Drywall Contractor Insurance Cost & Quotes (2026)
Tailored and hassle-free drywall contractor insurance
CONTRACTOR-SPECIALIST INSURANCE PROVIDERS
Drywall contractor insurance costs $1,980 to $11,200 annually for a $500K operation. That five-fold gap comes down to something most drywall contractors never consider: whether your work stays inside the wall cavity or creates exposure that surfaces months after the GC closes out the project.
Carriers price drywall off completed operations history first, not crew size or years in business. Contractors who can demonstrate moisture barrier protocols and fire-rating compliance unlock rates that contractors without documentation never see, regardless of their safety record.
Class code 92338 covers standard drywall installation, but that classification assumes you’re hanging and finishing in controlled conditions. The moment you touch exterior sheathing, work in occupied spaces, or handle Type X fire-rated assemblies in commercial corridors, underwriters start adding exclusions or adjusting rates upward.
The state gap is real:
- Virginia: $2,890 for $500K operations (0.58% of revenue)
- California: $4,420 (0.88% of revenue)
- Pennsylvania: $9,870 (1.97% of revenue)
- Illinois: $8,340 (1.67% of revenue)
Pennsylvania’s rate isn’t a penalty for bad contractors. It reflects stricter liability requirements for fire-rating compliance in commercial construction baked into standard GL policies there.
Where the savings actually come from: Our 200+ quote analysis shows 35% to 65% premium reductions for contractors who document three things: moisture testing protocols before installation, fire-rating certifications for Type X work, and silica dust control programs. Florida showed the widest spread, with a $6,800 gap between contractors who had documentation and those who didn’t.
Before comparing costs, understand what drywall contractor insurance actually covers. Contractors doing crossover work should also review painter insurance and plasterers and stucco insurance classifications.
These benchmarks come from ContractorNerd’s analysis of drywall contractor insurance quotes. See methodology
General Liability Premium Ranges:
National Average
0.5% to 2.8% of annual revenue
Favorable Markets
0.3% to 0.9% of annual revenue
Potential Savings
35% to 65% of current GL premium possible when moving from average to favorable market rates
Workers’ Compensation Rates
Class 5445
Drywall Installation
$2.83 to $12.40 per $100 payroll
Six Major Cost Drivers
Work Setting and Height Exposure
Residential remodel work in occupied homes carries different liability than new construction. Commercial projects with ceiling heights above 12 feet trigger scaffold requirements that increase WC exposure. Carriers want to know: are you finishing single-story tract homes or hanging board in two-story commercial spaces?
Fire-Rating Scope
Type X drywall installations in commercial corridors, stairwells, and multi-family separation walls create professional liability exposure that standard residential work doesn’t. Contractors who regularly handle fire-rated assemblies face tighter underwriting scrutiny and higher completed operations limits requirements.
Moisture Exposure Work
Bathroom and kitchen installations where drywall meets wet areas account for a disproportionate share of claims. Contractors with documented moisture barrier protocols and greenboard installation procedures see materially better rates than those who treat every room the same.
Silica Dust Compliance
OSHA’s silica standard changed drywall underwriting. Carriers now ask about dust control equipment, respirator programs, and air monitoring. Operations with documented silica exposure plans pay less than those relying on basic dust masks and open-air sanding.
Crew Stability and Experience
WC rates compound when you’re constantly training new hangers on stilts and scaffolds. High turnover signals higher injury frequency to carriers. Operations that retain experienced crews and document safety training see experience mod improvements that reduce premiums year over year.
Geographic Location
Creates 400%+ GL variation alone. Arizona charges 0.4% of revenue for $500K operations while Massachusetts charges 1.8%. That’s $7,000 difference for identical businesses running the same crew sizes and project types.
Drywall Contractor General Liability Insurance Rates
Drywall Installation and Finishing (GL Code 5445)
Most drywall contractors perform hanging, taping, and finishing across residential and commercial projects. This classification covers standard interior drywall work, with rates varying based on project setting, fire-rating requirements, and whether work occurs in occupied spaces or new construction.
Revenue Level
National Average
Favorable Rate
Potential Savings
High % of Revenue
$50,000
$1,680
$980
42%
2.0% to 3.4%
$150,000
$3,120
$1,640
47%
1.1% to 2.1%
$500,000
$7,450
$3,280
56%
0.7% to 1.5%
*Potential savings represent the possible reduction when moving from average to favorable market rates
GL Risk Advantages
for Residential Work
Single-story ceilings reduce scaffold height and fall severity
Controlled indoor environment eliminates weather variables
Standard 1/2″ board avoids fire-rating compliance complexity
Smaller room footprints contain damage from any single incident
GL Risk Challenges
for Residential Work
Dust migration into occupied living spaces triggers cleanup claims
Moisture failures in bathrooms surface 6 to 18 months post-completion
Homeowner finish expectations create Level 5 quality disputes
Working around existing flooring and fixtures adds property damage exposure
GL Risk Advantages
for Commercial Work
Architectural specifications document exact scope and finish levels
Inspection sign-offs create paper trail of accepted work
Unoccupied spaces during construction eliminate personal property exposure
GC safety programs reduce your direct liability for jobsite incidents
GL Risk Challenges
for Commercial Work
Type X fire-rated assembly failures carry significant liability
Multi-story installations increase fall severity and WC costs
Finish work delays trigger claims from painters and flooring trades waiting on you
Higher ceilings mean longer scaffold setups and more exposure time at height
GL Risk Challenges
for Residential Work
Water damage claims from fixture failures
Mold allegations from undetected leaks
Limited public exposure during off-hours work
Lower average claim severity than new construction
for Commercial Work
for Residential Work
Controlled jobsite access reduces public exposure
General contractor oversight of safety protocols
Clear project specifications minimize scope disputes
Newer building materials reduce corrosion claims
Drywall contractors typically classify under 5445 with rates varying by state based on project mix and ceiling height exposure. Those who also perform metal stud framing may see payroll split across multiple codes, and contractors specializing in acoustic ceiling systems often get assigned to 5446 for that portion of work.
