How Much Does Contractor Insurance Cost in Washington?

The number one question Washington contractors ask when shopping for insurance is simple: how much is this going to cost me? It is a fair question, and the answer is more nuanced than most contractors expect. Your insurance costs depend on the type of coverage, the trade you work in, your revenue, your claims history, and several other factors.

This guide breaks down actual contractor insurance costs in Washington State by coverage type and trade, explains what drives those costs up or down, and shows you how to get the best rates without sacrificing the coverage you need. Whether you are a solo painter or a general contractor with a crew of twenty, understanding your insurance costs helps you price jobs accurately and protect your bottom line.

Average Contractor Insurance Costs in Washington

Before diving into trade-specific pricing, here is an overview of what Washington contractors typically pay for each type of coverage.

General Liability Insurance: $64.99-$199/month General liability is the foundation of your contractor insurance package. It covers third-party bodily injury, property damage, and advertising injury claims. Most Washington contractors pay between $64.99 and $199 per month depending on their trade, revenue, and coverage limits. Low-risk trades like painting and finish carpentry fall toward the bottom of that range, while higher-risk trades like roofing and excavation pay more.

Workers' Compensation: Varies by trade (paid quarterly through L&I) Washington operates a state-managed workers' comp system through the Department of Labor & Industries. Premiums are calculated per hours worked based on your risk classification code. Rates range from under $0.50 per hour for low-risk office work to over $3.00 per hour for high-risk construction trades. Unlike general liability, workers' comp is paid quarterly directly to L&I rather than to a private insurer.

Commercial Auto Insurance: $99-$200/month per vehicle If you use vehicles for business purposes---hauling materials, driving to job sites, transporting equipment---you need commercial auto coverage. Costs depend on the type of vehicle, driving records, coverage limits, and how the vehicles are used. A single work truck typically runs $99 to $200 per month. Fleets may qualify for volume discounts.

Contractor's Bond: $100-$300/year Washington requires all registered contractors to carry a $12,000 surety bond. Bond costs are based primarily on your personal credit score and claims history. Most contractors with decent credit pay $100 to $300 per year. Contractors with poor credit or prior bond claims may pay more or need to provide collateral.

Tools and Equipment Coverage: $25-$75/month An inland marine or tools and equipment policy covers your tools, machinery, and equipment against theft, damage, and loss---whether they are on a job site, in your truck, or in your shop. Costs depend on the total value of equipment being insured. A painter with $10,000 in sprayers and ladders pays less than an excavation contractor insuring a $200,000 piece of heavy equipment.

Professional Liability Insurance: $50-$150/month Also known as errors and omissions (E&O) insurance, professional liability covers claims arising from mistakes, design errors, or faulty advice in your professional services. This is most relevant for contractors who provide design-build services, consulting, or project management. Rates vary based on the scope of professional services offered and your annual revenue.

Costs by Contractor Trade

Insurance costs vary significantly by trade because different types of work carry different levels of risk. Here is what contractors in the most common Washington trades can expect to pay for general liability coverage.

General Contractors ($100-$250/month for GL)

General contractors typically pay more for insurance than specialty trades because they oversee entire projects and assume broader liability exposure. A GC is responsible for coordinating multiple subcontractors, managing job site safety, and delivering completed projects. That expanded scope of work means more potential for claims. A general contractor with $500,000 in annual revenue and standard $1 million/$2 million limits typically pays between $100 and $250 per month for general liability. GCs who perform hands-on work in addition to project management may pay toward the higher end.

Electricians ($85-$175/month for GL)

Electrical work carries moderate to high risk due to the potential for fire damage, electrocution injuries, and code violations. General liability for Washington electricians typically costs $85 to $175 per month. Factors that push costs higher include commercial and industrial work, which involves higher voltages and more complex systems compared to residential wiring. Electricians who also perform low-voltage work like data cabling or security systems may qualify for lower rates on that portion of their work.

Plumbers ($90-$200/month for GL)

Plumbing carries similar risk levels to electrical work. Water damage claims can be expensive, and work involving gas lines adds additional liability exposure. Washington plumbers typically pay $90 to $200 per month for general liability. Plumbers who specialize in new construction may pay differently than those focused on service and repair work, because the nature and frequency of potential claims differ between the two.

Roofers ($150-$350/month for GL)

Roofing is consistently one of the most expensive trades to insure. The combination of working at heights, handling hot materials, and the potential for significant water damage from improperly installed roofs drives premiums higher than most other trades. Washington roofers typically pay $150 to $350 per month for general liability. Some insurers are reluctant to write roofing policies at all, and those that do charge accordingly. Roofers who can demonstrate strong safety programs, experienced crews, and clean claims histories are in the best position to negotiate lower rates.

Painters and Finish Trades ($64.99-$125/month for GL)

Painting and finish carpentry are among the lowest-risk contractor trades, which translates directly to lower insurance costs. The work is typically performed at ground level or modest heights, involves limited risk of structural damage, and claims tend to be smaller when they do occur. Washington painters and finish carpenters can expect to pay $64.99 to $125 per month for general liability. This makes painting one of the most affordable trades to insure, which is welcome news for an industry where margins can be tight.

Landscapers ($65-$150/month for GL)

Landscaping insurance costs fall in the low to moderate range. Basic lawn care and maintenance carries less risk than hardscaping, tree removal, or irrigation work. A Washington landscaper focused on mowing and basic maintenance might pay as little as $65 per month for general liability, while a company that handles tree removal, retaining walls, and heavy equipment operation could pay $150 or more. The range within landscaping is wider than many contractors expect because the trade encompasses such a variety of work.

