How Much Does Remodeling Contractor Insurance Cost? 2026 Rates

Remodeling contractors in the United States typically spend between $970 and $1,200 per year on comprehensive business insurance, which equals about $81 to $97 per month. Actual premiums vary depending on the overall risk profile of the business. Several factors influence how much coverage will cost, including services offered, business size, location, and claims history.

How Much Does Remodeling Contractor Insurance Cost?

On average, remodeling contractors spend between $970 and $1,200 annually on business insurance. That equals about $81 to $97 per month. These figures are only estimates, and the actual premium depends on the details of your business.

Every remodeling contractor faces unique risks. A small project involving a single room carries far fewer risks than large-scale commercial remodels after disasters such as earthquakes or fires. The services you provide, the value of your property, and your location all play a major role in shaping costs.

For example, contractors working on high-rise buildings, hazardous materials, or commercial sites in steep or high-traffic areas often pay more for liability coverage due to the increased risks.

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

• Services offered – Impacts professional liability and tool coverage.
• Number of employees – More staff increases workers’ compensation requirements.
• Property size and value – Larger facilities or costly equipment 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.

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

Average Remodeling Contractor Insurance Costs For Coverage Types

When it comes to protecting yourself as a remodeling contractor, 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 remodeling contractors need.

• General liability insurance: $81 per month
• Commercial tool and equipment insurance: $49 per month
• Drywall liability insurance: $102 per month
• Builders risk insurance: $101 per month
• Business owner’s policy: $102 per month
• Surety bonds: A percentage of the bond amount
• Professional liability insurance: $56 per month
• Workers’ compensation insurance: $245 per month
• Commercial auto insurance: $162 per month
• Commercial property insurance: $52 per month
• Cyber liability insurance: $102 per month

General Liability Insurance

The average cost of general liability insurance for a remodeling contractor is about $81 per month.

General liability covers third-party bodily injury, property damage, and injuries. For example, if a client trips and falls over loose remodeling on a job site and gets injured, 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 remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on project size, risk exposure, claims history, coverage limits, and insurer underwriting practices.

Builders Risk Insurance

The average monthly cost of builders risk insurance is $101 for remodeling contractors. This protects you against hard and soft costs associated with a covered loss under your policy.

This is a form of protection against itemized hard and soft costs associated with losses from a covered event like vandalism or fire, including business interruption so lost income, tangible assets like lost or damaged materials. This can also provide coverage for costs incurred from the date that your remodeling job would have completed until the date it actually is complete.

Average annual premiums by state:

Note: These estimates are based on average national Builders Risk Insurance premiums for remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on project size, construction value, geographic risks (fire, theft, natural disasters), claims history, and insurer underwriting practices.

Commercial Tool And Equipment Insurance

The average cost of commercial tool and equipment insurance for a remodeling contractor is about $49 per month.

This can help cover losses for equipment that you have to bring to and from your job sites, things that are less than 5 years old including flat boxes, taping banjos, knives, drills, or T-squares.

This type of inland marine insurance can protect your tools when being transported, when at a job site, or if stored somewhere other than your main commercial property.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Tool and Equipment Insurance premiums for remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the value of tools and machinery, coverage limits, claims history, and insurer underwriting practices.

Drywall Liability Insurance

The average cost of drywall liability insurance for contractors is $102 per month.

If as a remodeling contractor you work with drywall, this is an additional form of coverage or an endorsement that you might consider adding.

This coverage can protect contractors against hazards involving things like lead paint or asbestos. For example, if there is exposure to lead paint when removing drywall from an older home, this would help protect any associated risks including the need for specialized protection.

Average annual premiums by state:

Note: These estimates are based on average national Drywall Liability Insurance premiums for remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on project size, risk exposure, 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 $102 per month for remodeling contractors.

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 like cyber protection, extra expensive coverage, or business interruption insurance. You might also need surety bonds to guarantee you will deliver on your contracts.

Average annual premiums by state:

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

Professional Liability Insurance

The average cost of professional liability insurance for remodeling contractors is about $56 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 you work on residential projects, you might expect to pay less than someone working on remodeling installation for a commercial property.

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 remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on project scope, risk exposure, claims history, coverage limits, and insurer underwriting practices.

Cyber Liability Insurance

The average cost of cyber liability insurance for remodeling contractors is $102 per month.

Remodeling contractor insurance covers the costs a remodeling contractor 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.

Remodelling contractors 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 remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the sensitivity of customer data handled (contracts, billing systems, project records), claims history, coverage limits, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a remodeling contractor is around $245 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee trips and falls over loose tools and debris at the office, and breaks their wrist, 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 remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, project risk exposure, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for remodeling contractors is about $162 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if a contractor causes an accident while driving to a job site, 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 work.

Average annual premiums by state:

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

Commercial Property Insurance

The average cost of commercial property insurance for a remodeling contractor, when purchased separately, usually runs $52 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 or tools at the office, 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 remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property value, geographic risks (fire, theft, natural disasters), claims history, and insurer underwriting practices.

Surety Bonds

In some cases as a remodeling contractor you may be required to carry a performance bond guaranteeing that you will complete your project. This can be a bond through a licensed agency for suppliers and subcontractors which generally costs a percentage of the bond value somewhere between 0.5% and 10%.

Average annual premiums by state:

Note: These estimates are based on average national Surety Bond premiums for remodeling contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on bond amount required by local/state regulations, contractor credit history, project size, and insurer underwriting practices.

Remodeling Contractor Business Insurance Costs By Provider

Remodeling contractor 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 remodeling 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 remodeling work performed, location, claims history, and coverage limits.

What Factors Impact Your Remodeling Contractor Insurance Costs?

Insurance premiums for remodeling contractors are determined by underwriters who assess your company’s overall risk profile. Several factors—from the type of services you provide to your claims history—play a role in shaping what you’ll pay for coverage.

Type Of Services

Not all remodeling projects carry the same risks. Contractors working on commercial buildings or hazardous job sites face higher liability exposure compared to those handling smaller residential renovations.

Location

Where you operate matters. Firms in urban, high-crime, or flood-prone areas typically pay more for property and liability insurance. Suburban or lower-risk regions may benefit from reduced rates.

Size Of The Operation

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

Property Value And Equipment

High-value tools, machinery, and office equipment increase commercial property insurance costs. Many remodeling contractors also add cyber liability endorsements to protect sensitive client data.

Claims History

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

Policy Limits And Deductibles

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

Optional Endorsements

Coverage add-ons such as business interruption, cyber liability, or hired/non-owned auto insurance tailor protection to your needs but also increase overall costs. These are especially important for contractors with off-site work or exposure to natural disaster risks.

Insurance Provider

Rates vary across carriers. Some insurers specialize in construction-related risks and may offer better pricing or flexible options for remodeling contractors. Comparing quotes across providers is one of the most effective ways to save.

How To Lower Your Remodeling Contractor Insurance Costs

Running a remodeling business can be costly, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical strategies to reduce expenses without sacrificing protection.

1. Bundle Your Policies

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

2. 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.

3. Strengthen Safety Measures

Accidents drive up costs for both you and your insurer. Regularly maintaining equipment, inspecting PPE, and enforcing safe worksite practices help reduce liability risks. Fewer incidents mean fewer claims, which lowers premiums over time.

4. Build A Safer Work Environment

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on fire safety, maintaining clear emergency exits, and implementing strong safety protocols reduce injuries. When fewer claims are filed, premiums stay lower.

5. Adjust Your Deductible

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