For construction companies in Wyoming, having adequate insurance is absolutely essential to protect your business. As a contractor, you face a diverse range of risks on a daily basis – from property damage and employee injuries to lawsuits, cyber attacks, natural disasters and more. Purchasing cost-effective insurance policies tailored to your specific operations is crucial to fully safeguard your assets and ensure your company’s future success.
This comprehensive guide will uncover typical insurance costs for contractors across Wyoming, looking at popular policies like general liability, workers’ compensation, surety bonds, equipment coverage, and other essential protection. We’ll explore the key variables that impact your insurance premiums, provide benchmarking data for small, medium and large contractors based on revenue, and suggest proven strategies to secure the most favorable rates possible.
Gaining an in-depth understanding of typical contractor insurance expenses in the state of Wyoming will empower you to make smart decisions when evaluating policies appropriate for your business. While your exact premiums will depend on your unique attributes and risk profile, this data offers extremely helpful context and insight to inform wise insurance decisions that protect your company without overspending.
Wyoming construction professionals should prioritize proper insurance coverage. General liability insurance for contractors decoded is crucial for business protection. Workers compensation requirements for contractors guide safeguards your workforce. Explore our resources on essential insurance coverage for contractor businesses for more details.
Key Factors That Influence Insurance Costs for Contractors
Many elements factor into what contractors pay for insurance in the state of Wyoming. Being aware of these key variables that impact premiums allows you to minimize costs through preventative measures. Here are some of the most important factors that can influence insurance costs for contractors in Wyoming:
Type of Work – The specific trade a contractor is involved in has a major impact on insurance rates. Certain contracting work like roofing, plumbing, electrical, and other trades that involve heightened risk lead to higher premiums for general liability and workers compensation coverage. The more hazardous the work, the greater the insurance expenses required to cover the increased risks.
Years in Business – The length of time a contractor has been operating also affects insurance costs. Contractors who are new to the business typically pay higher premiums until they establish a solid track record over time. Insurance providers view extensive experience as an indicator of lower claims risk, so longer established businesses enjoy lower rates.
Claims History – A contractor’s past history of claims filed against them, especially claims that were costly, can significantly increase insurance premiums. Too many severe claims over a compressed period can even make a contractor uninsurable altogether. Maintaining a clean claims history helps lower insurance rates.
Coverage Limits – The level of coverage limits selected for policies like general liability insurance and workers’ compensation have a direct impact on costs. Higher liability limits or workers’ comp limits mean higher premiums. Contractors must weigh the benefits of greater protection against the higher expenses.
Number of Employees – Having a greater number of employees on payroll increases risk exposures for contractors when it comes to workers’ comp claims, liability claims, and other insurance costs. Rates tend to rise as the employee count grows due to increased risk.
Safety Record – Contractors with poor safety records, a history of OSHA violations, lack of safety training, and other shortcomings that increase risk can expect to pay higher insurance premiums. Conversely, those who invest in proactive safety measures reap lower premiums.
Business Size – In general, larger contracting firms have an advantage when it comes to insurance costs thanks to economies of scale and the broader distribution of risks over a larger revenue base. Smaller contracting businesses frequently pay higher premiums based on their scale.
Insurance Provider – Insurance rates can vary widely between different insurance companies. This is why shopping around for quotes and considering bid competitively between multiple insurers is so important for contractors seeking cost savings.
The most effective way for contractors to reduce their insurance expenses is to implement sound risk management practices in their business. Robust safety protocols, stringent hiring practices, training programs, and managing exposures through contract requirements are key to controlling risks and minimizing insurance costs. Shopping coverage competitively and optimizing your specific coverages also keeps premiums in check.
Small, Medium, Large Contractor Benchmarking in Wyoming
To provide a helpful general benchmark of typical insurance costs for contractors operating in Wyoming, the table below displays insurance premium ranges for small, medium and large contractors in the state alongside the key lines of coverage that should be included in a contractor’s insurance program.
It’s important to note that actual premiums paid can vary significantly from these averages based on the attributes of any given contracting business, such as their specific location within Wyoming, the nature of their operations and services provided, the strength of their risk management practices, their exposure management, safety track record, number of employees on payroll, their revenue size, the insurance deductibles they select, the specific insurance company they partner with, and other factors.
Contractors who take proactive steps to control risks, implement sound safety measures, choose appropriate policy limits, and secure coverage competitively with high-quality regional or national insurance carriers can often achieve premiums at the lower end of these ranges, or even below if they are best-in-class operators with minimal historical claims.
We encourage you to explore your specific insurance needs and get quotes from multiple providers to find the optimal solution for your business. The experts in our network specialize in contractor insurance and work with companies across Wyoming to evaluate their operations, understand their unique risks, and provide tailored guidance to put them on the best coverage program.
