The policies a restoration business carries
Restoration companies take on wet, moldy and smoke-damaged homes, so mold that comes back, a home that was not fully dried and contents damaged in a pack-out are the claims to plan for. Many restoration companies also ask their agent about pollution coverage for mold.
| Policy | Average a month |
|---|---|
| General liability | $83 |
| Tools and equipment | $42 |
| Commercial auto | $270 |
| Workers' compensation | $160 |
| Surety or license bond | $9 |
Averages are what Insureon's customers among contractors as a group (it publishes no separate figures for restoration) 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 restoration companies plan for
- Mold comes back because a wall was not fully dried
- Contents are damaged during a pack-out
- A customer disputes the drying days billed
- An air mover cord trips a tenant in a hallway
Ask your agent, in these words:
- Would my policy pay if mold comes back because a wall was not fully dried?
- Would my policy pay if contents are damaged during a pack-out?
- Would my policy pay if a customer disputes the drying days billed?
- Would my policy pay if an air mover cord trips a tenant in a hallway?
Name the work you sell
A policy covers the work you describe on the application. From the restoration services list, name each of these and ask whether any is excluded: clean water; gray water; black water; emergency or after-hours call-out; mold remediation; mold testing, basic; mold treatment after water damage; drywall repair after a flood cut; contents pack-out and cleaning; smoke and soot cleaning; board-up and tarping.
Air movers, dehumidifiers and extractors travel to every job and are worth listing. On the tools list, the items to list on the policy are air scrubbers and negative air machines; truck-mounted or large portable extractor; containment poles and zipper doors; generator; trailer to carry equipment, and from the starter kit, moisture meter for building materials; thermal camera; portable extractor or water claw; air movers, several; dehumidifiers, lgr type.
State rules in the license
Restoration 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.
Restoration work usually falls under the contractor rules in the state license guide. A few states also license mold assessment and remediation on their own, so check before you sell mold work.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for contractors as a group is $160 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
Insurance carriers, property managers and homeowners ask for a certificate before work starts. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for contractors as a group, 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.