How builder's insurance actually works
There is no single price for contractor insurance, and anyone who quotes one before asking about your trade, payroll, revenue and states is guessing. What can be explained is what moves the number.
Roofing, excavation and anything working at height price far higher than interior finish work. This is the single largest factor.
Workers compensation is priced per hundred dollars of payroll, so it scales directly with headcount and wages.
General liability is priced on revenue, which is why two builders with the same headcount can pay very different amounts.
Each state has its own rates, its own rules and its own minimum requirements. Working across a state line means reporting there.
Claims and injuries follow you for years. A clean record is the cheapest coverage improvement available.
How much work you sub out, and whether those subcontractors carry their own coverage, changes your exposure materially.
For most builders, workers compensation is the largest line on the bill, not general liability. That surprises people, because general liability is the coverage contracts talk about. But workers compensation is priced per hundred dollars of payroll and it does not have a cap, so a growing payroll grows that line faster than anything else. If you are trying to reduce your premium, the honest place to start is your experience modification rate and your classification codes, not shopping the general liability limit down.
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Tell us what you build and where. A licensed specialist will answer with specifics, not a brochure.
