As a contractor in Georgia, having proper insurance coverage is essential to protect your business from the many risks in the construction industry. From property damage and injuries to lawsuits and natural disasters, contractors face diverse liabilities every day. Purchasing cost-effective, tailored insurance designed for your specific operations is key to safeguarding your company’s assets and future. 

This comprehensive guide will break down typical insurance costs for Georgia contractors across common policies like general liability, workers’ compensation, surety bonds, equipment coverage, and more. We’ll delve into the main factors impacting your premiums, provide benchmarking data for contractors of different sizes, and suggest smart strategies to help you secure favorable rates.

Understanding typical contractor insurance expenses in Georgia allows you to make informed decisions when choosing policies appropriate for your business. While your actual premiums depend on your unique attributes, this data offers helpful context so you can evaluate plans suitable for your needs.

Contractors in Georgia must have the right insurance coverage to protect their business. Insurance for contractors usually includes general liability coverage for contractors to safeguard against third-party claims and workers’ comp insurance for contractors to cover employee injuries sustained while working.

Key Factors Influencing Contractor Insurance Costs

Multiple important factors can influence insurance costs for contractors in Georgia:

Type of Work – Certain contracting fields like roofing, plumbing, electrical, and demolition are viewed as higher-risk and typically have higher insurance rates. The more hazardous the work, the more expensive the coverage.

Years in Business – Contractors who are new or just starting out often pay higher premiums until they establish a solid track record over several years. Insurance companies view extensive experience as an indicator of lower risk.

Claims History – If your business has filed frequent claims or past claims that were particularly costly, expect increased premiums. Too many claims can even make you uninsurable for key coverages. A clean claims history helps lower rates.

Coverage Limits – The higher the limits you choose for policies like general liability and workers’ compensation, the more expensive your premiums. You must weigh the cost versus the level of protection needed.

Number of Employees – Having more employees on your payroll increases exposure for workers’ comp and other policies. More employees means higher premiums.

Safety Record – Contractors with a history of OSHA violations, worksite incidents or poor safety practices typically pay higher premiums. Proactive safety reduces risk.

Annual Revenue – For certain coverages, higher annual revenue leads to pricier premiums, as it is seen as an indicator of elevated overall risk. Insurance companies use revenue to estimate the exposure. 

Insurance Provider – Rates can vary significantly between insurance carriers based on financial stability, reputation, customer service, ease of claims payment and local market competition.

Business Size – In general, larger contracting firms enjoy lower rates thanks to economies of scale and broader risk distribution. Small contractors tend to pay higher premiums.

Controlling these variables by maintaining stellar records, safety, qualifications and experience helps minimize insurance costs. Carefully selecting appropriate coverages also keeps premiums in check.

Benchmarking Insurance Costs for Georgia Contractors

The table below displays typical insurance coverages secured alongside sample annual premium ranges for small, medium and large contractors in Georgia. Use this data as a general benchmark when evaluating policies for your business, keeping in mind your unique attributes will impact your actual rates.

Well-managed contracting firms that work with specialized brokers to obtain tailored coverage from financially stable insurance carriers often achieve premiums in the lower end of these ranges. If anything seems unclear or you need guidance, we encourage you to consult with us.

CriteriaSmall ContractorMedium ContractorLarge ContractorXL Contractor
Worth of Tools$5K$10K$25K$50K
General LiabilityYesYesYesYes
Workers’ CompYesYesYesYes
Commercial AutoYesYesYesYes
Inland MarineYesYesYesYes
Georgia Average Total Insurance Premium

Next, let’s take a closer look at two of the most essential contractor insurance policies: general liability and workers’ compensation.

General Liability Insurance for Contractors in Georgia

Georgia Average Premiums for General Liability

General liability, often abbreviated as CGL, is a foundational coverage for contractors that protects your business if a third party alleges bodily injury, property damage or personal injury stemming from your work or operations. Typical general liability insurance premiums for contractors range from 1% to 5% or more of annual revenue, depending on specific risk factors.

