Construction Insurance Costs by Trade: Electricians, Plumbers, Roofers, and More

Insurance costs vary dramatically depending on which construction trade you work in. A painter and a roofer may both be contractors, but their insurance premiums can differ by two to three times or more. Understanding what your specific trade should expect to pay---and why---helps you budget accurately and price your jobs competitively.

This guide breaks down insurance costs for ten common construction trades in Washington State, explains the coverage types every trade needs, and shows you how to keep your rates as low as possible.

Why Insurance Costs Vary by Trade

Insurance premiums are not arbitrary. Carriers use decades of actuarial data to classify trades by risk level, and those classifications drive the base rates for every policy.

Risk classification determines base rates. Every construction trade is assigned a risk classification code based on the type of work performed. These codes assign a base rate reflecting the historical cost of insuring that work. Roofing carries a much higher classification rate than interior painting because the likelihood and severity of claims are fundamentally different.

Injury frequency and severity data by trade. Insurers track how often workers in each trade file claims and how expensive those claims are on average. Trades with frequent injuries---even minor ones---pay higher workers' compensation rates. Trades where injuries tend to be severe, like falls from heights in roofing or electrical burns, pay even more because each claim carries a larger dollar value.

Property damage exposure differences. Some trades carry higher risk of damaging a client's property or the work of other trades on a job site. A plumber who causes a water leak can damage drywall, flooring, and personal property throughout a structure. An electrician's wiring error can cause a fire. These property damage exposures are reflected in general liability rates.

Historical claims data drives pricing. Insurance is a data-driven business. The more claims a trade generates over time, the higher the premiums for everyone in that trade. This is why roofing and demolition pay significantly more than painting and flooring---the data shows more frequent and more expensive claims.

Insurance Costs by Trade

The following cost ranges reflect typical Washington State pricing for established contractors with clean claims histories. New contractors, those with prior claims, or those performing unusually high-risk work within their trade may pay outside these ranges.

General Contractors

General Liability: $100-$250/month

General contractors carry the broadest liability exposure because they oversee the entire scope of work. Even when subcontractors perform the hands-on labor, the GC is responsible for job site safety, project coordination, and overall quality. Workers' compensation rates fall in the medium-high range, reflecting supervisory risks and the hands-on work many GCs perform themselves. GCs also need the widest array of coverage types---general liability, workers' comp, commercial auto, inland marine, umbrella, and often professional liability for design-build services.

Electricians

General Liability: $85-$175/month

Electrical work is rated as moderate risk for general liability, but one hazard dominates the underwriting conversation: fire. Faulty wiring, improper installations, and code violations can cause fires that destroy entire structures, generating claims in the hundreds of thousands or millions of dollars. Fire risk is the single biggest factor in electrician insurance pricing. Workers' compensation rates are moderate, reflecting risks from electrical shock, burns, and falls from ladders. Electricians working on commercial or industrial projects with higher voltages typically pay toward the upper end of the range.

Plumbers

General Liability: $90-$200/month

Water damage is to plumbing what fire is to electrical work---the dominant risk that drives insurance costs. A single improperly soldered joint, a failed connection, or a missed leak can cause thousands of dollars in water damage to floors, walls, ceilings, and personal property. These water damage claims are frequent and expensive, which is why plumbing general liability rates run slightly higher than electrical. Workers' compensation rates fall in the medium range, with common injuries including back strains from working in tight spaces, cuts, and burns from soldering. Plumbers who also handle gas line work face additional liability exposure and may pay higher premiums.

Roofers

General Liability: $150-$350/month

Roofing is consistently one of the most expensive construction trades to insure. Working at significant heights, handling hot materials like tar and torch-down membranes, and the catastrophic potential of a poorly installed roof that leaks all create a risk profile that commands premium rates. Falls are the number one cause of serious injuries and fatalities in roofing, making workers' compensation rates among the highest of any trade. Some carriers refuse to write roofing policies altogether. Roofers with experienced crews, rigorous safety programs, and clean claims histories are in the best position to negotiate lower rates.

HVAC Contractors

General Liability: $85-$175/month

HVAC contractors face moderate risk in line with electricians and plumbers. The work involves electrical and mechanical systems, creating exposure to electrical hazards, refrigerant handling, gas line connections, and confined spaces like attics and crawl spaces. One factor that sets HVAC apart is the value of equipment. Recovery machines, vacuum pumps, manifold gauges, and diagnostic tools add to inland marine insurance costs. Workers' comp rates are moderate, with common claims involving falls, heat exposure in attics, and back injuries from lifting heavy equipment.

Painters

General Liability: $64.99-$125/month

Painting is one of the lowest-risk construction trades, which translates directly into some of the lowest premiums. Most painting work is performed at ground level or modest heights, involves minimal risk of structural damage, and generates relatively small claims when incidents occur. Workers' compensation rates are moderate, with ladder falls being the most common claim. One exception is lead paint exposure---painters working on pre-1978 homes face lead hazards, and those performing lead abatement pay higher premiums. Exterior painters also face somewhat higher rates than interior-only painters due to increased fall risk.

