The policies a general contracting business carries
A general contractor is responsible for the whole site, including the subs. Injuries to subs without their own coverage, defects found after closing and damage to neighbors' property are the claims GCs plan for.
| Policy | Average a month |
|---|---|
| General liability | $162 |
| Tools and equipment | $42 |
| Commercial auto | $287 |
| Workers' compensation | $196 |
| Surety or license bond | $10 |
| Business owner's policy | $125 |
| Professional liability | $67 |
| Commercial umbrella | $140 |
| Builder's risk | $136 |
Averages are what Insureon's customers who are general contractors pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims general contractors plan for
- A sub's work fails and the owner claims against you
- A neighbor's property is damaged by site work
- A worker without insurance is hurt
- A delay causes the owner extra costs
Ask your agent, in these words:
- Would my policy pay if a sub's work fails and the owner claims against you?
- Would my policy pay if a neighbor's property is damaged by site work?
- Would my policy pay if a worker without insurance is hurt?
- Would my policy pay if a delay causes the owner extra costs?
Name the work you sell
A policy covers the work you describe on the application. From the general contracting services list, name each of these and ask whether any is excluded: additions; kitchen and bath remodels; basement finishing; interior demolition; deck, pressure-treated; siding, fiber cement; window and door replacement; project management fee; permit handling; design and estimate.
Builder's risk covers the project while it is being built. On the tools list, the items to list on the policy are job trailer or storage container; dumpster account; temporary power and lighting; fall protection and guardrails, and from the starter kit, laser level and tape measures; cordless drill, impact driver and circular saw; multi-position ladder; moisture meter; non-contact voltage tester.
State rules in the license
These are the insurance and bond lines in each state's general contractor license rules, from our general contractor license guide, which reads each state board's own pages. 38 of the 48 states we cover set an insurance or bond rule in the license itself. Click a state for the full license steps.
| State | Insurance in the license rules | Bond |
|---|---|---|
| Alabama | The Home Builders law does not require insurance, but a residential builder must tell the homeowner in writing, before work starts, whether they carry liability insurance. For the General Contractors board, check with the board. | Not set in the license rules we checked |
| Alaska | Public liability and property damage insurance of at least $20,000 property, $50,000 injury to one person and $100,000 injury to more than one person, plus workers' comp as required by state law. | $25,000 for a general contractor, or $20,000 for a general contractor with a residential endorsement who does only residential work. |
| Arizona | You must attest that you follow the state workers' compensation rules, and at renewal licensees with employees give their workers' comp policy number and insurer. Check with the board for liability insurance. | Residential general: $9,000 if yearly volume is under $750,000, or $15,000 at $750,000 or more. Commercial general: $5,000 up to $100,000 based on yearly volume. A dual license combines both amounts. |
| Arkansas | Workers' comp is required if you have one or more employees. | Commercial applicants need a $10,000 contractors surety bond. Commercial net worth: $50,000 for the Building classification, half of it in cash. |
| California | Workers comp is required unless you have no employees and file an exemption. LLCs may also need extra liability insurance and an employee or worker bond. | $25,000 contractor bond. |
| Connecticut | General liability insurance of at least $20,000 for home improvement and new home construction registrations. | Not set in the license rules we checked |
| Delaware | You need Delaware workers compensation coverage. The registration application asks for your policy, and the Division of Revenue license needs a workers compensation certificate, or proof you are an approved self-insurer, plus a Department of Labor notice certificate. | Nonresident contractors must post a bond of 6% of the contract price on contracts of $20,000 or more. |
| District of Columbia | A certificate of liability insurance is required. | None listed for the general contractor license today. Under the 2024 law, once funded, a residential contractor can show financial responsibility with a $25,000 bond. |
| Florida | General and building contractors: at least $300,000 public liability and $50,000 property damage. Other categories: $100,000 and $25,000. Workers compensation or an exemption is also required. | Not set in the license rules we checked |
| Georgia | General liability of at least $300,000 for Residential-Basic and $500,000 for Residential-Light Commercial, plus workers compensation as state law requires. Check with the board for the General Contractor amount. | Not set in the license rules we checked |
| Hawaii | General liability of at least $100,000 bodily injury per person, $300,000 per occurrence, and $50,000 property damage. Workers compensation if you have employees. | Only if the board requires one for your license. |
| Idaho | Proof of general liability coverage of at least $300,000 single limit, including products and continued operations. Proof of workers' compensation, or a statement of why you do not need it. | Not set in the license rules we checked |
| Illinois | State law for home repair and remodeling: liability of $100,000 per person and $300,000 per occurrence for bodily injury, plus $50,000 per occurrence for property damage, and $10,000 per occurrence for work that does not meet code, unless net worth is at least $1,000,000. Chicago adds its own class-based minimums. | No state license, so check with your city. |
| Indiana | Set by each city or county. | Set by each city or county. |
| Iowa | An Iowa unemployment insurance number is required to register. If you have employees, you must carry workers' compensation. | Most contractors based outside Iowa must file a $25,000 bond to register. |
| Kansas | Set by each city or county. | Set by each city or county. |
| Louisiana | Residential and home improvement applicants must show at least $100,000 general liability and proof of workers comp. Commercial applicants do not submit insurance proof. | Not set in the license rules we checked |
