Understanding contractor insurance
Understanding what drives the number is more useful than comparing quotes, because the quotes are rarely for the same thing.
Roofing, excavation and anything at height price far higher than interior finish work. The single largest factor.
Workers compensation is priced per hundred dollars of payroll, so it scales directly with headcount and wages.
General liability is priced on revenue, so two contractors with the same headcount can pay very different amounts.
Every state has its own rates and rules. Working across a state line means reporting payroll there.
Claims and injuries follow you for years through your experience modification rate.
How much you sub out, and whether those subcontractors genuinely carry their own coverage, changes your exposure materially.
Contractors comparing quotes often compare the price and the limit, which are the two least informative numbers on the page. What differs between two similarly priced policies is the exclusions, the classifications, the deductible, and whether completed operations is included. A policy that is twenty percent cheaper and excludes the work you actually do is not cheaper. Compare the coverage, then the price, and be suspicious of a quote that arrives without questions about your trade and your payroll.
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Tell us your trade, payroll and the states you work in. A licensed specialist will come back with real numbers.