Typical Contractor Insurance Program in Wyoming
| 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 |
Typical Insurance Coverages
– General Liability
– Workers’ Compensation
– Commercial Auto
– Inland Marine (equipment & tools)
– Umbrella (larger contractors)
General Liability Insurance
General liability, often referred to as contractor’s liability insurance, is essential coverage the protects your business in the event a third party alleges their property was damaged or they suffered bodily injury as a result of your construction operations or contracting project work.
| Low | High | Average | |
| Electrician | |||
| – Small | $800 | $2,200 | $1,300 |
| – Medium | $2,900 | $4,350 | $3,400 |
| – Large | $5,400 | $8,500 | $6,600 |
| Plumber | |||
| – Small | $3,500 | $9,400 | $6,200 |
| – Medium | $14,000 | $21,000 | $16,800 |
| – Large | $27,500 | $42,100 | $34,300 |
| Painter | |||
| – Small | $900 | $2,800 | $1,500 |
| – Medium | $3,200 | $5,200 | $3,900 |
| – Large | $6,000 | $10,700 | $7,500 |
| Landscaper | |||
| – Small | $644 | $2,227 | $1,100 |
| – Medium | $2,147 | $4,075 | $3,000 |
| – Large | $4,295 | $7,904 | $6,000 |
| Handyman | |||
| – Small | $1,300 | $2,700 | $1,900 |
| – Medium | $4,400 | $6,600 | $5,800 |
| – Large | $9,400 | $15,100 | $12,400 |
| Carpenter | |||
| – Small | $1,500 | $3,900 | $2,500 |
| – Medium | $5,100 | $9,200 | $7,400 |
| – Large | $11,100 | $21,600 | $16,400 |
| General Contractor | |||
| – Medium | $3,300 | $5,600 | $4,700 |
| – Large | $6,200 | $16,000 | $10,000 |
| – XL | $15,100 | $37,400 | $25,500 |
For small to mid-sized contractors in Wyoming, typical general liability insurance premiums often fall in the range of 1-5% of annual revenue for $1 million insurance limits per occurrence. Actual premiums charged to any individual contracting business can vary based on the key factors outlined previously, such as risk classifications, years in businesses, safety record, etc.
Some example general liability premium ranges:
– Small contractor with $150,000 revenue – $1,500 to $7,500 annually
– Medium contractor with $500,000 revenue – $5,000 to $25,000 annually
– Large contractor with $1 million revenue – $10,000 to $50,000 annually
– Extra large contractor with $2.5 million revenue – $25,000 to $125,000 annually
Factors that Influence Costs for General Liability Insurance:
Type of contracting or trade type – Certain trades like roofing, plumbing, electrical, HVAC require higher premiums.
Revenue size – The annual revenue of a business dictates their premium to a large extent. Higher revenue leads to higher premiums in most cases.
Claims history – Past liability claims drive up premiums quickly, especially if the claims were frequent or severe. Too many claims makes insurers hesitant.
Years in business – Newer contractors are viewed as higher risk and charged higher premiums until they prove themselves over time.
Risk transfer – Insured’s who transfer some risk through contractual indemnity requirements with subcontractors or by requiring contractually that subcontractors carry adequate insurance of their own often benefit from lower premiums.
Policy limits – Contractors who opt for higher liability insurance limits will pay higher premiums. But insufficient limits could leave them exposed in the event of a costly claim.
Deductibles – Choosing a higher deductible (the amount the contractor pays on a claim before insurance coverage kicks in) can significantly reduce annual premiums.
Insurance company – The carrier’s financial strength, service reputation, and competitiveness in the contractor insurance space impacts premium pricing. Financially solid insurers with fair premiums are ideal.
Safety and risk management – Contractors with poor safety records and inadequate risk management pay higher premiums due to increased likelihood of claims. Proactive safety and management of risk helps secure the most favorable premiums.
Workers Compensation Insurance
Workers compensation insurance covers work related injuries and illnesses that arise for employees. For contractors, premiums can vary dramatically based on employee classifications, risk rating, past claims, state laws, and other factors. Wyoming is considered an affordable state relative to national averages when it comes to workers’ compensation costs.
