For construction companies in Oklahoma, having the right insurance is crucial for protecting your business. As a contractor, you face diverse risks ranging from property damage and employee injuries to lawsuits and cyber attacks. Purchasing adequate, cost-effective insurance tailored to your operations can safeguard your assets and future.
This comprehensive guide will uncover typical insurance costs for Oklahoma contractors across popular policies like general liability, workers’ compensation, bonds, equipment coverage, and more. We’ll dive deep into the key variables impacting your premiums, provide detailed benchmarking data for small, medium and large contractors, and suggest multiple strategies to secure favorable rates.
Understanding typical contractor insurance expenses in Oklahoma allows you to thoroughly evaluate policies suitable for your business. While your exact premiums depend on your unique attributes, this data offers extremely helpful context to inform smart insurance decisions.
Oklahoma’s contracting industry demands proper insurance solutions. Vital components of liability insurance for contractors guard against common risks. Contractors workers’ compensation essentials are crucial for employee protection. For a comprehensive look at insurance options for contractor businesses, consult our resources.
Key Factors Influencing Insurance Costs for Contractors in Oklahoma
There are a number of important factors that can influence insurance costs for contractors operating in Oklahoma:
– Type of work – The specific type of contracting work being performed (construction, plumbing, electrical, roofing, etc.) greatly impacts the risk profile and therefore the insurance rates. More hazardous or complex work typically requires much higher insurance premiums to cover the increased risks.
– Years in business – Contractors who are brand new to the business often pay higher premiums until they take time to establish a solid track record. Insurance companies view experience as a key indicator of lower overall risk. The longer in business, the lower rates tend to be.
– Claims history – Any prior claims made against a contractor will often directly result in significantly increased premiums going forward. Too many severe or frequent claims can even make a contractor uninsurable altogether. Maintaining a clean claims history helps lower rates.
– Coverage limits – Higher levels of coverage for core policies like general liability insurance or workers’ compensation insurance mean considerably higher premium costs. Contractors must carefully weigh the cost vs the total amount of protection actually needed for their business. Minimum legal limits may not be adequate.
– Number of employees – Having a greater number of employees on payroll increases the overall risk exposure for things like workers’ comp claims or injuries. More employees equals greater exposure, so rates will climb higher as a result.
– Safety record – Contractors with poor safety track records or OSHA violations can expect to pay substantially higher premiums across multiple lines of coverage. Proactively improving safety and reducing incidents directly reduces risks and insurance costs.
– Business size – Larger contracting firms are often able to leverage economies of scale and broader risk distribution across their projects to qualify for lower rates. Smaller contractors unfortunately pay more in most cases due to lower bargaining power.
– Insurance provider – Insurance rates between providers, whether local independent agents or national insurance carriers, can vary quite significantly. Performing periodic competitive bidding is wise.
– Deductible amounts – Choosing higher deductibles decreases premiums substantially but increases the out-of-pocket costs you pay in the event of any covered claims. It shifts first dollar coverage to the policyholder.
– Risk transfer – Strategically transferring or reducing risks, via tactics like requiring all subcontractors to carry adequate insurance or by securing performance bonds on projects, may help lower premiums.
The key takeaway is that maintaining excellent standards, qualifications, safety practices, and choosing appropriate coverages helps minimize overall insurance costs. Controlling your business risk factors lowers insurance premium expenditures.
Small, Medium, Large Contractor Insurance Benchmarking in Oklahoma
The table below displays common definitions for small, medium and large contractors operating in Oklahoma alongside typical insurance coverages secured. Having this benchmarking info provides helpful context to understand how your costs compare to industry peers by size.
