The fastest way to cheap contractor insurance is to buy only what your work and your clients require, describe that work accurately, and compare more than one quote. Most of the savings come from those three steps, not from hunting for a discount code.
General liability is the policy nearly every contractor needs, and it is also the cheapest one most contractors buy. Workers comp, commercial auto, and bonds depend on your crew, vehicles, and state, so the cheapest setup is the one that skips what you do not need without dropping what a client or the law asks for.
Cheapest trades to insure
Trade risk sets the starting price. Here is what each trade typically pays for general liability, cheapest first, based on published customer data.
| Rank | Trade | General liability, typical monthly | Typical yearly |
|---|---|---|---|
| 1 | Janitorial insurance | $60 | $725 |
| 2 | Electrician insurance | $61 | $732 |
| 3 | Drywall insurance | $62 | $740 |
| 4 | Landscaping insurance | $63 | $761 |
| 5 | Painter insurance | $72 | $862 |
| 6 | Pressure washing insurance | $73 | $879 |
| 7 | Flooring insurance | $77 | $919 |
| 8 | Handyman insurance | $81 | $972 |
| 9 | Carpenter insurance | $94 | $1,124 |
| 10 | HVAC insurance | $101 | $1,213 |
| 11 | Fencing insurance | $115 | $1,382 |
| 12 | Concrete insurance | $119 | $1,423 |
| 13 | Plumber insurance | $147 | $1,768 |
| 14 | General contractor insurance | $162 | $1,950 |
Sources: Insureon customer cost data for every trade except fencing, which uses The Hartford customer averages. Yearly figures without a published annual number are the monthly figure times twelve. Typical figures, not quotes.
Riskier work costs more for a reason: plumbers face large water damage claims and general contractors answer for whole jobs and their subs. If your trade sits near the top of the table, the tips below matter more.
12 ways to lower your contractor insurance cost
Get your class code right
Insurers price by the work you describe. A handyman who also does roofing, or a painter who takes on drywall, can land in a pricier class. Describe the work you actually do, and leave out work you no longer take.
Report revenue and payroll honestly
General liability is often priced on revenue and workers comp on payroll. Guess high and you overpay all year. Guess low and the year-end audit sends a bill.
Bundle into a business owners policy
If you qualify, a BOP packages liability and property for less than buying them apart. It fits many handyman, painting, cleaning, and flooring businesses.
Pay the year up front
Many insurers add installment fees to monthly billing. If cash flow allows, paying annually is often cheaper.
Use pay-as-you-go workers comp
Premium follows your real payroll each pay period, so seasonal trades avoid overpaying in slow months and a big audit bill later.
Collect certificates from every sub
At audit, insurers can charge you for subcontractors who had no coverage of their own. A certificate on file for each sub keeps that payroll off your bill.
Pick a higher deductible where it helps
On tools, property, and auto physical damage, a higher deductible lowers the premium. Keep it to an amount you could pay tomorrow.
Keep drivers and vehicles clean
Commercial auto prices lean on driving records. Fewer drivers, clean records, and the right vehicle class all bring it down.
Lock up tools and trailers
Locked storage, GPS trackers, and trailer locks reduce theft claims, and some insurers ask about them when pricing equipment cover.
Stay claims-free and document safety
A clean claims history is one of the biggest discounts in insurance. A simple written safety program helps with workers comp pricing too.
Buy the limits the job needs
$1 million per occurrence and $2 million aggregate covers most residential work. Buy higher limits through an umbrella only when contracts ask for them.
Compare quotes every year
Prices for the same business can vary a lot between insurers, and the cheapest insurer last year may not be cheapest now.
Where cheap contractor insurance comes from
Low prices tend to come from three places, and each one trades something for the savings.
Direct and digital insurers
Insurers such as Next, biBerk, and Thimble sell online with no agent, often with instant certificates. Good for simple, small operations. Less hand-holding when something is unusual.
Independent agents
An agent can shop several insurers at once and place harder risks, like roofing or a crew with vehicles. Worth it once your business has more moving parts.
Short-term policies
By-the-job or monthly general liability keeps costs down for part-time work. Full-time contractors usually pay less with an annual policy.
For a ranked look at specific insurers, see best handyman insurance and cheap handyman insurance.
What cheap policies can leave out
A low price sometimes means a narrow policy. Before you buy, look for these:
- Residential or new-construction exclusions that cut out the work you do most
- Height limits that exclude roof or multi-story work
- Subcontractor exclusions that void coverage if a sub lacks insurance
- Action-over exclusions that drop claims brought by injured workers through a GC
- Actual cash value on tools, which pays less than replacement cost
- Limits below what your contracts require
Read more on what each policy covers in our guides to contractor general liability insurance, BOP insurance, and workers comp for contractors.