Contractor Insurance

How much does Contractors Insurance Cost?

Contractor insurance typically starts around $450 per year for a basic Commercial General Liability policy with a $2M limit, but most working contractors pay more depending on trade, project type, and revenue. Contractor premiums are contract-driven and trade-driven. The bigger your project pipeline and the more dangerous your trade, the higher your rate. Key cost factors:

• Type of Projects
• Number of employees
• Years of Experience & Projected Revenues
• Type of Equipment & Tools Owned

What does Contractors Insurance cover?

Contractors policies bundle liability, property/equipment, and project-specific coverages that meet the limits required in most master service agreements. Coverage typically includes:

• Commercial General Liability Insurance
• Builders Risk Insurance
• Tools & equipment Insurance
• Pollution Liability Insurance

This is an overview. All coverages, limits, and exclusions can only be confirmed by a licensed MyBrokers broker on a quote tailored to your specific policy.

What is a Certificate of Insurance (COI) and why does my GC require one?

A Certificate of Insurance, or COI, is a one-page document from your insurer confirming your policy is active, what coverage you have, and the limits in place. General contractors require it from every sub before they're allowed on site. Most commercial landlords, lenders, and clients also require one as a condition of the contract. We issue COIs the same day for active MyBrokers clients.

• Confirms your policy is active and lists your coverage limits
• Required by most general contractors before subs can start work
• Often required by landlords, lenders, and commercial clients
• Can be issued the same day for an active policy
• Additional insured endorsements can be added when a contract requires it

Are subcontractors covered under my Contractor Insurance?

Not automatically. Subcontractors you hire are usually expected to carry their own Commercial General Liability and any other coverages your contract requires. Your policy may cover their finished work under a 'completed operations' or 'subcontractor default' endorsement, but you should always collect a current Certificate of Insurance from every sub before they start. Your coverage exists for your business and your direct employees — subs are responsible for their own.

• Subcontractors typically need to carry their own CGL and any contract-required coverages
• Always collect a current COI from every sub before work starts
• Your policy may have a 'completed operations' endorsement covering finished sub work
• Subcontractor default coverage protects you if a sub goes out of business mid-project
• Listing your business as additional insured on a sub's policy adds another layer of protection

This is an overview. All coverages, limits, and exclusions can only be confirmed by a licensed MyBrokers broker on a quote tailored to your specific policy.