Best Insurance for Contractors 2026

Top-rated GL, WC, and BOP options for contractors of every trade. What you need, what it costs, and who to buy from. Updated October 2026.

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What Coverage Does a Contractor Need?

🛡️

General Liability

Required

Covers third-party injury and property damage. Required for contractor licenses in most states. Your #1 most important policy.

👷

Workers' Compensation

Required (with employees)

Covers employee injuries on the job. Legally required in most states once you have your first employee.

🚐

Commercial Auto

Required (if driving for work)

Personal auto does not cover business use. If you haul tools, drive to job sites, or use a van for work — you need commercial auto.

🔧

Tools & Equipment

Recommended

Covers your tools if stolen from a job site or your vehicle. Available as a rider to GL or standalone.

☂️

Umbrella / Excess Liability

For larger projects

Adds an extra layer of coverage above your GL limits. Required for many commercial and government contracts.

🏗️

Builders Risk

Project-specific

Covers a structure under construction. Often required on larger commercial projects.

Top Contractor Insurance Carriers

ERGO NEXT (NEXT Insurance)

#1 Best Online for Contractors

Fast online quote, instant COI, covers GL + WC + commercial auto for most contractor types. Best for solo to 20-person contracting businesses.

Pie Insurance

Best WC for Contractors

Specializes in small business workers comp. Competitive for trades. Pairs well with ERGO NEXT GL.

The Hartford

Best Established Carrier

Long track record, excellent claims handling. Better for contractors with 10+ employees or complex needs.

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Contractor Insurance FAQs

What insurance does a general contractor need?+
General contractors typically need: (1) General Liability — covers third-party injury and property damage, required by most licensing boards and clients; (2) Workers Compensation — required by law once you have employees; (3) Commercial Auto — if you or employees drive for work; (4) Tools & Equipment coverage — for tools and equipment damaged or stolen; and (5) an Umbrella policy for larger projects requiring higher limits.
How much does contractor insurance cost?+
Contractor insurance varies significantly by trade. A solo handyman might pay $600-$1,200/year for GL. A general contractor with 5 employees might pay $4,000-$10,000/year for GL + WC. An electrical contractor with 10 employees in California might pay $15,000-$30,000/year. The specific trades you perform, your revenue, and your claims history all drive the rate.
Does a contractor need insurance even as a sole proprietor?+
Absolutely. As a sole proprietor, you are personally liable for any claims against your business — an LLC does not exist to protect your personal assets. Additionally, most clients and property managers require proof of GL insurance (a certificate of insurance) before you set foot on their property. Without insurance, you cannot get most commercial contracts.
What is the difference between occurrence and claims-made GL for contractors?+
An occurrence policy covers claims for incidents that happened during the policy period, regardless of when the claim is filed. A claims-made policy only covers claims filed while the policy is active. For contractors whose work can result in claims years later (completed operations claims), an occurrence policy is strongly preferred.
Can I get contractor insurance same-day?+
Yes. With ERGO NEXT, you can get a quote, purchase contractor GL and WC, and download your certificate of insurance in about 10 minutes. This is particularly useful when you need to start a job today or respond to a client requirement quickly.

Related Guides

GL Requirements by State →Best Workers Comp 2026 →Certificate of Insurance Guide →