Drywall Contractor Insurance Cost By State
Most drywall contractors work across residential renovations and new construction projects. The data below reflects a typical blend of these operations, with rates varying based on ceiling height exposure, fire-rating requirements, and the proportion of occupied-space renovation work.
Explore different ways to view drywall contractor insurance costs across states. Click each layout option below to see your data presented in different formats.
Arizona
| $50K Annual Revenue | $1,570 |
| $150K Annual Revenue | $3,440 |
| $500K Annual Revenue | $11,130 |
| Favorable Premium ($50K) | $520 |
| Higher-End Premium ($50K) | $3,240 |
| Workers Comp Rate | $3.36 per $100 |
| Maximum Savings Potential | 86% |
The numbers that matter:
Lowest cost markets:
- Virginia: $740 to $4,580 across revenue tiers. Low litigation environment and strong residential construction market make this the most affordable state for drywall coverage.
- North Carolina: $870 to $4,920 with consistent pricing across carriers. The building boom here has attracted carrier competition without inflating claim frequency.
Highest cost markets:
- California: $2,290 to $14,680, driven by stringent seismic requirements and high labor costs that inflate claim settlements. A $500K operation here pays triple what the same business pays in Virginia.
- Washington: $1,520 to $11,470 with 74% potential savings. Moisture-related claims from the wet climate push base rates up, but significant room exists between carriers.
Best shopping opportunities:
- North Carolina: 85% potential savings ($4,180 at $500K revenue)
- California: 85% potential savings ($12,480 at $500K revenue)
- Arizona: 84% potential savings ($8,290 at $500K revenue)
- Michigan: 83% potential savings ($5,720 at $500K revenue)
Worst shopping opportunities:
- Washington: 74% spread, and the floor is still high due to moisture claim history
- Massachusetts: 74% spread with elevated base rates from union labor requirements on commercial projects
- Pennsylvania: 75% spread, but moderate base rates mean the dollar savings are smaller than percentage suggests
What Does Drywall Contractor Liability Insurance Cover?
Understanding GL Limit Structures
Your limit requirements depend on where your loads end up. Residential cleanout customers rarely ask for certificates. General contractors and municipal contracts always do.
$500K
Per Occurrence
$1M Limits
Aggregate
Adequate for residential remodel and small renovation work
Most GCs won’t accept this for commercial projects
Saves premium but locks you out of higher-margin jobs
$1M
Per Occurrence
$2M Limits
Aggregate
Standard requirement for GC subcontract work
Required for most commercial tenant improvement projects
Sweet spot for cost vs. access – covers 90% of available work
$2M
Per Occurrence
$4M Limits
Aggregate
Hospital, school, and institutional renovation projects
Multi-family and mixed-use developments often require this minimum
Usually structured as $1M primary plus $1M umbrella to reduce cost
Deductible Strategies
Drywall claims follow a different pattern than most trades. You’ll see frequent small claims from dust damage and minor property incidents in occupied spaces, plus occasional large claims from moisture failures or fire-rating issues that surface months later. This split matters for deductible decisions.
$0 Deductible
Covers the dust-in-HVAC and scratched-floor claims that happen regularly on renovation work
Carriers price this assuming you’ll file more frequently, which you might
Makes sense if most of your work is new construction where small claims are rare
$2,500 Deductible
Filters out nuisance claims while keeping you covered for the $30K+ moisture scenarios
Typical savings: 8-12% on GL premium
Requires keeping $2,500 accessible for claim response, not tied up in equipment payments
Specialized Drywall Contractor Endorsements
Completed Operations Extension
Standard GL includes completed operations, but drywall contractors should verify adequate limits. Moisture failures behind tile, mold from improper greenboard installation, and fire-rating deficiencies typically surface 6 to 24 months after project completion. This is where most expensive drywall claims originate, not on active jobsites.
Tools & Equipment Coverage
Basic GL endorsements cover hand tools, but drywall operations running automatic taping equipment, texture sprayers, and commercial scaffold systems should consider separate inland marine coverage. A $15,000 automatic taper walking off a jobsite hurts more than losing a mud pan.
