As a contractor in Indiana, proper insurance coverage is essential for protecting your business, meeting state requirements, and securing contracts. This guide breaks down insurance costs and requirements based on our analysis of actual quotes from leading carriers.

Construct a safer business with our overview of commercial liability insurance for contractors.

General Liability Insurance for Indiana 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 Indiana contractors:

Revenue SizeAverage Premium% of RevenueFavorable RatePotential Savings
$500K$7,2001.4%$4,70035%
$1M$12,3001.2%$8,70029%
$2.5M$28,5001.1%$20,60028%

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 Indiana Contractors

Worker’s compensation insurance in Indiana is mandatory for contractors with employees. Based on our analysis, Indiana contractors typically pay around $2,335 per employee annually for workers’ compensation coverage, one of the more affordable rates nationwide.

For Indiana contractors, typical workers’ compensation costs per $100,000 of payroll average $5,560, making it one of the least expensive states for workers’ compensation insurance.

Key premium factors include:

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

Common contractor classification codes and their approximate rates in Indiana:

  • Code 5606 (Project Manager/Supervisor): $2-4 per $100 of payroll
  • Code 5645 (Residential Construction): $7-10 per $100 of payroll
  • Code 5403 (Commercial/Large Projects): $10-15 per $100 of payroll

Additional Business Insurance for Contractors in Indiana

1. Commercial Auto Insurance

  • Typical cost: $1,000-$4,000 per vehicle annually
  • Required for business-owned vehicles
  • Higher limits often needed for larger contractors
  • Covers accidents, damage, and liability while driving for work

2. Tools & Equipment Coverage

  • Cost: $1,500-$5,000+ annually for $15k-$50k coverage
  • Protects both owned and rented equipment
  • Coverage follows equipment to all jobsites
  • Includes theft, damage, and vandalism protection

3. Commercial Property Insurance

  • Protects offices, storage facilities, and workshops
  • Annual premiums: $2,000-$20,000+ based on property value
  • Coverage for fire, theft, vandalism, and natural disasters
  • Includes business personal property protection

4. Builder’s Risk Insurance

  • Premium: 0.15-0.75% of project value
  • Covers projects under construction
  • Protection against fire, weather, vandalism
  • Includes materials stored on-site or in transit

5. Contractor License Bonds

  • Guarantees compliance with state regulations
  • Required for certain projects and jurisdictions
  • Typical cost: 1-3% of bond amount
  • Premium varies based on credit and experience

Get Indiana Contractor Liability with ContractorNerd

ContractorNerd specializes in making insurance simple and data-driven for Indiana contractors. Our platform offers:

  • Instant online quotes from top-rated carriers
  • Side-by-side coverage comparisons
  • Contractor-specific expertise and guidance
  • Streamlined application process
  • Ongoing policy management support
  • Claims advocacy when needed

Our team of contractor insurance specialists understands Indiana’s unique requirements and can help you:

  • Optimize coverage levels based on your specific risks
  • Find competitive rates through our carrier network
  • Bundle policies for additional savings
  • Ensure compliance with state regulations and contract requirements

To get started with tailored quotes for your Indiana contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.