How Much Does Siding Installation Insurance Cost? 2025 Rates

Siding installation firms in the U.S. generally spend between $720 and $1,440 per year on business insurance. That equals about $60 to $120 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Services offered – Installers who handle complex projects, hazardous materials, or large-scale commercial jobs face higher liability risks than those focused on standard residential siding.
• Business size – Solo contractors usually pay less, while larger companies with multiple crews face greater exposure and higher workers’ compensation costs.
• Location – Operating in urban areas, regions prone to natural disasters, or places with higher crime rates can raise premiums compared to lower-risk areas.
• Claims history – A clean record helps keep costs down, while past claims can increase rates.

Why It Matters

Understanding these cost drivers helps siding installation companies budget wisely and select coverage that matches their risks. With the right plan, they can protect their business, employees, and clients without overspending.

How Much Does Siding Installation Insurance Cost?

On average, siding installation companies spend between $720 and $1,440 annually on insurance. That equals about $60 to $120 per month. These figures are only estimates, and the actual premium depends on the details of your business.

Why Costs Differ

No two siding firms face the same risks. A small residential installer with no employees in a suburban area will typically pay less than a larger company specializing in commercial or industrial projects, which carry higher liability exposures.

Services and Risk Level

The type of services you provide plays a major role in determining costs. High-risk activities—such as siding installation on cliffsides, barns, or multi-story commercial buildings—raise liability premiums compared to simple residential repairs.

Property Value and Location

Where your business operates matters. Firms in urban areas with higher crime or lawsuit rates often pay more for liability coverage. The size and value of your property, tools, and equipment also influence commercial property insurance costs.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Services offered – Impacts professional liability and cyber insurance.
• Number of employees – More staff increases workers’ compensation requirements.
• Property size and value – Larger offices or costly assets raise property coverage costs.
• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Why This Matters

Understanding these variables helps siding installation firms estimate insurance needs more accurately and budget for the real costs of protecting their business. With the right coverage, you can safeguard your company, employees, and clients without overspending.

Average Siding Installation Insurance Costs For Coverage Types

When it comes to protecting your siding installation firm, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most siding installation firms need.

General liability insurance: $60 per month

Business owner’s policy: $85 per month

Professional liability insurance: $74 per month

Workers’ compensation insurance: $250 per month

Commercial auto insurance: $224 per month

Commercial property insurance: $78 per month

Cyber liability insurance: $145 per month

General Liability Insurance

The average cost of general liability insurance for siding installation is about $60 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a client slips on tools and cords that were left strewn on their property, this policy would help pay for their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business type (your services), location, office environment (if clients frequently visit your office), contract requirements, and previous claims history.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for siding installation businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, project scope, claims history, coverage limits, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $85 per month for siding installation firms.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office building, furnishings, and equipment. For instance, if a fire damages your computers and files, the BOP would help cover repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the size of your business, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements.

Average annual premiums by state:

Note: These estimates are based on average national Business Owner’s Policy (BOP) premiums for siding installation businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, property value, project scope, claims history, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for siding installation firms is about $74 per month.

Sometimes called errors and omissions, this type of insurance covers claims relating to errors, emissions, negligence, or other financial losses that a customer or client experiences because of the advice you gave. For example, if your team installs siding that has defects in it, and a client sues you, this type of coverage would protect you against those claims.

Typical policy limits are $1 million per claim, but higher limits are sometimes required by state laws or client contracts.

Cost depends on the size of your business, the services you offer, the number of years you’ve been in business, coverage limits, and claims history.

Average annual premiums by state:

Note: These estimates are based on average national Professional Liability Insurance premiums for siding installation businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, project scope, claims history, coverage limits, and insurer underwriting practices.

Cyber Liability Insurance

The average cost of cyber liability insurance for siding installation companies is $145 per month.

Cyber liability insurance covers the costs a siding installation company might incur after a cyber incident. This extends to lost income after a cyber attack, forensic investigations, data recovery costs, regulatory fines, and the costs of informing customers about the attack.

Siding installation firms can benefit from this coverage if they handle any sensitive data, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place.

