How Much Does Renovation and Remodelling Insurance Cost? 2026 Rates

Renovation and remodeling companies in the United States typically spend between $1,080 and $1,200 per year on comprehensive business insurance, which equals about $90 to $100 per month. Actual premiums vary depending on the overall risk profile of the business. Several factors influence how much coverage will cost, including project scope, property value, location, construction type, contractor credentials, project duration, and coverage limits.

How Much Does Renovation and Remodelling Insurance Cost?

On average, renovation and remodeling businesses in the United States spend between $1,080 and $1,200 annually on business insurance. That equals about $90 to $100 per month. These figures are only estimates, and the actual premium depends on the details of your operation.

Every renovation and remodeling company faces unique risks. A small contractor focused on basic home updates will typically pay far less than a large firm managing structural changes or commercial projects.

The type of work you perform, the size of your team, the tools and equipment you use, and your business location all play a major role in shaping costs. For example, companies operating in areas with higher theft or frequent lawsuits often pay more for liability coverage. Similarly, firms using heavy machinery or working with electrical systems may face higher property insurance costs compared to those handling cosmetic upgrades like painting or flooring.

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

• Number of employees – More staff increases workers’ compensation and liability 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 renovation and 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 employees, tools, and clients without overspending.

Average Renovation & Remodelling Insurance Costs For Coverage Types

When it comes to protecting your renovation and remodelling 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 renovation & remodelling businesses need.

• General liability insurance: $90 per month
• Business owner’s policy: $100 per month
• Workers’ compensation: $260 per month
• Builder’s risk insurance: $95 per month
• Commercial auto insurance: $181 per month
• Contractor’s tools and equipment: $14 per month
• Professional liability insurance: $80 per month

General Liability Insurance

The average cost of general liability insurance for a renovation & remodelling business is about $90 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a homeowner trips over your tools during a renovation and gets injured, this policy would help cover their medical bills and any legal fees if they decide to sue.

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

Factors that influence the cost include the business size, location, customer traffic volume, previous claims history, and any subcontractors or additional insured endorsements.

Average annual premiums by state:

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

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $100 per month for renovation and remodelling business.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your tools, equipment, or office space. For example, if a fire breaks out at your workshop and damages your power tools and renovation materials, the BOP would help cover the repair or replacement costs.

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 business property value, location risk, business revenue, number of employees, and any optional endorsements like business interruption insurance.

Average annual premiums by state:

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

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a renovation and remodelling business is around $260 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a construction worker falls off a ladder while remodelling a home and injures their back, workers’ compensation would pay for their medical treatment and help cover their lost wages during recovery.

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.

Average annual premiums by state:

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

Builder’s Risk Insurance

The average cost of builder’s risk insurance for renovation and remodelling business is about $95 per month.

Builder’s risk insurance is a type of coverage that protects buildings and materials while construction or major renovations are happening. It helps pay for damage caused by things like fire, theft, vandalism, or storms during the project.

If you’re remodelling a client’s kitchen and a fire breaks out overnight, damaging new cabinets and appliances before the job is finished, builder’s risk insurance would help cover the cost to repair or replace the damaged materials.

The cost of builder’s risk insurance depends on the value of the structure, including materials and labor.

Average annual premiums by state:

Note: These estimates are based on average national Builder’s Risk Insurance premiums for renovation & remodeling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on project size, construction value, claims history, geographic risks, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for renovation and remodelling business is about $181 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if a remodelling contractor gets into an accident while driving a company van to a job site, this policy would cover the repair costs and any third-party injury or property damage claims.

Factors influencing the cost include the coverage needs, the value of the vehicle, and your insurance claims history.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for renovation & remodeling 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.

Professional Liability Insurance

The average cost of professional liability insurance for a renovation and remodelling business is about $80  per month.

Professional liability insurance (also called Errors and Omissions Insurance) protects your business if a customer claims you made a mistake, gave bad advice, or didn’t do the job properly, and it caused them a financial loss.

For example, if you remodel a bathroom but make an error in the plumbing that later causes water damage, the client might sue you for poor workmanship. This insurance would help cover your legal costs and any settlement or judgment against you.

The cost of professional liability insurance depends on things like how much coverage you want, how big your business is, and the kind of services you provide.

Average annual premiums by state:

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

Contractor’s Tools And Equipment

The average cost of contractor’s tools and equipment for a renovation and remodelling business is about $14 per month.

Contractors tools and equipment insurance covers the repair or replacement of tools and equipment used in your business if they are lost, stolen, or damaged.

For example, if someone breaks into your truck at a job site and steals your power saws, drills, and measuring tools, this insurance would help cover the cost to replace them. Without it, you’d have to pay out of pocket to replace the tools you need to keep working.

The cost of contractor’s tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Average annual premiums by state:

Note: These estimates are based on average national Contractor’s Tools and Equipment Insurance premiums for renovation & remodeling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the value of tools and equipment, theft risk, claims history, geographic risks, and insurer underwriting practices.

Renovation & Remodelling Business Insurance Costs By Provider

Renovation & remodelling 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 renovation and remodelling 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 renovation work performed, location, claims history, and coverage limits.

What Factors Impact Your Renovation & Remodelling Insurance Costs?

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

Type Of Projects

Not all renovation jobs carry the same risks. Contractors focused on small home updates like painting or flooring usually pay less than those handling large structural renovations or commercial remodels. Bigger, riskier projects mean higher premiums.

Use Of Tools And Equipment

Heavy machinery, electrical systems, and power tools increase the likelihood of accidents or property damage. Insurers charge more to cover businesses that rely on high-risk equipment.

Location Of Jobs

Where you work matters. Projects in high-crime areas, regions prone to floods or fires, or busy urban zones often come with higher premiums. Safer, low-risk neighborhoods typically cost less to insure.

Size Of The Business

The number of employees, vehicles, and projects directly impacts premiums. Larger crews and higher revenue increase exposure to claims, driving up workers’ compensation and liability costs.

Value Of Tools And Equipment

Owning expensive or specialized gear raises property coverage needs. Many contractors also add equipment breakdown or tools-and-equipment insurance to protect against theft or damage, which increases premiums.

Claims History

Frequent claims signal higher risk to insurers, which can raise rates. A clean record often qualifies contractors for discounts and more favorable terms.

How To Lower Your Renovation & Remodelling Insurance Costs

Running a renovation and 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 through the same provider can unlock further discounts and simplify 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. Using the right tools, keeping equipment well-maintained, wearing protective gear, and following safe procedures when working on roofs, electrical systems, or structural changes all help reduce liability risks. Demonstrating strong safety practices can lower premiums over time.

4. Build A Safer Work Environment

Workers’ compensation costs can be managed by focusing on employee safety. Training crews on proper lifting techniques, safe tool use, and consistent protective gear practices reduces injuries. Fewer claims mean lower premiums.

5. 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.