As a contractor in Washington, having proper insurance coverage is crucial for protecting your business, meeting state requirements, and securing contracts. This comprehensive guide breaks down the essential insurance coverages Washington contractors need, including costs based on our analysis of actual quotes from leading carriers.
Frame your protection with our guide to contractor liability business insurance.
General Liability Insurance for Washington 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 Washington contractors:
Average Annual Premiums by Revenue Size
| Revenue Size | Average Premium | % of Revenue | Favorable Rate | Potential Savings |
|---|---|---|---|---|
| $500K | $7,600 | 1.5% | $6,000 | 21% |
| $1M | $12,300 | 1.2% | $12,000 | 2% |
| $2.5M | $29,400 | 1.2% | $28,900 | 2% |
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 Washington Contractors
Worker’s compensation insurance in Washington is primarily managed through the state’s Department of Labor & Industries (L&I). Based on our analysis, Washington contractors typically pay around $3,545 per employee annually for workers’ compensation coverage.
Key premium factors include:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
For Washington contractors, typical workers’ compensation costs per $100,000 of payroll average $8,200, which is relatively competitive compared to other states.
Common contractor classification codes and their approximate rates in Washington:
- Code 5606 (Project Manager/Supervisor): $2-4 per $100 of payroll
- Code 5645 (Residential Construction): $7-11 per $100 of payroll
- Code 5403 (Commercial/Large Projects): $11-15 per $100 of payroll
Additional Business Insurance for Contractors in Washington
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
- Coverage for accidents, damage, and liability claims
- Protection extends to employees driving for business purposes
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
- Covers equipment during transport between locations
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 and inventory
- Additional coverage available for business interruption
4. Builder’s Risk Insurance
- Premium: 0.15-0.75% of project value
- Covers projects under construction
- Protection against fire, weather, vandalism
- Coverage for materials both on-site and in transit
- Can include delay in completion coverage
5. Contractor License Bonds
- Different bond amounts required based on project types
- Required for Washington contractor registration
- Typical cost: 1-3% of bond amount
- Premium varies based on credit and experience
- Protects customers against contractor misconduct
Get Washington Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for Washington 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 Washington’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 Washington contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.