Contractor Insurance Coverage Calculator

ANA›Life Services Authority›National Calculator Authority›Contractor Insurance Coverage Calculator

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Contractor Insurance Coverage Calculator

Estimate recommended insurance coverage limits for general liability, workers' compensation, commercial auto, and umbrella policies based on your contracting business profile.

Annual Business Revenue ($)

Largest Single Project Value ($)

Number of Employees (including owner)

Number of Subcontractors Used Annually

Number of Business Vehicles

Trade / Contractor Type

General Contractor Electrical Plumbing Roofing HVAC Painting Landscaping Concrete / Masonry Framing / Carpentry

Primary Work Type

Residential Commercial Industrial Mixed

Prior Insurance Claims (last 3 years)

None 1 claim 2 claims 3+ claims

Calculate Coverage

function conCalc() { var revenue = parseFloat(document.getElementById('con-revenue').value); var projectSize = parseFloat(document.getElementById('con-project-size').value); var employees = parseInt(document.getElementById('con-employees').value); var subcontractors= parseInt(document.getElementById('con-subcontractors').value); var vehicles = parseInt(document.getElementById('con-vehicles').value); var trade = document.getElementById('con-trade').value; var workType = document.getElementById('con-work-type').value; var claims = parseInt(document.getElementById('con-claims').value);

// --- Input Validation --- var errors = []; if (isNaN(revenue) || revenue 0) { document.getElementById('con-result').innerHTML = 'Please fix the following:' + errors.join('') + '

'; return; }

// ----------------------------------------------------------------------- // TRADE RISK MULTIPLIERS // Source: ISO GL classification risk tiers; roofing/electrical highest risk // ----------------------------------------------------------------------- var tradeRisk = { general: 1.30, electrical: 1.40, plumbing: 1.25, roofing: 1.60, hvac: 1.30, painting: 1.10, landscaping: 1.00, concrete: 1.20, framing: 1.25 };

// WORK TYPE MULTIPLIERS var workRisk = { residential: 1.00, commercial: 1.20, industrial: 1.40, mixed: 1.15 };

// CLAIMS SURCHARGE MULTIPLIERS var claimsMult = [1.00, 1.15, 1.30, 1.50];

var tRisk = tradeRisk[trade] || 1.20; var wRisk = workRisk[workType] || 1.00; var cMult = claimsMult[Math.min(claims, 3)];

// ----------------------------------------------------------------------- // 1. GENERAL LIABILITY (GL) COVERAGE // // Base GL = max(Revenue × 2, Largest Project × 3, $1,000,000 minimum) // Adjusted GL = Base GL × tradeRisk × workRisk × claimsMult // Rounded up to nearest $500,000; capped at $10,000,000 per occurrence // // Industry standard: GL limits typically 2× revenue or 3× largest project // (ISO CGL form; IRMI Contractor Insurance Guide) // ----------------------------------------------------------------------- var baseGL = Math.max(revenue * 2, projectSize * 3, 1000000); var adjGL = baseGL * tRisk * wRisk * cMult; // Round up to nearest $500,000 var glOccurrence = Math.ceil(adjGL / 500000) * 500000; glOccurrence = Math.min(glOccurrence, 10000000); // Aggregate is typically 2× occurrence var glAggregate = glOccurrence * 2;

// ----------------------------------------------------------------------- // 2. WORKERS' COMPENSATION (WC) COVERAGE // // WC is statutory (unlimited employer liability in most states). // Employer's Liability limits recommended: // Base = $100,000 per occurrence (statutory minimum) // Adjusted for employee count and trade risk: // empFactor = 1 + (employees - 1) × 0.05 (5% per additional employee) // Recommended EL limit = $100,000 × empFactor × tradeRisk × claimsMult // Rounded to nearest $100,000; min $100,000, max $1,000,000 // // Source: NCCI WC rating; standard EL limits $100K/$500K/$1M // ----------------------------------------------------------------------- var empFactor = 1 + (employees - 1) * 0.05; var elBase = 100000; var elAdj = elBase * empFactor * tRisk * cMult; var elLimit = Math.ceil(elAdj / 100000) * 100000; elLimit = Math.max(100000, Math.min(elLimit, 1000000));