What Factors Affect Your Insurance Cost?

Understanding the factors that drive your premium helps you make informed decisions about coverage and identify opportunities to reduce costs.

Annual revenue is one of the primary rating factors for general liability insurance. Higher revenue means more business activity, more customer interactions, and statistically more exposure to claims. A contractor with $1 million in annual revenue will pay significantly more than one with $200,000, even if they perform the same type of work.

Number of employees affects both your general liability and workers' compensation costs. More employees means more payroll, more hours worked, and more people who could potentially cause or be involved in an incident. Workers' comp premiums scale directly with the number of employee hours worked each quarter.

Claims history has a major impact on your premiums. Contractors with a clean record---no claims filed in the past three to five years---typically qualify for the best rates. Previous claims signal higher risk to insurers, and your premiums will reflect that. Even a single large claim can increase your rates for several years.

Years in business works in your favor over time. New contractors pay more because they lack an established track record. As you accumulate years without major claims, insurers view you as lower risk and rates tend to decrease. Most contractors see meaningful rate improvements after three to five years of clean operations.

Coverage limits directly affect your premium. The standard $1 million per occurrence and $2 million aggregate policy is the baseline for most contractors. If you need higher limits---$2 million per occurrence or a $5 million umbrella policy---expect to pay 20 to 40 percent more. Some commercial and government projects require these higher limits, so the additional cost may be unavoidable for certain types of work.

Deductible amounts give you some control over your premium. Choosing a higher deductible---say $2,500 instead of $1,000---lowers your monthly premium because you are absorbing more of the initial cost of any claim. This makes sense for contractors with strong cash reserves who want to reduce their ongoing insurance expenses.

Type of work matters beyond just your trade classification. Residential work is generally rated differently than commercial work. Commercial projects typically involve higher property values, more stringent contract requirements, and larger potential claims. A contractor who works exclusively on single-family residential projects will usually pay less than one who takes on commercial or government contracts.

How to Lower Your Contractor Insurance Costs

There are practical steps every Washington contractor can take to reduce insurance costs without cutting corners on coverage.

Bundle your policies. Purchasing general liability, commercial auto, tools and equipment, and other coverages from the same insurer often qualifies you for a multi-policy discount. Bundling also simplifies your administration since you deal with one insurer, one renewal date, and one point of contact.

Maintain a clean claims history. This is the single most effective way to keep premiums low over time. Implement safety programs, provide proper training, hold regular safety meetings, and address hazards immediately. Every claim you avoid keeps your experience modification factor low and your premiums in check.

Invest in safety programs. Formal safety programs, OSHA training certifications, and documented safety procedures demonstrate to insurers that you take risk management seriously. Some carriers offer specific discounts for contractors with written safety plans and regular training programs.

Choose higher deductibles strategically. If your business has healthy cash reserves and can absorb a $2,500 or $5,000 deductible without financial strain, the premium savings can be meaningful over time. Just make sure you can actually cover the deductible if a claim occurs.

Report payroll and revenue accurately. Overestimating your revenue or payroll at the start of a policy means you pay more than necessary upfront. Underestimating leads to a large audit bill at the end of the policy term. Provide accurate figures and update them if your business changes significantly during the policy period.

Shop around and compare quotes. Insurance rates vary between carriers, sometimes significantly. Getting quotes from multiple sources ensures you are seeing the competitive market rate for your specific situation. However, price should not be the only factor---the insurer's claims handling reputation, financial stability, and willingness to issue certificates quickly all matter for contractors.

Hidden Costs of Being Underinsured

Trying to save money by carrying minimal insurance or skipping coverage altogether often costs more in the long run. Here are the real consequences of being underinsured.

Contract requirements you cannot meet. Many general contractors, property owners, and government agencies require subcontractors to carry specific minimum coverage limits---typically $1 million/$2 million for general liability. If you do not meet these requirements, you lose the bid. The jobs you miss out on often represent far more revenue than the insurance would have cost.

Personal asset exposure. If a claim exceeds your coverage limits, or if you have no coverage at all, your personal assets are at risk. In Washington, a sole proprietor's personal home, savings, and other assets can be pursued to satisfy a judgment. A single serious injury or significant property damage claim can exceed $1 million, which would be devastating without adequate coverage.

L&I penalties and registration loss. Operating without required L&I registration and workers' comp coverage exposes you to fines of $5,000 to $10,000 per violation. If L&I suspends your registration, you cannot legally work until compliance is restored, which means lost income on top of the penalties.

Damaged reputation. In the age of online reviews and contractor referral networks, a public dispute over uninsured damages can permanently harm your reputation. Customers and general contractors check L&I registration status and ask for proof of insurance. Being unable to provide it raises immediate red flags.

Get Your Personalized Quote

Every contractor's insurance costs are unique. The ranges in this guide give you a general framework, but the only way to know your exact cost is to get a quote based on your specific trade, revenue, claims history, and coverage needs.

SmartInsured specializes in contractor insurance for Washington State businesses. We work with multiple carriers to find competitive rates for every trade, from painters and landscapers to roofers and general contractors. Coverage starts at $64.99/month for general liability, and most policies can be bound the same day with certificates of insurance issued immediately.

Get your personalized quote by visiting our quote form or calling us at 425-209-1206. Our team understands Washington contractor requirements and can help you build a complete coverage package that protects your business without overpaying. Whether you are just starting out or looking to improve your current coverage, we are here to help.