As a contractor in Rhode Island, protecting your business with proper insurance coverage is essential. This guide breaks down insurance costs and requirements based on our analysis of actual quotes from leading carriers.
Build your knowledge with our guide to contractor company insurance.
General Liability Insurance for Rhode Island 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 Rhode Island contractors:
Average Annual Premiums by Revenue Size
| Revenue Size | Average Premium | % of Revenue | Favorable Rate | Potential Savings |
|---|---|---|---|---|
| $500K | $10,300 | 2.1% | $7,700 | 25% |
| $1M | $16,800 | 1.7% | $14,000 | 17% |
| $2.5M | $48,700 | 1.9% | $33,000 | 32% |
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 Rhode Island Contractors
Worker’s compensation insurance is mandatory for Rhode Island contractors with employees. Based on our analysis, Rhode Island contractors typically pay around $4,790 per employee annually for workers’ compensation coverage.
For Rhode Island contractors, typical workers’ compensation costs per $100,000 of payroll average $9,030, which is moderate compared to other states.
Key premium factors include:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
Common contractor classification codes and approximate rates:
- Code 5606 (Project Manager/Supervisor): $3-5 per $100 of payroll
- Code 5645 (Residential Construction): $8-12 per $100 of payroll
- Code 5403 (Commercial/Large Projects): $12-17 per $100 of payroll
Additional Business Insurance for Contractors in Rhode Island
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 protection against theft, damage, and vandalism
3. Commercial Property Insurance
- Annual premiums: $2,000-$20,000+ based on property value
- Protects offices, storage facilities, and workshops
- Coverage for fire, theft, vandalism, and natural disasters
- Business interruption coverage available as add-on
4. Builder’s Risk Insurance
- Premium: 0.15-0.75% of project value
- Covers projects under construction
- Protection against fire, weather, vandalism
- Coverage duration matches project timeline
5. Contractor License Bonds
- Guarantees compliance with state regulations
- Required for certain projects in Rhode Island
- Typical cost: 1-3% of bond amount
- Premium varies based on credit and experience
Get Rhode Island Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for Rhode Island 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 Rhode Island’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 Rhode Island contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.