- Claims History: Repeated past claims result in higher umbrella premiums.
Employment Practices Liability Insurance for Artisan, Specialty and Trade Contractors
Employment practices liability insurance (EPLI) shields contractors from employment-related lawsuits alleging discrimination, wrongful termination, harassment, and other employee claims. For mid-sized contractor teams, yearly EPLI premiums often run $2,500 to $7,500+.
Typical Limits: $500k to $1M
Typical Premium: $2,500 to $7,500+ annually
Your EPLI premium depends on:
- Number of Employees: More personnel expands exposure to claims.
- Revenue: Larger payrolls and revenues pose greater risks.
- Claims History: Past claims increase future premiums.
- State Laws: Local regulations like wrongful termination laws affect pricing.
Cyber Liability Insurance for Artisan, Specialty and Trade Contractors
Cyber liability insurance is critical for contractors leveraging technology to manage operations. It defends against data breaches, hacking, and electronic theft. For mid-sized contractors, annual premiums often range from $1,000 to $5,000+.
Typical Limits: $500k to $2M+
Typical Premium: $1,000 to $5,000+ annually
Your cyber insurance costs depend on:
- Revenue: Bigger budgets appear more lucrative to hackers.
- IT Infrastructure: Strength of firewalls, encryption, and security affect pricing.
- Data Handled: Sensitive customer data may increase costs.
- Industry: Construction poses lower cyber risks than sectors like healthcare.
Strategies for Cost Savings
Beyond upholding robust safety protocols and a clean claims history, contractors can utilize additional techniques to reduce insurance expenditures:
- Increase Deductibles: Choosing higher deductibles lowers premiums, but boosts your out-of-pocket costs if a claim occurs. Evaluate risk tolerance before adjusting.
- Bundle Policies: Bundling multiple policies with one insurer often earns a multi-policy discount. Combine GL, commercial auto, inland marine, workers’ compensation, umbrella, and other coverages.
- Leverage Associations: Industry association memberships frequently provide access to discounted group insurance programs.
- Review Limits Annually: As your business evolves, re-evaluate insurance limits across policies to avoid over or under-insuring.
- Implement Safety Plans: Documented safety protocols like site inspections, equipment maintenance, materials handling procedures, and incident investigation showcase your risk management, potentially lowering premiums.
- Choose a Lower Loss Ratio Insurer: Insurers with loss ratios below 60% spend less on claims versus premiums collected, yielding possible savings.
- Watch Payroll Closely: Payroll directly affects workers’ compensation premiums. Keep payroll tightly aligned with exposure.
- Request Higher Deductibles: Ask about deductible options. Higher deductibles lower premiums but increase out-of-pocket claim costs.
Understanding the cost of insurance for contractors is crucial for businesses in the construction industry.
How Artisan, Specialty and Trade Contractors Get Favorable Premiums
In short, give our team at ContractorNerd a shot. At the heart of our service are two foundational pillars: technology and vetted specialists. The magic happens when we weave these elements together into a seamless experience.
Firstly, our cutting-edge technology isn’t just smart; it’s insightful. Engineered with the utmost precision, it delves deep to understand the intricacies of your contractor business. Utilizing intelligent algorithms, we go beyond surface-level information to expertly align you with the insurance specialist who truly “gets” you.
Secondly, our network of specialists isn’t broad; it’s specialized. Every insurance expert within our community is meticulously vetted and specializes in serving the contractor industry. This focus enables us to provide personalized matchmaking that’s attuned to the unique attributes of your enterprise. Forget dealing with multiple brokers who offer generalized advice. With us, you will collaborate with one dedicated specialist capable of addressing all your insurance requirements.
We’re not just committed to simplifying insurance for contractors; we’re devoted to revolutionizing it. Leveraging our cutting-edge technology and extensive industry-specific network, we offer tailored solutions that don’t just save you time and effort; they offer the targeted expertise you need to safeguard your business. Welcome to insurance, redefined.
Conclusion
Insurance is vital for contractor businesses looking to secure their company, employees, assets, and profits against unforeseen risks. Partner with an experienced broker to design an affordable, adequate insurance portfolio tailored to your company’s unique and evolving exposures. Keep your organization protected so you can satisfy customers and grow your specialized firm smoothly.