Contractor Insurance Coverage Requirements Calculator

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

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Contractor Insurance Coverage Requirements Calculator

Estimate the recommended minimum insurance coverage amounts for your contracting business based on project value, trade type, workforce size, and common state requirements.

Trade / Contractor Type

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

Largest Single Project Value ($)

Estimated Annual Revenue ($)

Number of Employees (including owner)

Number of Subcontractors Used Annually

Primary Work Type

Residential Commercial Industrial Government / Public Works

Number of Business Vehicles

Total Equipment / Tools Value ($)

Calculate Coverage Requirements

function conCalc() { // --- Gather inputs --- var trade = document.getElementById('con-trade').value; var projectValue = parseFloat(document.getElementById('con-project-value').value); var annualRev = parseFloat(document.getElementById('con-annual-revenue').value); var employees = parseInt(document.getElementById('con-employees').value); var subs = parseInt(document.getElementById('con-subcontractors').value); var workType = document.getElementById('con-work-type').value; var vehicles = parseInt(document.getElementById('con-vehicles').value); var equipValue = parseFloat(document.getElementById('con-equipment-value').value);

// --- Validation --- var errors = []; if (isNaN(projectValue) || projectValue 0) { resultDiv.style.display = 'block'; resultDiv.innerHTML = 'Please fix the following:' + errors.map(function(e){ return ''; }).join('') + ''; return; }

// ============================================================ // TRADE RISK MULTIPLIERS // Higher-risk trades require higher GL limits // Sources: ISO GL rating, NCCI, industry underwriting guides // ============================================================ var tradeRisk = { general: 1.50, electrical: 1.40, plumbing: 1.30, roofing: 1.80, // highest-risk trade hvac: 1.35, landscaping: 1.10, painting: 1.15, concrete: 1.25, carpentry: 1.20, demolition: 1.70 };

// Work-type multipliers var workMult = { residential: 1.00, commercial: 1.25, industrial: 1.50, government: 1.75 // bonding & higher limits often required };

var riskMult = tradeRisk[trade] * workMult[workType];

// ============================================================ // 1. GENERAL LIABILITY (GL) // Base formula: // Per-Occurrence = max(1,000,000, projectValue * riskMult * 0.20) // Aggregate = max(2,000,000, annualRev * riskMult * 0.30) // Both rounded up to nearest $500,000 // Standard minimum: $1M/$2M (ISO CGL form) // ============================================================ var glPerOcc = Math.max(1000000, projectValue * riskMult * 0.20); var glAgg = Math.max(2000000, annualRev * riskMult * 0.30); glPerOcc = Math.ceil(glPerOcc / 500000) * 500000; glAgg = Math.ceil(glAgg / 500000) * 500000; // Aggregate must be at least 2x per-occurrence if (glAgg 10 employees // ============================================================ var elBodily = 100000; // per accident var elDisease = 500000; // policy limit var elDiseaseEe = 100000; // per employee if (employees > 10 || trade === 'roofing' || trade === 'demolition') { elBodily = 500000; elDisease = 1000000; elDiseaseEe = 500000; }

// ============================================================
// 3. COMMERCIAL AUTO
// Combined Single Limit (CSL) per accident
// Base: $1,000,000 CSL (standard for commercial)
// Elevated if >3 vehicles or industrial/government work
// ============================================================
var autoCsl = 1000000;
if (vehicles > 3 || workType === 'industrial' || workType === 'government') {
autoCsl = 2000000;
}
var autoNote = vehicles === 0
? "No business vehicles reported — consider hired/non-owned auto coverage.": "CSL per accident for " + vehicles + " vehicle(s).";

