Published trade figures run from about $51 to $420 per month for a $1 million per occurrence and $2 million aggregate general liability policy, but that band hides an enormous spread. A solo handyman and a roofing crew are not the same risk, and the same crew does not price the same in California as it does in Texas. One of the biggest levers on your premium is your trade class code, which is also the detail most often recorded wrongly. ContractorsInsured.net is Pascal Burke Insurance Brokerage, Inc., licensed in California (#6015321) and Texas (#3305690). We shop multiple California and Texas admitted carriers for contractors, quote GL the same business day, and issue the COI right after binding.
How much does general liability insurance cost in 2026?
In brief: Published 2026 figures for contractor general liability range from a median near $89 per month among one insurer’s construction customers to about $337 per month in a national model priced at $1 million and $2 million limits. Both are real. They describe different populations, which is why the number you are quoted may sit anywhere between them.
Three published reference points, and what each one actually measures:
- MoneyGeek’s 2026 contractor model: about $337 per month, or $4,041 per year. Priced specifically at $1 million per occurrence and $2 million aggregate for a one to four person business, modelled across 45 contractor industries and all 50 states. At state level the same model spans roughly $204 to $596 per month.
- Insureon: about $89 per month, or $1,069 per year, the average among its construction and contracting customers at $1 million and $2 million limits with a $500 deductible. Insureon also reports that 39 percent pay under $75 and 76 percent pay under $150 per month.
- NEXT Insurance: about $77 per month for 93 percent of its general contractor customers. Read that one carefully. It covers a single trade across a spread of limits from $300,000 and $300,000 up to $1 million and $2 million, so it is not directly comparable to a standardised $1 million and $2 million quote.
Insureon separately reports that Texas contractors average about $152 per month for general liability.
Put them side by side and the useful insight is not any single number. It is the spread, and the reason for it. Insureon’s figure is the middle of what its own customers actually bought, and its methodology describes these as medians of purchased policies. MoneyGeek’s is a modelled price for a standardised one to four person business across 45 contractor industries and every state. Neither is wrong, and neither is your quote. The same coverage, described the same way, spans roughly $89 to $337 per month between those two methods before your own trade and state are considered.
“Contractors call quoting an average they saw online and ask why their number is different. The average is not wrong, it just is not describing them. A painter and a roofer are two different businesses to an underwriter, and the price says so.” Pascal Burke, Licensed Insurance Broker
What contractors actually pay, by trade
In brief: Trade classification is one of the largest factors in a general liability premium, alongside business size and revenue. Lower-risk finishing trades sit at the bottom of the range, and trades that work at height, with water, with fire, or with heavy equipment sit at the top, often several times higher for identical limits.
The table below gives published general liability costs by trade, ordered from lowest to highest. Unless noted, the figures are Insureon’s published figures for that trade at $1 million per occurrence and $2 million aggregate, drawn from policies its customers actually purchased and described in its methodology as medians. Treat them as a comparison between trades rather than as your quote. The annual column is the monthly figure multiplied by twelve, so where a source publishes its own annual number the two can differ slightly. Demolition is shown as a range because its source publishes one. Trades are listed separately wherever the source publishes them separately, so do not read two grouped trades into a single rate.
| Trade | Published monthly GL | Per year | Why it prices there |
|---|---|---|---|
| Handyman, light repair | $51 (Simply Business) | $612 | Small, low, dry, quickly completed jobs |
| Drywall | $57 | $684 | Moderate risk, dust and firewall penetrations |
| Painting | $59 | $708 | Overspray and surface damage claims |
| Tile and stone | $59 | $708 | Similar exposure, lighter average job value |
| Electrical | $61 | $732 | Fire exposure and a long completed operations tail |
| Masonry | $61 | $732 | Heavy materials, mostly ground level |
| Flooring | $63 | $756 | Moisture and subfloor damage |
| HVAC | $78 | $936 | Refrigerant, condensate, and fire exposure |
| Carpentry | $94 | $1,128 | Height and structural work |
| Plumbing | $115 | $1,380 | Water damage is frequent and expensive |
| Concrete | $119 | $1,428 | Structural consequence and equipment |
| Excavation | $127 | $1,522 | Underground utility strikes and earth movement |
| General contractor | $162 | $1,944 | Rated on the whole job, including subcontractors |
| Demolition | $200 to $420 (1-800-INSURANCE) | $2,400 to $5,040 | Explosion, collapse, and underground exposure |
| Roofing | $317 | $3,804 | Among the highest common trade rates, see below |
A note on the trades at the bottom of that table: roofing, demolition, and excavation often sit outside the standard admitted market and go to surplus lines carriers, which can add underwriting time and paperwork. For an eligible risk with a complete submission we quote general liability the same business day, but a high-hazard risk may need extra information before a carrier will commit.