| Maryland | Since June 1, 2024, every MHIC contractor must carry at least $500,000 general liability insurance. | If you do not meet the commission's financial solvency guidelines, you can use an indemnitor or buy a $30,000 or $100,000 surety bond. |
| Minnesota | Liability insurance of at least $100,000 per occurrence and $300,000 aggregate, plus $25,000 property damage. The state must be listed as certificate holder. | No bond for a new license. A $40,000 surety bond is needed to reinstate after the recovery fund pays a claim against you. |
| Mississippi | Proof of general liability insurance is required for every license and renewal. There is no minimum for residential licenses. Commercial licenses need at least $300,000 per occurrence or $600,000 aggregate. Send proof of workers comp if you have 5 or more employees. MSBOC must be listed on the policy for cancellation notice. | Not set in the license rules we checked |
| Montana | The license application must include proof that you comply with Montana workers comp laws. | Not set in the license rules we checked |
| Nebraska | Contractors with one or more employees must file a current workers comp certificate of insurance (ACORD 25) naming the Department of Labor as certificate holder. A contractor not required to carry workers comp signs a statement saying so. | Not set in the license rules we checked |
| Nevada | Proof of workers comp coverage is required to get, keep and renew a license, unless you are exempt and sign an exemption affidavit. | A license bond set by the board at approval, from $1,000 to $500,000, based on license type, monetary limit, finances, experience and character. |
| New Jersey | Commercial general liability insurance of at least $500,000 per occurrence, kept on file with the Division. A copy of the policy goes to the customer with the contract. | Not set in the license rules we checked |
| New Mexico | Workers compensation insurance is required of all licensees. A sole owner with no employees may be exempt. | A $10,000 code compliance bond from a surety authorized in New Mexico, covering the full license period. |
| North Carolina | None for the license itself. Workers' comp is required by NC law where it applies, and some projects or permits may require insurance. | No bond is required for the license, unless you use a surety bond in place of the working capital test: $175,000 for limited, $500,000 for intermediate, $1,000,000 for unlimited. |
| North Dakota | A certificate of liability insurance naming the Secretary of State as certificate holder, plus proof of workers compensation coverage from Workforce Safety and Insurance (or a letter of good standing if you have no ND employees). | No state contractor bond. The bond section of the contractor law was repealed in 1995. |
| Oregon | Residential general: $500,000 per occurrence general liability. Commercial Level 2: $1 million aggregate. Commercial Level 1: $2 million aggregate. Workers comp if you have non exempt employees. | Residential general $25,000. Commercial Level 2 $25,000. Commercial Level 1 $80,000. Doing both residential and commercial work needs two bonds. |
| Pennsylvania | General liability with at least $50,000 personal injury and $50,000 property damage coverage. | Not set in the license rules we checked |
| Rhode Island | General liability insurance of at least $500,000 naming RICRLB as the certificate holder, plus workers' comp if you have employees. A missing insurance certificate can bring a $250 fine, then $500 for each later offense. | Not set in the license rules we checked |
| South Carolina | Not set in the license rules we checked | Residential Builder: $15,000 surety bond in your own name. Commercial: net worth proof or a surety bond by group, from $20,000 (Group 1) to $350,000 (Group 5). |
| Tennessee | General liability and workers comp (or a valid exemption) are required. Minimum general liability is $100,000 for a monetary limit up to $500,000, $500,000 for $500,001 to $1,500,000, and $1,000,000 above that. | A CPA reviewed financial statement (audited above a $3,000,000 limit) less than 12 months old, or a contractor surety bond equal to at least 50% of the monetary limit requested. |
| Utah | General liability of at least $1,000,000 per incident and $2,000,000 aggregate, with DOPL as certificate holder. Workers comp, or a Labor Commission waiver if you have no employees. | Not set in the license rules we checked |
| Vermont | Liability insurance of at least $1,000,000 per occurrence and $2,000,000 aggregate, with proof at application and renewal. | Not set in the license rules we checked |
| Virginia | Not set in the license rules we checked | Class A: $45,000 net worth or a $50,000 surety bond. Class B: $15,000 net worth or a $50,000 surety bond. No net worth requirement is listed for Class C. |
| Washington | General liability of $200,000 public liability and $50,000 property damage, or $250,000 combined single limit, with a certificate on file at L&I. | $30,000 surety bond for a general contractor. |
| West Virginia | Workers' compensation and unemployment coverage for all employees working in West Virginia. The board's guide does not list a general liability amount. | A wage bond status affidavit is required with every application. Commercial contractors with employees may need a wage bond, set by the Division of Labor Wage and Hour Section. |
| Wisconsin | Either general liability insurance of at least $250,000 per occurrence or a surety bond of at least $25,000, kept current as proof of financial responsibility. | A surety bond of at least $25,000 can be used instead of the liability policy. |
States not listed either leave insurance to cities and counties or set no rule in the license. Your city, your customers and your contracts can still ask for more.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for general contractors is $196 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
Clients, lenders and municipalities ask for certificates, and you should collect them from every sub. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for general contractors, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
- Koira: General Contractor license requirements by state (each row lists its board sources), checked October 9, 2026
- OSHA: Fall protection, checked October 8, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.