The policies a remodeling business carries
Remodelers open walls in occupied homes, so damage to the rest of the house, a subcontractor's injury and defects found after the job are the claims to plan for. Builder's risk covers the project while it is being built.
| 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 remodelers plan for
- Dust from demo ruins furniture in the next room
- A sub without insurance is hurt on your job
- A pipe hit during demo floods the floor below
- A defect in a finished bathroom shows up a year later
Ask your agent, in these words:
- Would my policy pay if dust from demo ruins furniture in the next room?
- Would my policy pay if a sub without insurance is hurt on your job?
- Would my policy pay if a pipe hit during demo floods the floor below?
- Would my policy pay if a defect in a finished bathroom shows up a year later?
Name the work you sell
A policy covers the work you describe on the application. From the remodeling services list, name each of these and ask whether any is excluded: bathroom remodel; kitchen remodel; basement finishing; interior demolition; drywall install and finish; luxury vinyl plank, installed; tile floor, installed; insulation, batts; composite deck; siding, vinyl; window and door replacement.
Saws, compressors and job trailers can be insured under a tools and equipment or inland marine policy. On the tools list, the items to list on the policy are table saw; tile saw; drywall tools; air compressor and finish nailers; dumpster or dump trailer access; air scrubber, and from the starter kit, cordless drill, impact driver and a circular saw; miter saw and stand; oscillating multi-tool and reciprocating saw; levels, squares and a laser level; multi-position ladder.
State rules in the license
Remodeling work often falls under the general contractor rules. Our general contractor license guide lists the insurance and bond line for each of 48 states from the boards' own pages.
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
Homeowners with lenders and HOAs often ask for a certificate before the permit is pulled. 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
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.