// ============================================================ // 4. UMBRELLA / EXCESS LIABILITY // Recommended when GL aggregate $2M // Formula: // umbrellaLimit = max(1,000,000, // projectValue - glPerOcc, // annualRev * 0.50 - glAgg) // Rounded to nearest $1,000,000; min $1M if needed // ============================================================ var umbrellaNeeded = (projectValue > glPerOcc) || (annualRev > 2000000) || workType === 'government' || workType === 'industrial'; var umbrellaLimit = 0; if (umbrellaNeeded) { umbrellaLimit = Math.max( 1000000, projectValue - glPerOcc, annualRev * 0.50 - glAgg ); umbrellaLimit = Math.ceil(umbrellaLimit / 1000000) * 1000000; }

// ============================================================ // 5. TOOLS & EQUIPMENT (Inland Marine) // Recommended limit = equipValue (replacement cost) // Minimum $10,000 if equipment reported // ============================================================ var equipCoverage = equipValue > 0 ? Math.max(10000, equipValue) : 0;

// ============================================================ // 6. CONTRACTOR'S ERRORS & OMISSIONS (Professional Liability) // Recommended for design-build, HVAC, electrical, general // Per-claim limit = max(500,000, annualRev * 0.25) // ============================================================ var eoTrades = ['general','electrical','hvac']; var eoNeeded = eoTrades.indexOf(trade) !== -1 || workType === 'commercial' || workType === 'government'; var eoLimit = 0; if (eoNeeded) { eoLimit = Math.max(500000, annualRev * 0.25); eoLimit = Math.ceil(eoLimit / 250000) * 250000; }

// ============================================================ // 7. SURETY / PERFORMANCE BOND // Typically required for government/public works // Bond amount = projectValue (100% of contract value) // ============================================================ var bondAmount = (workType === 'government') ? projectValue : 0;

// ============================================================
// 8. SUBCONTRACTOR COVERAGE REQUIREMENT
// If using subs, require them to carry GL equal to your GL limits
// and add you as Additional Insured
// ============================================================
var subReq = subs > 0
? "Require each subcontractor to carry GL of at least "
+ fmt(glPerOcc) + " per occurrence / " + fmt(glAgg)
+ " aggregate and name you as Additional Insured.": "No subcontractors reported.";

// ============================================================ // ESTIMATED ANNUAL PREMIUM RANGES (rough benchmarks) // GL: $500–$3,000 per $1M coverage + revenue/payroll factors // WC: $1.50–$8.00 per $100 payroll (trade-dependent) // Auto: $1,200–$2,500 per vehicle // Umbrella: $500–$1,500 per $1M // ============================================================ var avgPayroll = employees * 55000; // assumed avg annual payroll var wcRateMap = { general:1.80, electrical:2.20, plumbing:2.00, roofing:7.50, hvac:2.10, landscaping:3.50, painting:2.80, concrete:3.00, carpentry:2.50, demolition:5.00 }; var wcRate = wcRateMap[trade] || 2.50; var wcPremiumEst = (avgPayroll / 100) * wcRate;

var glPremiumEst = (glPerOcc / 1000000) * 1200 * riskMult; var autoPremEst = vehicles * 1800; var umbPremEst = umbrellaNeeded ? (umbrellaLimit / 1000000) * 800 : 0; var eoPremEst = eoNeeded ? (eoLimit / 1000000) * 1500 : 0; var totalPremLow = (glPremiumEst * 0.80) + (wcPremiumEst * 0.85) + (autoPremEst * 0.85) + (umbPremEst * 0.80) + (eoPremEst * 0.80); var totalPremHigh = (glPremiumEst * 1.30) + (wcPremiumEst * 1.20) + (autoPremEst * 1.20) + (umbPremEst * 1.30) + (eoPremEst * 1.30);

function fmt(n) { return '$' + Math.round(n).toLocaleString('en-US'); } function fmtRange(lo, hi) { return fmt(lo) + ' – ' + fmt(hi); }

// ============================================================ // BUILD OUTPUT // ============================================================ var html = '### Recommended Coverage Requirements ';

html += '' + '' + 'Coverage Type' + 'Recommended Limit' + 'Notes' + '';

var rows = [

{

type: 'General Liability (GL)',

limit: fmt(glPerOcc) + ' / ' + fmt(glAgg),

note: 'Per occurrence / aggregate. ISO CGL form recommended.'

