How Much Does Contractor Insurance Cost in Texas?

Factors Affecting Contractor Insurance Premiums

The cost of contractor insurance depends on several factors:

  • Trade type – Roofers pay more than painters due to higher risk.


  • Business size – More payroll and revenue usually means higher premiums.


  • Coverage mix – Liability-only is cheaper than full packages with auto, workers’ comp, and builder’s risk.


  • Location – Contractors in urban areas with more theft claims may pay more.



  • Claims history – Past losses increase your risk profile.

Typical Cost Ranges by Coverage

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$500–$1,500+ annually for small contractors

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Premiums based on payroll and trade classification

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Varies by vehicle and driving history

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Typically 1–4% of project value

Cost-Saving Tips for Contractors

Contractors can reduce premiums by:.


  • Bundling policies with one carrier
  • Maintaining a clean claims record
  • Implementing safety programs
  • Verifying subcontractor coverage
  • Using an independent agency like Ironwood to shop rates
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Return on Investment of Insurance

Premiums may feel costly, but one uncovered loss could bankrupt a small contractor. A single injury claim or damaged project can far outweigh annual premium costs. Proper coverage protects both your finances and your reputation.

Get a Personalized Quote

Every contracting business is different. Ironwood builds insurance packages based on your trade, size, and project profile, ensuring you only pay for what you need.

Frequently Asked Questions About Contractor Insurance Costs in Texas

  • What’s the average cost of contractor insurance?

    Small contractors may pay a few hundred for liability only; larger contractors with payroll and vehicles pay much more.

  • Why is my contractor insurance so expensive?

    High-risk trades, bigger payrolls, and prior claims drive costs up.

  • How can I lower my premiums?

    Bundle coverage, enforce safety programs, and let an independent agency like Ironwood shop around.