Two things in that table are worth pausing on. The spread from bottom to top is more than six to one for identical limits, which is why a national average is close to useless as a personal estimate. And the ordering is not arbitrary: it tracks height, water, fire, and heavy equipment almost perfectly.
Some carriers price certain trades as a percentage of revenue rather than a flat premium. One agency publishes indicative figures of roughly 1 percent of annual revenue for many construction trades, rising to about 1.5 to 1.75 percent for roofing and framing, with minimum premiums near $2,900. Those are a single agency’s estimates rather than filed carrier rates, so treat them as an illustration of the structure rather than a benchmark. If your revenue is growing quickly, that structure matters more than the headline monthly figure.
For context on how many contractors sit where, Insureon reports that 39 percent of its construction customers pay less than $75 per month and 76 percent pay less than $150 per month, at an overall construction average of about $89 per month, or $1,069 per year. It also reports that 92 percent choose the $1 million and $2 million limits.
One more piece of context that affects every number above: liability pricing moves year to year, so a quote you were given a year or two ago is not a reliable guide to today’s price. Re-shop before assuming your renewal is competitive.
Roofing sits at or near the top of most carriers’ construction tables for four reasons that compound: crews work at height, torch and hot work introduces fire exposure, an incomplete roof invites water damage to everything below it, and roofing carries a long completed operations tail because a leak can surface years after the job closes. Handyman work sits at the bottom for the mirror-image reason. The individual jobs are small, low, dry, and quickly finished.
California vs Texas: why the same contractor pays different premiums
In brief: The same crew, with the same trade and the same limits, does not price the same in California as in Texas. State legal environment, repair costs, and carrier appetite move the number substantially, and California generally sits well above the national middle.
MoneyGeek’s contractor model spans roughly $204 to $596 per month across states at $1 million and $2 million limits, with California toward the upper end of that spread and Texas below it.
Be careful here, because the published sources disagree. Insureon’s own like-for-like general contractor comparison puts California at about $144 per month and Texas at about $152, which is the opposite ordering, and that figure is for general contractors specifically rather than for all trades. So the honest position is that the state effect is real and large enough to matter, but which of the two states prices higher depends on the trade, the carrier and the methodology behind the number you are reading. Do not assume a California quote will beat a Texas one, or the reverse, without pricing your own risk.
| Driver | California | Texas |
|---|---|---|
| Legal environment | More claim activity and higher settlement values | Generally lower claim severity |
| Repair and labor costs | High, which raises every property damage claim | Lower on average |
| Carrier appetite | Tighter, more risks pushed to surplus lines | Broader admitted market |
| Licensing interaction | CSLB licensing and workers comp rules shape the whole insurance stack | TDLR licensed trades such as electrical and air conditioning carry GL at the licence level |
That last row is the one Texas contractors miss. For several Texas trades, general liability is not only a contract requirement. It is a condition of holding the licence, with minimum limits set by the regulator. Insureon’s Texas contractor average of about $152 per month is a reasonable orientation point, but a licensed electrical or air conditioning contractor should be checking the required limits before shopping on price alone.