– Small$1,000$2,900$1,700
– Medium$2,300$8,100$4,400
– Large$5,000$15,200$8,500
– Small$4,600$8,050$6,000
– Medium$14,600$21,900$16,400
– Large$24,800$36,200$32,400
– Small$900$3,500$1,700
– Medium$2,500$6,500$4,400
– Large$5,300$14,000$8,500
– Small$502$2,641$1,300
– Medium$1,220$6,117$3,400
– Large$2,768$11,380$6,400
– Small$1,600$4,300$2,400
– Medium$3,800$8,000$5,500
– Large$8,700$16,000$11,000
– Small$1,800$5,000$2,800
– Medium$4,900$10,900$7,600
– Large$10,800$24,600$16,300
General Contractor
– Medium$3,300$7,300$5,200
– Large$6,700$11,600$8,800
– XL$8,600$27,300$18,600

General liability policies help pay for expenses arising from incidents like:

– A subcontractor gets injured on your worksite due to unsafe conditions.

– A customer slips and falls in your office, sustaining injuries. 

– You damage a client’s property while performing work.

– A homeowner alleges shoddy workmanship by your team caused water damage.

– A member of the public claims your loose construction debris on the road caused their car accident.

– A client’s electric system is damaged during your plumbing repairs.

– You accidentally spray paint a neighbor’s home while painting your client’s exterior. 

Without adequate general liability coverage, you would bear the full brunt of legal fees, medical bills, repair costs and settlement amounts associated with claims and lawsuits. It protects your finances.

Here are key factors that influence general liability insurance costs for contractors in Georgia:

Type of Work – Certain contracting fields like roofing, plumbing, electrical, HVAC, and demolition are viewed as higher-risk and thus have higher base rates. The more hazardous the work, the more costly the coverage.

Annual Revenue – Insurance companies use annual revenue as a proxy for company size and exposure level. Contractors with higher revenue need larger liability limits and therefore pay higher premiums.

Claims History – Past general liability claims made against your business will cause your premiums to rise, especially if the claims were large and costly. Too many claims can threaten insurability.

Years in Business – New and startup contractors generally pay higher premiums until they build experience over time. Established contractors are seen as lower risk.

Risk Transfer – Taking steps to transfer or reduce risk, like requiring subcontractors to carry adequate insurance and having clients sign waivers, can significantly lower your costs.

Policy Limits – The higher the liability coverage limits you choose, the more expensive your premiums will be. Lower limits may expose you to uncovered losses from larger claims.

Policy Deductible – Choosing a higher deductible amount – the out-of-pocket amount you pay on a claim before insurance kicks in – can substantially reduce your premiums.

Insurance Provider – Premiums can vary amongst insurance carriers based on an insurer’s financial strength, reputation for claims payment, and local competitive landscape.

Following prudent business practices in terms of risk management, safety, contractual risk transfer, and record-keeping helps minimize general liability costs. Partnering with an experienced broker to shop around for quotes can unlock big savings.

Workers’ Compensation Insurance in Georgia

Georgia Average Premiums for Workers Compensation

Workers’ compensation insurance covers medical expenses and lost wages for employees who suffer job-related illnesses or injuries. For contractors, workers’ comp is mandatory in Georgia and other states. Premiums vary significantly based on risk factors:

– Small$1,293$2,828$1,616
– Medium$3,637$8,000$4,849
– Large$5,657$12,526$8,081
– Small$1,761$3,852$2,201
– Medium$4,953$10,896$6,603
– Large$7,704$17,059$11,006
– Small$4,000$8,749$5,000
– Medium$11,249$24,748$14,999
– Large$17,498$38,746$24,998
– Small$1,440$3,150$1,800
– Medium$4,050$8,910$5,400
– Large$6,300$13,950$9,000
– Small$13,868$30,337$17,335
– Medium$39,005$85,810$52,006
– Large$60,674$134,350$86,677
– Small$9,502$20,785$11,877
– Medium$26,723$58,791$35,631
– Large$41,569$92,047$59,385
General Contractor
– Medium$41,604$91,009$52,005
– Large$65,006$143,014$86,675
– XL$121,345$268,693$173,350

Payroll – Payroll directly impacts workers’ comp premiums, as it is one of the primary calculations. More payroll equals greater overall exposure.

