Contractor Insurance Coverage Estimator
Estimate recommended General Liability, Workers' Compensation, and Commercial Auto insurance coverage amounts based on your contracting business profile.
Formulas Used
General Liability Premium (estimate):
GL Premium = (Annual Revenue ÷ 1,000) × Trade GL Rate × Work-Type Multiplier × Subcontractor Factor
Per-Occurrence Limit = MAX($1,000,000 ; ROUNDUP(Largest Project × 2, nearest $500k))
Aggregate Limit = MAX($2,000,000 ; Per-Occurrence × 2)
Workers' Compensation Premium (estimate):
WC Premium = (Annual Payroll ÷ 100) × Trade WC Rate × Work-Type Multiplier
Employer's Liability limits scale with employee count: <5 → $100k/$500k/$100k; 5–20 → $500k; >20 → $1M
Commercial Auto Premium (estimate):
Auto Premium = Number of Vehicles × $1,200 base × Work-Type Multiplier
Umbrella / Excess Liability:
Triggered when Revenue > $1M, Largest Project > $500k, or Industrial work.
Umbrella Limit = MAX($1M ; ROUNDUP(Largest Project, nearest $1M))
Umbrella Premium ≈ $800 per $1M of coverage
Work-Type Multipliers: Residential = 1.0×, Commercial = 1.25×, Industrial = 1.50×
Assumptions & References
- GL base rates derived from ISO (Insurance Services Office) commercial GL classification rate ranges for contractor trades.
- Workers' Compensation rates based on NCCI (National Council on Compensation Insurance) class code averages; actual rates vary significantly by state.
- Commercial auto base rate of $1,200/vehicle reflects industry average for light-duty contractor vehicles (IIHS / carrier surveys).
- Umbrella pricing of ~$800 per $1M is a market average for contractor umbrella policies (Travelers, Zurich, CNA benchmarks).
- Subcontractor loading of +15% on GL reflects additional insured exposure and completed-operations risk.
- Minimum GL limits of $1M/$2M are required by most general contractors and project owners per AIA contract standards.
- Employer's Liability limits follow standard industry tiers recommended by IRMI (International Risk Management Institute).
- Estimates do not account for claims history (experience modification factor), deductibles, state-specific surcharges, or endorsements.
- This tool is for educational estimation only and does not constitute an insurance quote or professional advice.