Insurance is essential for protecting your contracting business in Delaware. This guide outlines key insurance coverage types and costs based on our analysis of actual quotes from leading carriers.

Construct your safety net with our guide to contracting insurance.

Insurance is essential for protecting your contracting business in Delaware. This guide outlines key insurance coverage types and costs based on our analysis of actual quotes from leading carriers.

General Liability Insurance for Delaware Contractors

General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Delaware contractors:

Revenue SizeAverage Premium% of RevenueFavorable PremiumPotential Savings
$500K$8,1001.6%$5,60031%
$1M$16,2001.6%$11,90027%
$2.5M$48,7001.9%$29,70039%

These premiums assume:

  • Clean claims history (5+ years without incidents)
  • Standard $1M/$2M coverage limits
  • Typical mix of residential and commercial work
  • Approximately 10% subcontractor costs

Worker’s Compensation Insurance for Delaware Contractors

Worker’s compensation insurance is mandatory for Delaware contractors with employees. Based on our analysis, Delaware contractors typically pay around $4,093 per employee annually for workers’ compensation coverage.

For Delaware contractors, typical workers’ compensation costs per $100,000 of payroll average $9,060, placing it in the mid-range compared to other states.

Key premium factors include:

  • Employee classification codes
  • Annual payroll
  • Claims history
  • Safety programs
  • Experience modifier rating

Common contractor classification codes and their approximate rates:

  • Code 5606 (Project Manager/Supervisor): Lower risk rates
  • Code 5645 (Residential Construction): Medium risk rates
  • Code 5403 (Commercial/Large Projects): Higher risk rates

Additional Business Insurance for Contractors in Delaware

1. Commercial Auto Insurance

  • Cost ranges from $1,000-$4,000 per vehicle annually
  • Required coverage for all business-owned vehicles
  • Typical limits range from $500K-$1M
  • Coverage includes liability and physical damage protection
  • Rates based on vehicle types and driver records

2. Tools & Equipment Coverage

  • Annual premiums typically $1,500-$5,000+ for $15K-$50K coverage
  • Protects both owned and rented equipment
  • Coverage follows equipment to all jobsites
  • Includes protection against theft, damage, and vandalism
  • Available as standalone policy or endorsement

3. Commercial Property Insurance

  • Annual costs range from $2,000-$20,000+
  • Protects offices, storage facilities, and workshops
  • Coverage based on property value and location
  • Protection against fire, theft, and natural disasters
  • Business interruption coverage available

4. Builder’s Risk Insurance

  • Premium costs 0.15-0.75% of total project value
  • Project-specific coverage during construction
  • Protects materials and structures under construction
  • Coverage for weather damage, fire, and vandalism
  • Terms match project duration

5. Contractor License Bonds

  • Bond requirements vary by project size and type
  • Required for specific project types in Delaware
  • Premium typically 1-3% of total bond amount
  • Rates vary based on credit and experience
  • Protects project owners and ensures compliance

Get Delaware Contractor Liability with ContractorNerd

ContractorNerd makes insurance simple and data-driven for Delaware contractors. Our platform offers:

  • Instant online quotes from top carriers
  • Coverage comparisons
  • Contractor-specific expertise
  • Streamlined applications
  • Policy management tools
  • Claims advocacy

Our team of contractor insurance specialists can help you:

  • Optimize coverage for your specific needs
  • Find competitive rates
  • Bundle policies for savings
  • Ensure regulatory compliance

Contact ContractorNerd today for tailored quotes and expert guidance on your contractor insurance needs.