Running a contracting business means juggling tools, crews, clients, and risks. One of the biggest questions we from Illinois Insurance Center hear is: How much does contractor insurance cost? In particular, clients often ask: “What’s the price for contractor general liability insurance?” or “How much is general contractor insurance overall?” Let’s break this down in plain language, walk through what affects your cost, and show how working with us helps you find good coverage without paying more than you need to.
What Does “Contractor Insurance” Mean?
When people say “contractor insurance,” they usually mean a bundle of coverages that help protect a contracting business from losses, lawsuits, and liabilities. Key policies often include:
- Contractor general liability insurance (sometimes just called general liability) — covers third-party injuries or property damage
- Commercial auto insurance — if you use trucks or vans in your business
- Workers’ compensation insurance — required if you have employees, covers work injuries
- Tools and equipment coverage — for stolen or damaged tools
- Builder’s risk or project specific insurance — for works in progress
- Umbrella liability — extra layer of liability coverage above your standard limits
Each of those pieces adds to your cost. But the biggest driver is often general liability, because that protects you against claims if someone is hurt or property is damaged because of your work.
So when you ask “How much does contractor insurance cost?” you’re really asking about a mix of all those things. But to simplify, most contractors first look at contractor general liability insurance cost, since that’s usually the base layer.
Typical Price Ranges for Contractor General Liability Insurance in Illinois
To give you a ballpark:
- Some small contractors might pay as little as $20-$25 per month for basic liability coverage in favorable cases.
- More commonly, general liability insurance costs in Illinois run $60-$100 per month, or roughly $700-$1,200 per year for a $1 million / $2 million limit.
- The Hartford reports that Illinois businesses averaging in size pay about $79/month or $946/year for general liability.
- On the higher side, when you have heavier risk, more employees, or higher limits, some contractors nationwide see $142/month for their general liability portion.
Remember: these figures cover general liability only. When you add auto, workers’ comp, equipment, etc., your total contractor insurance cost can rise significantly.
What Alters the Contractor Insurance Cost?
Your specific premium depends on several factors. Think of them as knobs you can turn (to some degree) when shopping with a broker like us.
1. Type of contractor work / risk level
If your work involves roofing, demolition, or heavy structural work, insurers see more danger. That pushes rates higher. A light remodeling job is lower risk, so lower rates.
2. Coverage limits and deductibles
Choosing a $2 million limit instead of $1 million raises your premium. Picking a higher deductible (you pay more before insurance kicks in) lowers your premium.
3. Business size, payroll, and revenue
More revenue, bigger staff, and big projects mean more exposure. Insurers see more potential liability, so they charge more.
4. Number of subcontractors and whether they’re insured
If you hire subcontractors and list them on your policy (or require them to carry their own insurance), that can affect pricing.
5. Claims history
If you’ve had past claims or lawsuits, insurers view you as riskier. That will raise the premium.
6. Geographic area / ZIP code
Some areas have more litigation, more accidents, or higher property values. Your job sites’ locations matter.
7. Type and age of tools and equipment
If you insure expensive gear that’s transported often, that’s a higher risk.
8. Number of vehicles / trucks you run
More vehicles or heavier trucks add to your liability and auto exposure.
9. Credit score / business credit
Many insurers look at your business credit as an indicator of risk.
When we at Illinois Insurance Center go quote your coverages, we collect all this info—then shop across 20+ carriers to get you competitive rates.
Why Use a Broker (Illinois Insurance Center) to Shop Rather Than Go Direct?
Because we are a broker, not an insurance company, we bring advantages:
- We compare quotes from 20+ carriers to find the best coverage at the best price.
- We help you tailor coverages so you’re not overpaying for insurance you don’t need.
- We know which carriers like to write policies in higher risk trades (like roofing) and which don’t.
- We guide you through adding needed coverages (auto, workers’ comp, tools) so you’re not caught underinsured.
- When claims happen, we help you navigate the process, advocate for you, and work to get fair resolutions.
- As your business changes, we periodically review your policy so you have the right coverage as you grow, not stuck with an old policy having you outgrown it.
Because of this, your contractor insurance cost is optimized: enough protection without unnecessary extras.
Ways to Lower Contractor Insurance Cost (Smart Moves)
Here are steps to help lower your premium:
- Raise your deductibles a little (don’t go too high)—you absorb more small losses.
- Bundle multiple coverages (liability + auto + tools) with one carrier—many insurers give discounts.
- Maintain good safety practices: regular training, incident logs, safety gear.
- Keep underwriting clean: avoid claims, fix issues fast, keep exposure low.
- Limit subcontractor risk: make sure they carry insurance and have good track records.
- Limit coverage to needed zones/jobs: don’t pay for coverage in areas you don’t operate.
- Shop and renew wisely: we re-shop your policy at renewal time.
Each small adjustment can shave down your contractor insurance cost over time.
Why Working With Illinois Insurance Center Makes Sense
Since we shop across many carriers, we understand market pricing for contractors in Illinois. We know which insurer specializes in roofers, which one gives discounts for safety programs, which ones won’t write in certain ZIP codes. We’re your advocate.
When you reach out, we’ll:
- Ask you key questions (trade, tools, payroll, vehicle use, job locations)
- Pull multiple quotes across liability, auto, comp, tools
- Show you side-by-side cost vs coverage tradeoffs
- Help you pick the right package without paying for unneeded extras
- Stay in touch as your business scales, so your insurance keeps up
Thus, you get peace of mind, proper protection, and control over your contractor insurance cost.
Contact Illinois Insurance Center Now!
How much does contractor insurance cost? It depends. For general liability in Illinois, a modest contractor might see $60–$100/month, while full packages (liability + auto + comp + tools) could run several thousand dollars per year. Your trade, claims record, location, limits, and business size all matter.
As a broker, Illinois Insurance Center works to minimize your costs without sacrificing coverage. We shop for you, help you choose smart coverages, and guide you through claims and renewals.
If you’re a contractor in Illinois and want a no-obligation review or quote for your business, contact us at (708) 524-4900 or visit our Contact Page. Let’s find the best policy for you.
And if you’re looking for additional coverage, we also help with commercial auto, commercial truck, business insurance, and more:
We serve many parts of Illinois—check out our service area page.
Common Questions (FAQs)
Q: How much is general contractor insurance for a brand new small contractor?
A: If your business is tiny and low risk, you might see $20–$100 per month for basic general liability coverage. But be wary: that price may leave gaps in coverage or low limits.
Q: Is contractor general liability insurance required in Illinois?
A: Illinois doesn’t generally mandate general liability for contractors on a state law level, but clients, municipalities, or lenders often require it for projects or contracts. It’s de facto necessary to win work.
Q: Will electrician, plumber, roofer pay the same?
A: No. Electricians or plumbers often have lower rates (less risk of structural collapse) than roofers or demolition contractors. Your specific trade matters.
Q: What limit should I carry?
A: Many carry $1 million per occurrence / $2 million aggregate. If you take on bigger jobs, you may need $2 million / $4 million or more.
Q: Do I need commercial auto if I just use a van?
A: Yes. If you use a vehicle in your business (hauling tools, going to jobs), you need commercial auto, not personal auto.
Q: If I work across many counties, does that raise cost?
A: Yes. More locations, more exposure, more driving—insurers will charge more.
