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.

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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