How to Lower Your Drywall Contractor Insurance Cost
Strategic Shopping Timeline
Lead With Your Loss Runs, Not Your Revenue
Drywall underwriting hinges on one question: have you had moisture callbacks or fire-rating issues in the last five years? A $200K operation with clean loss runs gets better rates than a $500K operation with one mold claim. Pull your loss runs 120 days before renewal. If they’re clean, lead with them. If they’re not, know exactly what happened and what you’ve changed since.
Carrier Appetite Varies by Building Type
Some carriers want residential renovation drywall. Others want new construction tract work. A few specialize in commercial tenant improvement. Shopping without knowing which carriers want your specific project type wastes everyone’s time. Ask upfront: which of your markets has appetite for my primary work type? This filters the field before you fill out applications.
Workers’ Compensation Optimization Strategies
Document Your Actual Height Exposure
Carriers assume worst-case ceiling heights. If you primarily work in 8-foot residential ceilings, don’t get rated for 20-foot commercial work you don’t do. Photograph typical jobsites. Pull permit records showing building types. The difference between “mostly single-story residential” and “mixed commercial” can swing your WC rate 25% or more.
Exclude Overtime Premium at Audit
WC premium is calculated on payroll. But overtime premium, the extra half, is excludable in most states. Drywall crews running heavy overtime during busy seasons often overpay because auditors include gross wages. Review your audit worksheet. If overtime premium wasn’t backed out, you have money coming back.
Crew Retention Beats Safety Posters
Every new hanger you train is six months of elevated injury risk. Carriers know this. An operation that’s churned through 15 workers in three years looks completely different than one running the same four-person crew for a decade. If you’ve got tenure, document it. Stability signals lower claim frequency better than any written safety program.
Time Your Shopping to Your Mod Cycle
Experience mods use a three-year rolling window. That shoulder claim from 2022 drops out next year. Know exactly when your worst year ages out of the calculation and time your shopping to hit 90 days after. A mod improving from 1.12 to 0.97 is instant double-digit savings without changing anything about your operation.
General Liability Cost Reduction
A $150 Moisture Meter Solves a $50,000 Problem
The single best GL investment for drywall contractors is documenting substrate moisture before hanging board. Photograph pin meter readings on framing. Log humidity levels. This paper trail separates you from contractors who hang over wet studs and hope for the best. Carriers informally prefer contractors who prove they prevent the most common drywall claim.
Containment Photos Win Occupied-Space Disputes
Dust migration claims are growing faster than any other category in drywall GL. Board dust in HVAC ducts. Sanding residue on hardwood. Most of these become he-said-she-said disputes. Contractors who photograph their plastic barriers, negative air setup, and floor protection before starting work have evidence. Everyone else has arguments.
Your Sub Requirements Signal Your Standards
Every helper you bring on without coverage is exposure you absorb. But your certificate requirements also tell carriers something about how you run your operation. Documented standards for anyone touching your jobsites, even one-day helpers, looks different than grabbing whoever answers the phone. Put your sub requirements in writing and enforce them.
Push for Accurate Project Classification
Stop letting carriers rate you generically. New construction in empty buildings is different exposure than renovation work around existing fixtures and finishes. If 70% of your revenue comes from new residential tract work, make sure your classification reflects that instead of defaulting to a blended rate that assumes more renovation exposure than you actually have.
Methodology
Data Source
These benchmarks come from ContractorNerd’s analysis of over 200 drywall contractor insurance quotes across 11 major U.S. markets. As a licensed insurance agency, we have pricing data from carriers who specialize in interior finishing trades and understand the specific risk profile of drywall installation.
What the Numbers Represent
- General liability premiums: Actual market rates for drywall contractor GL coverage ($1M/$2M limits)
- Trade-specific pricing: How carriers rate drywall work separately from general carpentry or painting
- Revenue progression: How rates improve as a percentage of revenue as your business establishes a track record
Business Assumptions
- $50K revenue: Solo drywall hanger/finisher, subcontracting to GCs, primarily residential new construction
- $150K revenue: 1 owner + 1-2 employees, tape/texture/paint capabilities, commercial project experience
- $500K revenue: Established crew, metal framing + drywall, acoustic ceiling work, comprehensive dust control program
Risk Factors Unique to Drywall
Carriers assess these trade-specific exposures:
- Scaffold and ladder work: Elevated installation creates fall exposure
- Dust control compliance: Silica and joint compound dust require proper PPE and controls
- Fire blocking: Improper installation can create life-safety defects
- Completed operations: Cracks, nail pops, and texture failures appearing months after installation
- Property damage: Dust migration to finished areas, damage to existing surfaces
Combination Classifications
Many drywall contractors also perform metal framing, acoustic ceilings, or painting. Your premium may include multiple classification codes based on the services you actually provide. Pure drywall-only operations typically secure lower rates than combination contractors.
Limitations
These benchmarks reflect typical residential and light commercial drywall work. Fire-rated assemblies, high-rise construction, and clean room installations involve different risk profiles and pricing. Get quotes for your specific mix of work.