Cost by policy limits
In brief: Raising your limits costs far less than most contractors expect. Doubling coverage does not double the premium, because the first dollar of coverage is the expensive part. General contractor contracts commonly specify $1 million per occurrence and $2 million aggregate, so buying below that usually fails the contract anyway.
| Limits | Relative premium | When it makes sense |
|---|---|---|
| $500K / $1M | About 5 to 15 percent less | Rarely worth it. Many contracts will not accept the limit |
| $1M / $2M | The baseline most quotes are built on | The limit 92 percent of Insureon’s contractor customers buy, and the one most contracts specify |
| $2M / $4M | About 20 to 35 percent more | Larger commercial work, or when the contract demands it |
Those movements are indicative estimates from a single Texas agency, the Thumann Agency, rather than a national dataset, and the spread varies by carrier and trade. The shape is what matters: doubling your limits does not double your premium, because the first dollar of coverage carries most of the cost. Dropping below $1 million saves very little and frequently disqualifies you from the work.
The practical mistake is buying a cheap low-limit policy, then discovering at contract signing that the general contractor requires $1 million and $2 million with specific endorsements. At that point you are buying twice.
No policy yet but a GC wants a COI?
That is exactly what we do. We quote general liability the same business day and issue the certificate right after binding.
The 7 factors carriers use to price your GL policy
In brief: Underwriters price a contractor on seven inputs. Business size and trade classification do most of the work, revenue and payroll scale the exposure, and the remaining factors adjust it up or down. Knowing which ones you control is how you stop overpaying.
- Trade and class code. One of the largest levers, and the one most often recorded wrongly. A contractor rated in the wrong class code can pay a multiple of the correct price, in either direction, and the error can sit unnoticed for years.
- Annual revenue. General liability is commonly rated per thousand dollars of receipts, so revenue scales the premium directly.
- Payroll and employee count. More hands on site means more opportunity for third party injury and damage.
- Subcontractor use. If you hire subs and do not collect their certificates, their exposure can be rated as yours at audit.
- Claims history. Frequency matters more than severity. Three small claims often price worse than one large one.
- Limits and endorsements. Additional insured, primary and noncontributory, and waiver of subrogation each shift risk onto your policy, and carriers price for that.
- Carrier appetite and job type. The same risk is welcome to one carrier and declined by another. Appetite changes by state, by trade, and by year.
Cost in your city
In brief: Local market conditions move contractor premiums within a state, so we track general liability costs market by market. The guides below cover the metros where we place the most contractor policies in California and Texas.
- General liability insurance cost in Dallas
- General liability insurance cost in Houston
- General liability insurance cost in San Antonio
- General liability insurance cost in Fort Worth
- General liability insurance cost in Los Angeles
- General liability insurance cost in San Diego
- General liability insurance cost in Sacramento
What general liability does not cover, and what contractors buy alongside it
In brief: General liability covers third party bodily injury and property damage. It does not cover your tools, your employees, your truck, or the building you are constructing. Each of those is a separate policy, and contracts frequently require several of them together.
One thing the list below does not include, but the policy does, is personal and advertising injury, a defined set of offences such as libel, slander and copyright infringement in advertising. What follows is the general position under a standard policy; your own wording, endorsements and the facts of a loss decide any actual claim.
- Your tools and equipment: generally covered by inland marine rather than general liability.
- Employee injuries: covered by workers compensation. Rules differ sharply between California and Texas.
- Your work truck: generally covered by commercial auto. Personal auto policies vary in how they treat business use, and some exclude it, so check yours rather than assuming either way.
- The structure under construction: covered by builders risk while the job is in progress.
- Design decisions: covered by professional liability, which matters on design-build work.
For how the endorsements interact, see our guide to additional insured, primary and noncontributory, and waiver of subrogation, and our overview of the certificate of insurance itself.
How to lower your general liability premium without losing coverage
In brief: Most contractor savings come from accuracy, not from shopping. Correcting a class code, right-sizing limits to the contract, and collecting subcontractor certificates usually beat switching carriers for a small discount.
- Verify your class code first. This is the most common overpayment we find.
- Right-size limits to the contracts you actually sign. Not lower, not theatrically higher.
- Collect a certificate from every subcontractor. Uninsured sub payroll can land on your audit.
- Manage small claims. Frequency drives pricing more than any single loss.
- Pay annually where cash flow allows, to avoid instalment charges.
- Use a broker who shops multiple carriers rather than buying the first online quote. Appetite differs, and the difference is not visible from a single quote form.
