Insurance Requirements · United States · 2026
Do general contractors need insurance?
Yes — in nearly every U.S. state. Most states require licensed general contractors to carry Commercial Auto, General Liability, Workers' Compensation before they can operate. Here's what to buy, what it costs, and which carriers serve the trade.
01
Coverage checklist
| Coverage | Requirement | Annual cost |
|---|---|---|
| Commercial AutoCA | Required | $1400.00–$2800.00/yr |
| General LiabilityGL | Required | $700.00–$1800.00/yr |
| Workers' CompensationWC | Required | $2500.00–$8000.00/yr |
| Inland Marine / Tools & EquipmentIM | Recommended | $400.00–$1200.00/yr |
| Business Owner's PolicyBOP | Optional | $800.00–$2500.00/yr |
| Commercial PropertyCP | Optional | $800.00–$3000.00/yr |
| Professional Liability / E&OPL/E&O | Optional | $800.00–$2500.00/yr |
SOURCE · National carrier filings · BLS labor statistics · Updated 2026
02
Cost breakdown
Commercial Auto
$1400.00–$2800.00/yr
Cost factors
- ·Fleet size
- ·Vehicle type
Required for work trucks.
General Liability
$700.00–$1800.00/yr
Cost factors
- ·Project values
- ·Crew size
- ·Masonry vs. framing
- ·Subcontractor oversight
Required by virtually every state license and project contract; often $1M/$2M limits or higher.
Workers' Compensation
$2500.00–$8000.00/yr
Cost factors
- ·Payroll
- ·Trade mix
- ·Experience mod
Required once you have employees; many project owners also require proof even for GCs without direct employees.
Inland Marine / Tools & Equipment
$400.00–$1200.00/yr
Cost factors
- ·Equipment value
- ·Job-site storage
Covers generators, scaffolding, and heavy tools at job sites.
Business Owner's Policy
$800.00–$2500.00/yr
Cost factors
- ·Office/shop value
If you have an office or shop.
Commercial Property
$800.00–$3000.00/yr
Cost factors
- ·Office/shop ownership
If you own/lease an office or yard.
Professional Liability / E&O
$800.00–$2500.00/yr
Cost factors
- ·Design-build work
- ·Project size
Relevant for design-build GCs.
03
Best carriers for general contractor
Embroker
AM Best: A
professional-liabilitygeneral-liabilityworkers-compensationcyber-liability
Hiscox
AM Best: A
professional-liabilitygeneral-liabilitycyber-liabilitybusiness-owners-policy
NEXT Insurance
AM Best: A-
general-liabilityworkers-compensationcommercial-autobusiness-owners-policy
Simply Business
AM Best: A
general-liabilityprofessional-liabilityworkers-compensationcommercial-auto
Thimble
AM Best: A
general-liabilitycommercial-autoinland-marineworkers-compensation
04
Requirements by state
| State | Coverage | Required? | Notes |
|---|---|---|---|
| Alabama | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Alaska | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Arizona | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Arkansas | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| California | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Colorado | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Connecticut | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Delaware | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| District of Columbia | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Florida | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Georgia | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Hawaii | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Idaho | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Illinois | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Indiana | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Iowa | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Kansas | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Kentucky | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Louisiana | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Maine | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Maryland | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Massachusetts | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Michigan | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Minnesota | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Mississippi | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Missouri | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Montana | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Nebraska | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Nevada | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| New Hampshire | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| New Jersey | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| New Mexico | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| New York | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| North Carolina | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| North Dakota | Workers' Compensation | Required | Statutory — Workers' comp is purchased through the state fund (monopolistic state). |
| Ohio | Workers' Compensation | Required | Statutory — Workers' comp is purchased through the state fund (monopolistic state). |
| Oklahoma | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Oregon | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Pennsylvania | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Rhode Island | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| South Carolina | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| South Dakota | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Tennessee | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Texas | Workers' Compensation | Optional | Statutory — Texas is the only state where workers' comp is optional for private employers. |
| Utah | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Vermont | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Virginia | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Washington | Workers' Compensation | Required | Statutory — Workers' comp is purchased through the state fund (monopolistic state). |
| West Virginia | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Wisconsin | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Wyoming | Workers' Compensation | Required | Statutory — Workers' comp is purchased through the state fund (monopolistic state). |
05
Frequently asked questions
Does a general contractor need insurance?+
Yes — and at higher limits than most trades. General liability is required by virtually every state license and project contract, and workers' comp is required once you have employees. Most GCs carry $1M/$2M liability limits or more.
How much does general contractor insurance cost?+
General liability runs $700–$1,800+ per year for a small GC, and workers' comp $2,500–$8,000 depending on payroll and the trades you oversee. Total core coverage often reaches $5,000–$12,000 per year for a small crew.
Do I need workers' comp if I only use subcontractors?+
Many project owners require GCs to carry workers' comp even without direct employees, and you may be liable if an uninsured sub is injured on your site. Most states require WC once you have W-2 employees.
06
Related professions
Other trades & contractors businesses
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