},

{

type: "Workers' Compensation",

limit: 'Statutory (unlimited medical)',

note: 'Required in most states for ' + employees + ' employee(s).'

},

{

type: "Employers Liability",

limit: fmt(elBodily) + ' / ' + fmt(elDisease) + ' / ' + fmt(elDiseaseEe),

note: 'Bodily injury per accident / disease policy / disease per employee.'

},

{

type: 'Commercial Auto',

limit: vehicles > 0 ? fmt(autoCsl) + ' CSL' : 'N/A',

note: autoNote

},

{

type: 'Umbrella / Excess Liability',

limit: umbrellaNeeded ? fmt(umbrellaLimit) : 'Not Required*',

note: umbrellaNeeded

? 'Sits above GL, auto, and employers liability.'

'*Recommended if project values or revenue grow.'

},

{

type: 'Tools & Equipment (Inland Marine)',

limit: equipCoverage > 0 ? fmt(equipCoverage) : 'N/A',

note: equipCoverage > 0

? 'Replacement cost basis for tools and equipment.'

'No equipment value entered.'

},

{

type: "Contractor's E&O / Professional Liability",

limit: eoNeeded ? fmt(eoLimit) + ' per claim' : 'Not Required*',

note: eoNeeded

? 'Covers design errors, faulty workmanship claims.'

'*Consider if offering design-build services.'
},
{
type: 'Surety / Performance Bond',
limit: bondAmount > 0 ? fmt(bondAmount) : 'Not Required',
note: bondAmount > 0
? '100% of contract value — required for public works.': 'Typically required for government contracts only.' } ];

rows.forEach(function(r, i) { var bg = i % 2 === 0 ? '#f8fafc' : '#fff'; html += '' + '' + r.type + '' + '' + r.limit + '' + '' + r.note + '' + ''; });

html += '';

// Subcontractor requirement html += '' + 'Subcontractor Insurance Requirement: ' + subReq + '';

// Premium estimate html += '' + 'Estimated Annual Premium Range (all coverages): ' + fmtRange(totalPremLow, totalPremHigh) + 'Rough benchmark only. Actual premiums depend on claims history, credit, location, and carrier underwriting.' + '';

// Risk tier var riskLabel = riskMult ' + 'Risk Tier: ' + riskLabel + ' (Trade multiplier: ' + tradeRisk[trade].toFixed(2) + ' × Work-type multiplier: ' + workMult[workType].toFixed(2) + ' = ' + riskMult.toFixed(2) + ')' + '';

resultDiv.style.display = 'block'; resultDiv.innerHTML = html; }

#### Formulas Used

General Liability — Per Occurrence: max($1,000,000 , Project Value × Trade Risk Multiplier × Work-Type Multiplier × 0.20) → rounded up to nearest $500K

General Liability — Aggregate: max($2,000,000 , Annual Revenue × Trade Risk Multiplier × Work-Type Multiplier × 0.30) → rounded up to nearest $500K; must be ≥ 2× per-occurrence

Umbrella / Excess: max($1,000,000 , Project Value − GL Per-Occurrence , Annual Revenue × 0.50 − GL Aggregate) → rounded to nearest $1M

Workers' Comp Premium Estimate: (Employees × $55,000 avg payroll) ÷ 100 × Trade NCCI Rate per $100 payroll

E&O / Professional Liability: max($500,000 , Annual Revenue × 0.25) → rounded to nearest $250K

Trade Risk Multipliers: Roofing 1.80 · Demolition 1.70 · General 1.50 · Electrical 1.40 · HVAC 1.35 · Plumbing 1.30 · Concrete 1.25 · Carpentry 1.20 · Painting 1.15 · Landscaping 1.10

Work-Type Multipliers: Government 1.75 · Industrial 1.50 · Commercial 1.25 · Residential 1.00

#### Assumptions & References

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