Average annual premiums by state:

Note: These estimates are based on average national Cyber Liability Insurance premiums for siding installation businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, data sensitivity, claims history, coverage limits, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a siding installation company is around $250 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if your employee is injured working on a steep grade, falls off a ladder, and breaks their ankle, workers’ compensation would cover their hospital visit and part of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your office or on-site for each client), your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for siding installation businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, project scope, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for siding installation firms is about $224 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if one of your employees is driving a company truck to a residential job site and causes a car accident, this policy would cover the damages and any third-party claims.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services like driving to and from off-site consultations.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for siding installation businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, claims history, coverage limits, and insurer underwriting practices.

Commercial Property Insurance

The average cost of commercial property insurance for a siding installation firm, when purchased separately, usually runs $78 per month.

Commercial property insurance covers damage to the office building and its contents due to fire, theft, vandalism, or certain weather events. For example, if a fire destroys equipment like computers, this policy would pay for repairs or replacement.

Typical policy limits are based on the replacement cost value of the insured property, which could easily reach into the hundreds of thousands depending on your location, building size, and equipment investments.

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as professional liability or cyber protection.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Property Insurance premiums for siding installation businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property value, location risks (fire, theft, natural disasters), claims history, and insurer underwriting practices.

Siding Installation Business Insurance Costs By Provider

Siding installation business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for siding installation contractors, typically including general liability, workers’ compensation, commercial auto, and property coverage. Actual premiums will vary depending on factors such as company size, number of employees, type of siding work performed, location, claims history, and coverage limits.

What Factors Impact Your Siding Installation Insurance Costs?

Insurance premiums for siding installation companies are determined by underwriters who assess the overall risk profile of your business. Key factors such as services offered, location, property value, and claims history all play a role in shaping costs.

Type Of Services

Not all siding jobs carry the same risk. Residential projects on level ground with minimal traffic are generally lower risk, while commercial installations in busy downtown areas or high-rise buildings expose contractors to greater liability.

Location

Where your business operates matters. Firms in urban, high-crime, or flood-prone regions often pay more for property and liability coverage, while suburban or lower-risk areas may benefit from reduced rates.

Size Of The Operation

The number of employees, square footage, and annual revenue all affect premiums. Larger crews face greater exposure to liability claims and higher workers’ compensation costs, especially when staff travel frequently to job sites.

Property Value And Equipment

The size and value of your property, along with specialized tools and office equipment, directly affect commercial property insurance costs. Many siding companies also add inland marine coverage to protect tools and equipment used off-site.

Claims History

Frequent claims signal higher risk to insurers, which can raise premiums. A clean record often qualifies firms for discounts and lower rates.

Policy Limits And Deductibles

Higher policy limits provide stronger protection but increase premiums. Choosing a larger deductible can lower monthly costs, though it raises your out-of-pocket risk when claims occur.

Optional Endorsements

Add-ons such as business interruption, cyber liability, or hired/non-owned auto coverage tailor protection to your firm’s needs but also increase overall costs. These are especially important for companies with off-site projects or sensitive client data.

Insurance Provider

Rates vary among carriers. Some specialize in construction-related risks and may offer better pricing or flexible options for siding installation firms. Comparing quotes across providers can help secure the best deal.

How To Lower Your Siding Installation Insurance Costs

Running a siding installation company comes with significant expenses and risks, but your insurance premiums don’t have to be overwhelming. While coverage is essential, there are practical strategies to cut costs without sacrificing protection.

Bundle Policies Together

One of the easiest ways to save is by combining coverage. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation or business interruption coverage through the same provider can unlock further discounts while simplifying paperwork.

Ask About Discounts

Insurers often reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Strengthen Safety Measures

Accidents drive up costs for both you and your insurer. Regular site inspections, fall protection systems, clear labeling of damaged equipment, and consistent PPE checks all help reduce liability risks. Fewer incidents mean fewer claims, which lowers premiums over time.

Build A Safer Work Environment

Workers’ compensation costs can be managed by focusing on employee safety. Training crews on safe practices, preparing for outdoor hazards such as extreme weather, and maintaining clear safety protocols reduce injuries and claims.

Adjust Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just ensure your business can comfortably cover the out-of-pocket amount if a claim arises.