General Contractor Insurance Cost

Core coverages in this program

• •General Liability with Completed Operations
• •Workers' Compensation
• •Commercial Auto
• •Builders Risk (per-project)
• •Inland Marine (tools & equipment)
• •Commercial Umbrella / Excess Liability

What actually drives general contractor insurance cost

Carriers rate general contractors on five inputs: annual gross receipts, subcontracted vs self-performed work, trade mix (framing vs finish), payroll, and loss history. A GC that self-performs framing and roofing pays 2–3x more than a GC that subcontracts everything and manages the project. Requiring subs to carry $1M GL with a hold-harmless is the single biggest cost lever a GC controls.

General liability costs, by GC size

Here are realistic 2026 premium ranges for $1M/$2M general liability:

• •Solo remodeler / small GC (<$500K receipts): $1,200–$2,500
• •Small GC ($500K–$2M receipts): $2,500–$6,000
• •Mid-size GC ($2M–$10M): $6,000–$25,000
• •Custom home builder ($10M+): $25,000–$80,000
• •Commercial GC on multi-family / TI work: quoted per project

Workers' compensation — the biggest line item

For most self-performing GCs, workers' comp is the largest single insurance cost — often more than GL, auto, and umbrella combined. Carpentry (5645) typically prices at $8–$18 per $100 of payroll. Framing (5645/5651) $10–$25. Roofing (5551) $18–$45. Splitting payroll by activity and using a certified payroll audit protects against costly year-end assessments.

Where GCs overpay

Three patterns we see repeatedly: (1) GL limits set at $2M/$4M when project owners only require $1M/$2M and umbrella covers the rest, (2) blanket additional-insured endorsements at cost when a targeted schedule would price 15% less, and (3) failing to collect subcontractor COIs, which pushes sub-payroll onto the GC's own comp audit at year end.