How Much Does Flooring Contractor Insurance Cost? 2025 Rates

In 2025, U.S. flooring contractors can expect to pay between $720 and $1,080 annually for comprehensive business insurance, averaging $60 to $90 per month. The primary cost drivers are location, coverage limits, number of employees, type of flooring work, and the use of subcontractors.

How Much Does Flooring Contractor Insurance Cost?

The average flooring contractor in the U.S. pays between $700 and $1000 per year for a full business insurance package. That’s about $60 to $90 per month. But this is just a general estimate; the actual cost can be very different based on your specific business.

Every flooring contractor faces different risks, so there’s no one-size-fits-all insurance price. For example, a small contractor who works alone on basic residential carpet jobs will pay much less than a larger company with several employees installing hardwood in commercial buildings.

Things like the type of flooring you install, your business size, equipment value, and where you work can all affect your business insurance cost.

For instance, contractors working in cities with higher rates of theft or lawsuits may pay more for liability coverage. And if your jobs involve heavy tools or working in high-risk areas, your premiums may be higher compared to someone doing low-risk flooring in small homes.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your flooring contractor business.

Average Flooring Contractor Insurance Costs For Coverage Types

When it comes to protecting your flooring contractor business, 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 flooring contractors need.

• General liability insurance: $60 per month
• Contractor’s tools and equipment insurance: $16 per month
• Workers’ compensation insurance: $189 per month
• Commercial auto insurance: $179 per month
• Commercial umbrella insurance: $65 per month
• Surety bonds: $13 per month

General Liability Insurance

The average cost of general liability insurance for a flooring contractor is about $60 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if you’re installing hardwood flooring in a client’s home and accidentally damage their expensive furniture, this policy would help pay for the repair or replacement costs and cover any legal fees if the client sues.

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

Factors that influence the cost include the size of your flooring business, your location, the type of flooring work you do, your past claims history, and whether you take on high-risk projects like commercial or high-rise installations.

Contractor’s Tools And Equipment Insurance

The average cost of a contractor’s tools and equipment insurance for a flooring contractor is about $16 per month.

Contractor’s tools and equipment insurance is a type of coverage that protects the tools and machines you use for work if they get lost, stolen, or damaged. For example, if your table saw, floor sander, or tile cutter is stolen from your work truck, this insurance would help pay to replace them.

The cost of a contractor’s tools and equipment insurance depends on how much your tools are worth and what kind of work you do.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a flooring contractor is around $189 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if one of your crew members hurts their back while lifting heavy flooring materials, workers’ compensation would pay for their medical treatment 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, your claims history, and any implemented safety programs.

Commercial Auto Insurance

The average cost of commercial auto insurance for flooring contractors is about $179 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if your work van is involved in an accident while transporting flooring materials to a job site, this policy would cover the repair costs and any third-party damages or injuries.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, whether deliveries are local or long-distance, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for deliveries.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for flooring contractors is about $65 per month.

Commercial umbrella insurance gives your business extra protection when your other insurance policies (like general liability or auto insurance) reach their limit. It helps cover big claims that go beyond what your main policies will pay. For example, if a flooring job causes major water damage to a client’s entire home and the repair costs go over your general liability policy limit, umbrella insurance can help cover the extra amount, so you don’t have to pay out of pocket.

The price of commercial umbrella insurance mainly depends on how much coverage you choose to buy.

Surety Bonds

The average cost of surety bonds for flooring contractors is about $13 per month.

Surety bonds are like a promise or guarantee that a contractor will do the job right and follow the rules. If the contractor doesn’t complete the work or breaks the contract, the bond helps pay the client or fixes the problem.

The cost of a surety bond primarily depends on the size of the bond.

What Factors Impact Your Flooring Contractor Insurance Costs?

Flooring contractor insurance costs are carefully calculated by insurance companies based on your business’s level of risk. Things like the type of flooring you install, your location, business size, and past claims all affect how much you’ll pay for coverage.

Type Of Flooring Work

The kind of flooring you install affects your risk. Contractors working with hardwood, tile, or large commercial projects usually pay more than those doing basic carpet or residential jobs.

Business Location

If you work in areas with high crime, heavy traffic, or strict local laws, your insurance may cost more. Contractors in low-risk, suburban areas may pay less.

Size Of Your Business

The more employees, vehicles, and projects you have, the higher your chances of a claim. Bigger businesses usually pay more, especially for workers’ comp and commercial auto insurance.

Value Of Your Tools And Equipment

If you use expensive tools or machinery like floor sanders, tile cutters, or work vans, your property insurance will cost more to cover those items.

Policy Limits And Deductibles

Choosing higher coverage limits gives you better protection but raises your premium. Picking a higher deductible can lower your monthly cost but means you’ll pay more out of pocket if something happens.

Claims History

If you’ve made many claims in the past, insurers see you as a higher risk and may charge more. A clean claims record can help you get lower rates or discounts.

Insurance Company

Prices can vary between insurers. Some specialize in construction or trades and may offer better rates or more flexible plans. It’s a good idea to compare quotes from different providers.

How To Lower Your Flooring Contractor Insurance Costs

Running a flooring contractor business can be expensive, but your insurance bill doesn’t have to break the bank. While you can’t eliminate the need for coverage, you can take smart steps to reduce your premiums without sacrificing protection. Here are some practical ways to lower your flooring contractor insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often reward businesses that commit to a policy long-term. Ask your provider if they offer multi-year discounts for signing a two- or three-year agreement instead of renewing annually. You might also qualify for lower rates if you pay your premium in full instead of in monthly installments.

3. Implement Safety Measures

Accidents can be costly for both you and your insurance company. Taking steps to reduce the chance of injuries on the job can help lower your insurance premiums over time. For example, using proper safety gear, keeping tools and materials organized, marking hazardous areas, training workers on safe lifting and cutting techniques, and maintaining your equipment can all help reduce your risk and keep insurance costs down.

4. Create A Safe Working Environment

A strong safety program can help lower your workers’ compensation insurance costs.This means training your team on things like how to lift heavy materials safely, how to use tools properly, wearing safety gear, and what to do in an emergency. Fewer accidents on the job mean fewer insurance claims, and that can lead to lower premiums over time.

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises. By taking these steps, you not only save money but also make your business a safer, and more resilient flooring contractor business.