// Annual WC Premium Estimate (rough): // WC Premium ≈ (Payroll / 100) × classRate // Assume avg payroll per employee = $55,000; class rates vary 1%–15% var classRates = { general: 0.08, electrical: 0.07, plumbing: 0.07, roofing: 0.15, hvac: 0.07, painting: 0.06, landscaping: 0.05, concrete: 0.09, framing: 0.09 }; var classRate = classRates[trade] || 0.08; var estPayroll = employees * 55000; var wcPremEst = (estPayroll / 100) * (classRate * 100) * cMult;

// ----------------------------------------------------------------------- // 3. COMMERCIAL AUTO COVERAGE // // Combined Single Limit (CSL) per vehicle: // Base CSL = $1,000,000 (industry standard for contractors) // Adjusted = $1,000,000 × workRisk × claimsMult // Rounded to nearest $250,000; min $500,000, max $2,000,000 // // Source: ISO Business Auto Policy; FMCSA minimums for commercial vehicles // ----------------------------------------------------------------------- var autoCSL = 0; var autoNote = "No business vehicles — commercial auto not required."; if (vehicles > 0) { var baseCSL = 1000000; var adjCSL = baseCSL * wRisk * cMult; autoCSL = Math.ceil(adjCSL / 250000) * 250000; autoCSL = Math.max(500000, Math.min(autoCSL, 2000000)); autoNote = ""; }

// ----------------------------------------------------------------------- // 4. UMBRELLA / EXCESS LIABILITY // // Umbrella = max(GL Occurrence × 1.5, Largest Project × 2, $1,000,000) // Adjusted = base × workRisk × claimsMult // Rounded to nearest $1,000,000; min $1,000,000, max $25,000,000 // // Rule of thumb: umbrella should be ≥ 1.5× primary GL limit // (IRMI Umbrella Liability Guide) // ----------------------------------------------------------------------- var umbrellaBase = Math.max(glOccurrence * 1.5, projectSize * 2, 1000000); var umbrellaAdj = umbrellaBase * wRisk * cMult; var umbrella = Math.ceil(umbrellaAdj / 1000000) * 1000000; umbrella = Math.max(1000000, Math.min(umbrella, 25000000));

// ----------------------------------------------------------------------- // 5. SUBCONTRACTOR / ADDITIONAL INSURED EXPOSURE // // If subcontractors > 0, recommend requiring certificates of insurance. // Minimum sub GL requirement = your own GL occurrence limit. // ----------------------------------------------------------------------- var subNote = ""; if (subcontractors > 0) { subNote = "- Require subcontractors to carry GL of at least " + fmt(glOccurrence) + " per occurrence and name you as Additional Insured."; }

// ----------------------------------------------------------------------- // 6. ESTIMATED ANNUAL PREMIUM RANGES (rough industry benchmarks) // // GL Premium ≈ (Revenue / 1,000) × GL rate per $1,000 revenue // GL rates by trade (per $1,000 revenue): roofing ~$15, electrical ~$10, // plumbing ~$9, general ~$8, others ~$5–$7 // ----------------------------------------------------------------------- var glRates = { general: 8, electrical: 10, plumbing: 9, roofing: 15, hvac: 8, painting: 6, landscaping: 5, concrete: 9, framing: 9 }; var glRate = glRates[trade] || 8; var glPremLow = (revenue / 1000) * glRate * wRisk * cMult * 0.85; var glPremHigh= (revenue / 1000) * glRate * wRisk * cMult * 1.15; glPremLow = Math.max(glPremLow, 750); glPremHigh = Math.max(glPremHigh, 1200);