| Low | High | Average | |
| Electrician | |||
| – Small | $961 | $2,102 | $1,201 |
| – Medium | $2,702 | $5,945 | $3,603 |
| – Large | $4,203 | $9,308 | $6,005 |
| Plumber | |||
| – Small | $1,874 | $4,100 | $2,343 |
| – Medium | $5,272 | $11,598 | $7,029 |
| – Large | $8,201 | $18,159 | $11,715 |
| Painter | |||
| – Small | $1,209 | $2,645 | $1,512 |
| – Medium | $3,401 | $7,482 | $4,535 |
| – Large | $5,290 | $11,714 | $7,558 |
| Landscaper | |||
| – Small | $1,200 | $2,625 | $1,500 |
| – Medium | $3,375 | $7,425 | $4,500 |
| – Large | $5,250 | $11,625 | $7,500 |
| Handyman | |||
| – Small | $1,295 | $2,833 | $1,619 |
| – Medium | $3,642 | $8,013 | $4,857 |
| – Large | $5,666 | $12,546 | $8,094 |
| Carpenter | |||
| – Small | $1,446 | $3,163 | $1,807 |
| – Medium | $4,067 | $8,946 | $5,422 |
| – Large | $6,326 | $14,007 | $9,037 |
| General Contractor | |||
| – Medium | $3,886 | $8,500 | $4,857 |
| – Large | $6,071 | $13,357 | $8,095 |
| – XL | $11,333 | $25,095 | $16,190 |
Typical workers’ comp insurance premiums for contractors in Wyoming may fall in these ranges:
– 1 employee – $500 to $1,500+ annually
– 3 employees – $1,500 to $4,500+ annually
– 5 employees – $2,500 to $7,500+ annually
– 10 employees – $5,000 to $15,000+ annually
However, actual premiums can be below or above these ranges based on the risks and operations of each individual business. The biggest factors impacting workers’ compensation premiums include:
– Payroll – The total payroll and number of employees directly impact total premiums. More employee payroll exposure leads to higher premium costs.
– Job classification – The type of work conducted by employees is classified by its risk level. For example, roofers are high risk and have much higher class codes than clerical occupations.
– Experience rating – Businesses are graded on their past workers’ compensation claims history over time. Those with fewer and lower cost claims benefit from an ‘experience credit’ on premiums, while excessive claims lead to an ‘experience debit’ increasing premiums year-over-year.
– Industry trends – Premium rates for the construction industry as a whole influence costs. If industry-wide loss trends take a turn for the worse, premium rates increase across the board.
– Safety record – Contractors who implement robust safety programs and experience lower than average injury rates can qualify for significant premium discounts for being ‘safety certified’. Lagging safety results in higher premium factors.
– Subcontractor coverage – Contractors who utilize subcontractors who do not carry their own workers’ compensation coverage often pay much higher premiums as they absorb that uninsured risk. Requiring subs to carry compliant coverage brings down a contractor’s premiums.
– State laws – The regulations and systems governing workers’ compensation at the state level have an enormous influence on costs in each state. State-run monopolies like Wyoming’s drive rates through government mandated price controls.
– Deductible programs – Choosing a higher deductible, which reduces premiums but increases the portion the contractor must pay on each claim, can provide substantial premium savings.
– Insurance company – The financial health, customer service reputation, and competitiveness of the insurance carrier factors into overall premiums paid. Companies known for stability and fair premiums are ideal.
Additional Common Coverages for Contractors
On top of general liability and workers’ compensation which make up the bulk of costs, most contractors in Wyoming also require several additional insurance policies:
Commercial Auto Insurance – Protects the business vehicles used by contractors and their employees for work purposes. Typical auto premiums range from about $1,000 – $3,000 per vehicle annually.
Inland Marine (Equipment & Tools) Insurance – Covers equipment and tools used by the contractor, whether on site at a project location or in transit between sites. Typical premiums range from about $750 – $2,500 annually for $10,000 to $25,000 in coverage limits.
Surety Bonds – Required by law for public works projects and many private jobs. Premiums vary from 1% – 3% of the total bond amount based on contractor qualifications and credit profile. Most public bids require a bid bond, performance bond, and payment bond.
Commercial Property Insurance – Safeguards business properties like offices, warehouses, showrooms etc. Typical premiums range from about $1,000 – $10,000 annually depending on location, safety features, limits, and reconstruction costs.
Employment Practices Liability – Provides coverage for employment related lawsuits and claims around harassment, discrimination, wrongful termination etc. Typical premiums range from $1,500 – $5,000 annually depending on risk factors. Limit options are critical.
Cyber Liability – Responds to data breaches, hacks, theft of electronic files, ransomware attacks and other IT security incidents a contractor may face. Premiums generally range from $500 – $2,500 annually depending on revenue size and coverage limits.
Umbrella Liability – Provides additional liability limits above a contractor’s primary general liability and auto liability policies. Adds an extra layer of protection. Premiums range from $750 – $1,500 per $1 million in additional coverage limits. Larger contractors carry larger umbrellas.
Partner With a Contractor Insurance Specialist
Are you a contractor in Wyoming interested in protecting your business while optimizing costs? The dedicated insurance specialists at ContractorNerd.com are here to help. We exclusively focus on contractor insurance across America, giving us in-depth knowledge of risks and coverages specific to your industry. Our experts take the time to get to know your company’s operations and recommend coverages tailored to your needs, then leverage our strong industry relationships to shop your insurance and deliver competitive quotes from multiple high-rated regional and national markets.
Don’t leave your business exposed or overpay for insurance. The independent agents in our network provide complimentary insurance reviews for contractors throughout Wyoming and across the country. We remove the guesswork to ensure you invest wisely to support the future success of your construction company. Get matched with a contractor insurance expert today by [completing this short form.](www.contractornerd.com)