| Criteria | Small Contractor | Medium Contractor | Large Contractor | XL Contractor |
| Revenue | $150K | $500K | $1M | $2.5M |
| Employees | 1 | 3 | 5 | 10 |
| Autos | 1 | 2 | 3 | 5 |
| Worth of Tools | $5K | $10K | $25K | $50K |
| General Liability | Yes | Yes | Yes | Yes |
| Workers’ Comp | Yes | Yes | Yes | Yes |
| Commercial Auto | Yes | Yes | Yes | Yes |
| Inland Marine | Yes | Yes | Yes | Yes |
| Umbrella | No | No | Yes | Yes |
Do keep in mind that actual insurance premiums can fluctuate substantially based on your unique risk attributes like your geographic location, the services you offer, safety record, total number of employees and vehicles, payroll size, annual revenue, client industries served, and more. Contractors who secure properly tailored coverage with reputable carriers and very favorable policy terms may certainly achieve annual rates on the lower end of the premium ranges provided later in this guide.
If any questions arise as you review your specific insurance program, we strongly encourage you to discuss your policy in-depth with one of the highly skilled independent insurance brokers within our network. The specialists in our network focus exclusively on helping Oklahoma contractors identify the optimal carriers and tailored coverages to realize significant annual insurance savings. Their expertise provides immense value.
Detailed Overview of General Liability Insurance Costs in Oklahoma
General liability insurance, often referred to as GL coverage, is an essential coverage for all Oklahoma contractors to carry. General liability insurance protects your contracting business from financial loss should a third party allege or legally pursue property damage or bodily injury damages which they claim resulted from your work or business operations.
| Low | High | Average | |
| Electrician | |||
| – Small | $600 | $3,100 | $1,800 |
| – Medium | $1,500 | $6,800 | $3,600 |
| – Large | $3,300 | $12,600 | $6,700 |
| Plumber | |||
| – Small | $4,100 | $7,800 | $5,200 |
| – Medium | $13,000 | $19,500 | $15,900 |
| – Large | $29,700 | $38,610 | $31,200 |
| Painter | |||
| – Small | $1,100 | $5,800 | $1,800 |
| – Medium | $1,900 | $6,500 | $4,500 |
| – Large | $2,800 | $10,900 | $7,900 |
| Landscaper | |||
| – Small | $878 | $1,596 | $1,200 |
| – Medium | $2,580 | $4,778 | $3,300 |
| – Large | $4,367 | $10,300 | $6,800 |
| Handyman | |||
| – Small | $1,800 | $3,150 | $2,300 |
| – Medium | $6,200 | $9,300 | $7,000 |
| – Large | $11,500 | $16,600 | $14,200 |
| Carpenter | |||
| – Small | $1,900 | $7,500 | $3,200 |
| – Medium | $6,500 | $9,750 | $7,500 |
| – Large | $12,600 | $19,400 | $15,800 |
| General Contractor | |||
| – Medium | $4,900 | $11,700 | $7,500 |
| – Large | $9,300 | $16,000 | $12,600 |
| – XL | $20,700 | $37,400 | $27,800 |
Typical general liability insurance premiums for contractors in Oklahoma tend to range from about 1% to 5% or more of annual gross revenues, depending on the policy limits selected. For example:
Oklahoma Contractor Annual Revenue – Typical Annual GL Premium
– $150,000 Gross Revenue – $1,500 to $7,500 Per Year
– $500,000 Gross Revenue – $5,000 to $25,000 Per Year
– $1 Million Gross Revenue – $10,000 to $50,000 Per Year
– $2.5 Million Gross Revenue – $25,000 to $125,000 Per Year
These are general benchmarks, assuming $1 million per occurrence policy limits. Actual general liability premiums are dependent on these key factors:
Type of Work – The specific trade or scope being performed is very influential. Certain contracting work like roofing, plumbing, electrical, HVAC, and other trades are viewed as much higher risk exposures by insurers, thus premiums are considerably higher. Activities involving hazardous materials also drive up costs.
Annual Revenues – A contractor’s total annual gross revenues are strongly correlated to GL premiums. Insurance companies use this metric as a proxy for both business size and the risk level they are assuming. Greater revenues mean higher potential losses and therefore higher premiums.
Claims History – Contractors with a history of past liability claims filed against them will see noticeable increases in their GL premiums going forward, especially following severe or frequent claims. Too many claims can even make securing coverage difficult altogether. Maintaining a clean claims history helps lower rates over time.