Class Codes – The type of work conducted by employees is classified into risk categories, with electrical and roofing on the riskier end. Higher risk class codes have higher base rates.

Experience Mod – Contractors are graded on past loss history. Firms with fewer and less severe prior claims get an ‘experience credit’ reducing premiums. High claims lead to an ‘experience debit’ increasing premiums.

Industry Trends – If workers’ comp loss trends in the construction industry worsen, base rates for all contractors may rise. Improving loss trends can lower rates.

Safety Record – Contractors with strong safety programs, low injury rates, a drug-free workplace and safety training may qualify for significant discounts. Poor safety raises costs.

Premium Credits – In addition to safety, Georgia offers premium credits for things like timely claim reporting, pre-work screenings, and approved on-site clinics.

Policy Deductible – As with general liability, choosing a higher deductible reduces workers’ comp premiums but increases out-of-pocket costs per claim.

Insurance Carrier – The financial strength, customer service, claims handling and stability of your insurance company impacts overall costs.

Subcontractor Coverage – If you use uninsured subcontractors, you pay more in premiums to cover those worker exposures. Requiring subs to carry their own workers’ comp lowers your risk and costs. 

Controlling these variables through safety, hiring, training, and other business practices is key to lowering workers’ compensation costs. An experienced broker can offer guidance to help you optimize your policy.

Other Common Contractor Insurance Coverages 

In addition to general liability and workers’ compensation, Georgia contractors often carry supplemental insurance policies:

Commercial Auto Insurance – Covers vehicles used for business purposes. Typical annual premiums range from $2,000 – $5,000 per vehicle depending on things like vehicle type, radius of operations and driver history.

Inland Marine – Protects contractors’ tools and equipment when on job sites and in transit. Typical annual premiums range from $1,000 – $5,000 for coverage limits of $10,000 to $100,000.

Surety Bonds – Required by law for public works and many other projects as a form of guarantee. Typical premiums range from 1% – 3% of the bond amount based on financial credit.

Builders Risk – Covers construction projects themselves while under construction. Typical premiums range from 0.3% to 3% of the completed project value.

Umbrella Liability – Provides additional liability coverage above and beyond other policies like general liability and auto. Typical premiums range from $1,000 to $2,500 annually per $1 million in extra coverage.

Employment Practices Liability – Protects against various employment-related lawsuits and claims. Typical premiums for small contractors run $2,500 – $5,000 annually. 

Business Owner’s Policy (BOP – Bundles general liability, property coverage and more into one simpler policy. Premiums vary based on revenue, location and claims history.

Finding the Right Insurance for Your Contracting Business 

As a contractor in Georgia, it’s important to protect your livelihood with tailored insurance coverage. At the same time, overpaying for inappropriate or excessive plans will drag down your bottom line. 

We are here to help you strike the right balance. With dedicated expertise solely focused on contractor businesses, we guide you through selecting the right insurance for your operations without overspending.

Our trusted advisors take the time to understand your business and risks. We then provide you with multiple policy quotes tailored specifically for you from our network of top national and regional insurance carriers. 

Don’t leave your company exposed or pay too much for generic, one-size-fits-all coverage. Partner with us to protect your business the smart way. Get matched with your ideal insurance solution by starting a quick quote today.


– Typical contractor insurance costs in Georgia vary based on factors like your profession, experience, number of employees, safety record, and annual revenue.

– Small contractors may spend $10,000 to $30,000+ on essential policies like general liability, workers’ compensation and inland marine annually. 

– Mid-size contractors can expect to spend $40,000 to $200,000+ on policies such as general liability, workers’ comp, commercial auto, and umbrella liability each year.

– Large contractors often pay $500,000+ on coverages including general liability, workers’ compensation, commercial auto, builders risk and umbrella liability annually.

– Partnering with us connects you to expert advisors who provide tailored insurance solutions from top providers so you can protect your business without overpaying.

Don’t leave your company exposed or overpay for insurance. Let us match you with the ideal policies to safeguard your contracting business at competitive rates. Protect your assets properly by requesting a quick quote today.