“The cheapest online quote bought in ten minutes is often the one that gets a certificate rejected three weeks later, because the limits or the endorsements do not match what the contract actually asked for. Cheap is not the same as accepted.” Pascal Burke, Licensed Insurance Broker
What to have ready before you request a quote
In brief: A complete submission gets a firm number faster and usually a better one. Underwriters price uncertainty conservatively, so gaps in your information cost you money.
- Your trade and, if you know it, your class code
- Annual revenue, and the split if you work more than one trade
- Payroll and employee count
- Subcontractor spend, and whether they carry their own coverage
- Claims history for the last three to five years
- The limits and endorsements your contracts require
- The states you work in
Frequently asked questions
How much does general liability insurance cost per month for a contractor?
It depends far more on your trade than on your carrier. Published trade figures run from about $51 per month for handyman work to about $420 per month at the top of the demolition range, at $1 million and $2 million limits. Across whole populations, Insureon reports a construction average near $89 per month while MoneyGeek’s national contractor model puts it at about $337 per month. Treat published averages as orientation rather than a quote.
How much is a $1 million general liability policy?
A $1 million per occurrence and $2 million aggregate policy is the baseline most contractor quotes are built on, and it is the limit most general contractor contracts specify. Raising limits from there costs less than contractors expect, because the first dollar of coverage carries most of the price. Buying below $1 million usually fails the contract you are trying to sign, which means paying twice.
Why is general liability insurance more expensive in California than Texas?
It often does, but not reliably, and the published sources disagree. MoneyGeek’s contractor model spans roughly $204 to $596 per month across states with California toward the upper end, which fits the usual explanation of a more active claims environment, higher repair and labor costs, and tighter carrier appetite pushing more risks into surplus lines. Insureon’s like-for-like general contractor comparison, though, puts California near $144 per month and Texas near $152, the opposite way round. Treat the state effect as real but trade-specific and methodology-dependent rather than a fixed rule.
How fast can ContractorsInsured quote general liability for a contractor?
We quote general liability the same business day. ContractorsInsured.net is Pascal Burke Insurance Brokerage, Inc., licensed in California (#6015321) and Texas (#3305690), and we shop multiple admitted carriers rather than returning a single quote, and we issue the certificate of insurance right after binding. If a general contractor is holding up your start date over a certificate, that is the exact situation we handle most often.
What is the cheapest trade to insure?
Handyman and light repair work generally carries the lowest general liability rates, because jobs are small, low to the ground, dry, and quickly completed. Finishing trades such as painting and flooring sit slightly higher. Trades that combine height, water, fire, or heavy equipment, including roofing, excavation, and demolition, sit at or near the top of most carriers’ construction tables for the same limits.
Does general liability cover my tools?
No. General liability covers third party bodily injury and property damage, not your own property. Tools and equipment are covered by inland marine, sometimes sold as a tools and equipment floater. Many contractors discover this after a theft from a job site or a truck, which is the wrong moment to learn it. If tools matter to your operation, ask for inland marine alongside your general liability quote.
Do I need general liability insurance if I have no employees?
Not universally, but in practice very often. General liability is not the same thing as workers compensation, which covers employees. It covers injury and damage you cause to other people and their property. California requires liability insurance of CSLB licensees registered as an LLC, and several Texas licences, including electrical and air conditioning and refrigeration, carry their own insurance minimums. Beyond licensing, the contract is what usually forces the issue, and solo contractors are regularly asked for certificates too.
How can I get a same-day certificate of insurance (COI)?
Tell us the certificate holder, the required limits, and the endorsements your contract asks for, and we handle it. We quote general liability the same business day and issue the COI right after binding, which is usually what a contractor needs when a job start is blocked. You can request a COI here if you already know your requirements.
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If you want a real number instead of a national average, we can price your trade, your revenue, and your actual contract requirements. We are a licensed brokerage in California and Texas, we shop multiple admitted carriers, and we quote general liability the same business day.
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This guide is general information for contractors in California and Texas, not legal advice or a coverage determination. Published cost figures are drawn from third-party sources on different populations and methodologies, and are not quotes.