var autoPremLow = vehicles > 0 ? vehicles * 1200 * cMult : 0; var autoPremHigh = vehicles > 0 ? vehicles * 2000 * cMult : 0;

var umbPremLow = (umbrella / 1000000) * 400 * wRisk * cMult; var umbPremHigh = (umbrella / 1000000) * 700 * wRisk * cMult;

var totalLow = glPremLow + wcPremEst * 0.9 + autoPremLow + umbPremLow; var totalHigh = glPremHigh + wcPremEst * 1.1 + autoPremHigh + umbPremHigh;

// ----------------------------------------------------------------------- // FORMAT OUTPUT // ----------------------------------------------------------------------- function fmt(n) { return '$' + Math.round(n).toLocaleString('en-US'); }

var autoRow = vehicles > 0
? "Commercial Auto (CSL per vehicle)" + fmt(autoCSL) + ""
"Commercial AutoNot applicable (0 vehicles)";
var autoPremRow = vehicles > 0
? "Commercial Auto Premium Est." + fmt(autoPremLow) + " – " + fmt(autoPremHigh) + "/yr"
"";

document.getElementById('con-result').innerHTML = "### Recommended Coverage Limits " + "" + "" + "Coverage" + "Recommended Limit" + "General Liability — Per Occurrence" + fmt(glOccurrence) + "" + "General Liability — Annual Aggregate" + fmt(glAggregate) + "" + "Employer's Liability (WC) — Per Occurrence" + fmt(elLimit) + "" + "" + autoRow.replace('','').replace('','') + "" + "Umbrella / Excess Liability" + fmt(umbrella) + "" + "" +

"### Estimated Annual Premium Ranges " + "" + "" + "Policy" + "Estimated Range" + "General Liability" + fmt(glPremLow) + " – " + fmt(glPremHigh) + " / yr" + "Workers' Compensation" + fmt(wcPremEst * 0.9) + " – " + fmt(wcPremEst * 1.1) + " / yr" + autoPremRow + "Umbrella / Excess" + fmt(umbPremLow) + " – " + fmt(umbPremHigh) + " / yr" + "Total Estimated Premium" + fmt(totalLow) + " – " + fmt(totalHigh) + " / yr" + "" +

(subNote ? "### Subcontractor Requirements " + subNote + "" : "") +

"" + "Risk Profile: Trade multiplier: " + tRisk.toFixed(2) + " | Work-type multiplier: " + wRisk.toFixed(2) + " | Claims surcharge: " + ((cMult - 1) * 100).toFixed(0) + "%" + "

"; }

#### Formulas Used

General Liability (Per Occurrence): Base GL = max(Revenue × 2, Largest Project × 3, $1,000,000) Adjusted GL = Base GL × Trade Risk Factor × Work-Type Factor × Claims Surcharge Final GL = Round up to nearest $500,000 (cap $10,000,000)

GL Aggregate: GL Occurrence × 2

Employer's Liability (Workers' Comp): EL = $100,000 × [1 + (Employees − 1) × 0.05] × Trade Risk × Claims Surcharge Rounded to nearest $100,000 (min $100K, max $1M)

Commercial Auto (CSL per vehicle): CSL = $1,000,000 × Work-Type Factor × Claims Surcharge Rounded to nearest $250,000 (min $500K, max $2M)

Umbrella / Excess Liability: Base = max(GL Occurrence × 1.5, Largest Project × 2, $1,000,000) Umbrella = Base × Work-Type Factor × Claims Surcharge Rounded to nearest $1,000,000 (min $1M, max $25M)

WC Premium Estimate: WC Premium ≈ (Employees × $55,000 payroll / 100) × Class Rate × Claims Surcharge

GL Premium Estimate: GL Premium ≈ (Revenue / 1,000) × Trade GL Rate × Work-Type Factor × Claims Surcharge

#### Assumptions & References

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References

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