What workers comp for contractors covers
- Medical care for an employee injured at work
- Part of their lost wages while they recover
- Disability benefits for lasting injuries
- Death benefits for an employee's family
- Employer's liability, if an employee sues over a work injury
What workers comp for contractors does not cover
- Injuries to customers or the public (that is general liability)
- Injuries to independent subcontractors who carry their own comp
- Injuries from horseplay or intoxication, in most states
- You as the owner, unless you choose to include yourself
How much does workers comp for contractors cost?
Median-based figure for construction businesses buying through Insureon. Your premium is set mostly by payroll and your trade's class code.
Source: Insureon, construction business insurance cost (updated July 2026). A typical figure, not a quote.
When you need it
Most states require workers comp as soon as you have one employee. A few set the line at three, four, or five employees, and some treat construction stricter than other work. Texas is the outlier: most private employers there can choose not to carry it, though many GCs still require it.
Sole operators
If you work alone, you usually do not have to carry it. Some GCs still ask for a certificate, so many solo tradespeople buy a policy that covers themselves or carry a state exemption certificate instead.
How it is priced
Insurers multiply your payroll by a rate tied to your trade's class code, then adjust for your claims history. Roofing and framing rates run far higher than painting or cleaning. Keeping payroll records clean makes the year-end audit painless.
Check the rule where you work in our workers comp requirements by state table, with the official source for every state.
Which trades need workers comp for contractors?
How often each trade needs this coverage, based on what clients, GCs, and states usually ask for.
| Trade | How common | Why |
|---|---|---|
| Electrician insurance | Usually required | Required in most states once you have employees |
| Plumber insurance | Usually required | Required in most states once you hire |
| HVAC insurance | Usually required | Required in most states once you hire |
| Landscaping insurance | Usually required | Required in most states once you hire a crew |
| Painter insurance | Usually required | Ladder falls make this a big one once you hire |
| General contractor insurance | Usually required | Required for your crew, and you may answer for uninsured subs |
| Carpenter insurance | Usually required | Framing and scaffold work bring higher comp rates |
| Flooring insurance | Usually required | Required in most states once you hire |
| Drywall insurance | Usually required | Lifting and lift work injuries |
| Concrete insurance | Usually required | Heavy work brings high comp rates |
| Janitorial insurance | Usually required | Required in most states once you hire |
| Fencing insurance | Usually required | Lifting and auger injuries |
| Handyman insurance | Depends | Once you hire help |
| Pressure washing insurance | Depends | Once you hire help |