Years in Business – Newer contractors are rightfully viewed as higher risk policyholders by insurers unless prior industry experience can be demonstrated. GL rates for unproven contractors tend to be higher at first until they establish a solid track record in business. Well-established contractors tend to enjoy lower rates.
Risk Transfer – Smart insured’s that proactively transfer or reduce risks via tactics like requiring all subcontractors to carry adequate GL coverage, securing performance bonds on projects, maintaining air tight contracts, collecting certificates of insurance, etc can qualify for lower premiums by reducing the insurer’s overall risk exposure.
Policy Limits – GL policies with higher liability limits or coverage extensions naturally have higher premium costs across the board. Lower policy limits do save money but also expose contractors to major losses falling outside limits should a catastrophic claim occur. Most experts suggest securing limits well above state minimums.
Deductibles – Electing higher deductibles serves to substantially reduce GL premiums, but shifts more financial responsibility onto the contractor for paying initial claim costs before coverage kicks in. This approach helps cash flow but is risky.
Insurer & Competition – The financial strength, reputation, service levels, and pricing of the actual insurance carrier providing coverage also factors into the policy costs. A very stable insurer charging fair premium rates will be cheaper overall than a small upstart carrier with limited funds to pay out claims. The level of competition in your regional insurance market also impacts pricing leverage.
Detailed Overview of Workers Compensation Insurance Costs in Oklahoma
Workers’ compensation insurance is legally required for employers to carry in Oklahoma. This critical coverage pays for employee medical bills, lost wages, rehabilitation services and other benefits associated with job-related illnesses or work injuries without regard to fault.
| Low | High | Average | |
| Electrician | |||
| – Small | $1,240 | $2,712 | $1,550 |
| – Medium | $3,487 | $7,672 | $4,650 |
| – Large | $5,425 | $12,012 | $7,750 |
| Plumber | |||
| – Small | $1,805 | $3,948 | $2,256 |
| – Medium | $5,077 | $11,169 | $6,769 |
| – Large | $7,897 | $17,486 | $11,281 |
| Painter | |||
| – Small | $1,890 | $4,133 | $2,362 |
| – Medium | $5,314 | $11,691 | $7,086 |
| – Large | $8,267 | $18,305 | $11,810 |
| Landscaper | |||
| – Small | $1,048 | $2,293 | $1,310 |
| – Medium | $2,948 | $6,485 | $3,930 |
| – Large | $4,585 | $10,153 | $6,550 |
| Handyman | |||
| – Small | $3,825 | $8,367 | $4,781 |
| – Medium | $10,758 | $23,668 | $14,344 |
| – Large | $16,735 | $37,056 | $23,907 |
| Carpenter | |||
| – Small | $3,757 | $8,219 | $4,697 |
| – Medium | $10,567 | $23,248 | $14,090 |
| – Large | $16,438 | $36,399 | $23,483 |
| General Contractor | |||
| – Medium | $11,474 | $25,100 | $14,343 |
| – Large | $17,929 | $39,443 | $23,905 |
| – XL | $33,467 | $74,106 | $47,810 |
For contractors, premiums for workers’ compensation insurance in Oklahoma can vary significantly based on these key attributes:
Oklahoma Contractor Annual Payroll – Typical Annual Workers’ Comp Premium
– $150,000 Annual Payroll – $3,000 to $9,000 Per Year
– $500,000 Annual Payroll – $10,000 to $30,000 Per Year
– $1 Million Annual Payroll – $20,000 to $60,000 Per Year
– $2.5 Million Annual Payroll – $50,000 to $150,000 Per Year
Payroll Size – The total annual payroll and number of employees are major variables factored into premium calculations. Larger payrolls equal greater overall risk driving premiums higher. Employees doing hazardous work also increase costs.
Job Classifications – The specific type of job duties performed by employees is classified based on risk. Roofers for example have significantly higher premium rates than clerical staff. The mix of classifications impacts averages.
Claims History – Contractors are graded based on past loss history. Those with fewer past claims and lower claim costs benefit from an ‘experience credit’ applied to reduce premiums. High claims lead to an ‘experience debit’ increasing premiums sometimes drastically.
Safety Record – Contractors with strong safety programs, low injury rates, and no major OSHA citations can qualify for valuable premium discounts for maintaining these risk reducing standards. However, poor safety leads to far higher premiums.
Premium Discounts – Things like workplace safety programs, new worker orientation, employee participation, transitional duty practices, and other proactive efforts may qualify contractors for reduced premiums via multiple available discounts.
Deductible Programs – Just like with GL coverage, paying a higher deductible amount per claim serves to substantially lower workers’ comp premiums but it increases your potential out-of-pocket costs should claims occur. Many deductible options exist.
Insurance Company – The reputation, financial strength, customer service, and pricing of the actual insurance carrier has significant impact on workers’ comp costs. Some companies offer premium dividends as well to reward positive loss experience.
Subcontractor Coverage – Knowingly utilizing uninsured subcontractors results in higher premiums on contractors to pick up exposures. Requiring subs to carry their own valid workers’ comp coverage keeps costs lower.
Overview of Additional Key Contractor Insurance Coverages
Beyond core general liability and workers’ compensation policies, additional insurance coverage are required or recommended to eliminate coverage gaps and provide critical protection.
Commercial Auto Insurance
Covers all vehicles used for business purposes from liability claims. Typical premiums range from $1,000 to $3,000 per vehicle annually depending on factors like vehicle type, radius, driver safety, and more.
Commercial Property Insurance
Protects your business properties like offices, warehouses, job site trailers, and storage yards from damage. Typical premiums range from $1,000 to $15,000+ annually depending on property values, locations, and details of coverage.
Inland Marine Insurance
Inland marine insurance covers construction tools, equipment, machinery, and supplies being used on job sites or in transit. Typical premiums range from $750 to $2,500 annually for $10,000 to $25,000 in covered equipment costs.
Cyber Liability Insurance
This increasingly vital coverage protects against losses and expenses arising from data breaches, hacking incidents, malware attacks, and other electronic threats faced by contractors today. Typical premiums range from $500 to $2,500+ annually.
Employment Practices Liability
Defends employers against various employee lawsuits alleging discrimination, harassment, wrongful termination, etc. Typical premiums range from $1,500 to $5,000 annually for contractors.
Surety Bonds
Required by law for public works. Also helps contractors demonstrate financial strength. Typical premiums range from 1% to 4% of the total bond amount. Depends heavily on personal and business credit factors.
Umbrella Liability Insurance
This supplemental coverage provides contractors with additional liability limits above underlying policies. Typical premiums range from $750 to $1,500+ annually per $1 million in additional protection. Common for larger contractors.
Partnering With ContractorNerd.com For Your Oklahoma Insurance
Finding adequate insurance protection at affordable rates continues to be a major challenge for contractors across Oklahoma. Don’t just settle for basic quotes from local agents who lack true construction expertise. For specialized coverage and premium savings, partner with ContractorNerd.com – your dedicated resource for contractor insurance.
Our firm offers these valuable benefits when securing your insurance:
Industry Expertise – Our extensive network is comprised of independent insurance brokers who focus exclusively on contractors within the construction realm. Their specialized expertise translates into tailored solutions and significant savings for your business.
Access to Leading Carriers – Over the years we have cultivated strong relationships with A+ rated national and regional insurance carriers. This provides our clients with access to high-quality coverage options from the top providers serving the contractor insurance market today. We simplify the carrier search.
Cost Savings – Our independent brokers have the knowledge and carrier access to shop multiple markets in order to find you the optimal blend of coverage, premium savings, risk control services, and deductibles for your budget and business model. We find ways other agents can’t.
Don’t leave your contracting business inadequately protected or overpaying for insurance. Partnering with ContractorNerd.com ensures you make smart, data-driven contractor insurance decisions that protect your company and bottom line. Get an obligation free quote today!