Landscapers

General Liability: $65-$150/month

Landscaping insurance costs span a wide range because the trade encompasses everything from basic lawn mowing to complex hardscaping, tree removal, and irrigation installation. A solo operator mowing residential lawns pays far less than a company operating heavy equipment and building retaining walls. Commercial auto insurance is particularly important because landscapers drive trucks and trailers loaded with equipment to multiple sites daily. Inland marine coverage is also essential---landscapers carry thousands of dollars in mowers, blowers, and trimmers vulnerable to theft from trucks and trailers.

Concrete and Masonry

General Liability: $100-$200/month

Concrete and masonry work carries medium-high risk due to the heavy materials involved, the use of large equipment like mixers and pump trucks, and the structural nature of the work. A failed foundation or retaining wall can cause significant property damage and create serious liability claims. Workers' compensation rates reflect the physical demands of the trade---back injuries, muscle strains, and injuries from heavy material handling are common. Contractors who operate heavy equipment like concrete pump trucks face additional auto and equipment liability that can push overall insurance costs higher.

Demolition

General Liability: $175-$400/month

Demolition is the most expensive construction trade to insure. Every aspect of the work---tearing down structures, operating heavy machinery, managing debris, and working around unstable buildings---carries extreme risk. The potential for catastrophic worker injury, damage to adjacent properties, and environmental contamination from asbestos drives premiums to the highest levels in the industry. Workers' compensation rates are at or near the maximum for any trade. Most demolition contractors need umbrella policies because claim severity can easily exceed standard limits. Carriers willing to write demolition policies are few, and they require strong safety programs, experienced operators, and clean claims histories.

Flooring Installers

General Liability: $75-$150/month

Flooring installation is a lower-risk trade that benefits from working entirely at ground level inside completed or near-completed structures. The primary liability exposure comes from potential damage to subfloors, existing surfaces, or other finished work. Claims tend to be smaller and less frequent than most other trades. Workers' compensation costs are moderate, with knee injuries being the signature hazard for installers who spend extended periods kneeling. Installers working with adhesives and finishes face some chemical exposure risk, but the trade's overall risk profile is favorable.

Coverage Types Every Trade Needs

Regardless of which trade you work in, the following coverage types form the foundation of a complete construction insurance program.

• General liability is the baseline policy for all construction trades. It covers third-party bodily injury, property damage, and completed operations claims. Every contractor needs this coverage, and most clients, general contractors, and project owners require it before you step foot on a job site.
• Workers' compensation is mandatory in Washington State for all employers. Washington operates a state-managed system through the Department of Labor and Industries (L&I), where premiums are paid quarterly based on hours worked and your trade's risk classification code. Even sole proprietors should consider optional coverage to protect themselves.
• Commercial auto insurance is essential if you drive to job sites, haul materials, or transport equipment. Personal auto policies exclude business use, so any accident during work driving would not be covered without a commercial auto policy.
• Inland marine and tools and equipment coverage protects your tools, machinery, and equipment against theft, damage, and loss---on a job site, in your truck, in transit, or at your shop. Construction tools are frequent theft targets, and replacing them out of pocket can be devastating.
• Umbrella or excess liability is recommended for high-risk trades like roofing, demolition, and general contracting. An umbrella policy provides additional limits above your general liability and auto policies, protecting against catastrophic claims that exceed primary policy limits.

What Drives Your Specific Rate Up or Down?

Even within the same trade, two contractors can pay very different premiums. The following factors determine where you fall within your trade's pricing range.

• Annual revenue and payroll. Higher revenue and payroll mean more business activity and statistically more exposure to claims. A plumbing company with $1 million in annual revenue will pay significantly more than a solo plumber with $150,000 in revenue.
• Number of employees. More employees means more hours worked, more workers' comp exposure, and more people who could be involved in an incident. Premiums scale with headcount across almost every coverage type.
• Claims history over the past three to five years. This is the single most impactful factor in your control. Contractors with zero claims in the lookback period qualify for the best rates. Even one significant claim can increase premiums by 20 to 50 percent for several years.
• Years in business. New contractors pay more due to lack of track record. After three to five years of clean operations, rates typically decrease as insurers gain confidence in your risk profile.
• Safety programs and certifications. Documented safety programs, OSHA compliance records, and industry certifications like OSHA 10 or OSHA 30 signal lower risk to underwriters. Some carriers offer explicit discounts for contractors who maintain formal safety programs.
• Type of work: residential vs. commercial vs. industrial. Residential work generally carries lower rates than commercial work, which in turn carries lower rates than industrial projects. The value of properties, the complexity of projects, and the severity of potential claims all increase as you move from residential to industrial.

How to Lower Construction Insurance Costs

You have more control over your insurance costs than you might think. The following strategies help Washington contractors reduce premiums without sacrificing coverage.

• Maintain a clean claims history. This is the most effective way to keep rates low over time. Invest in safety and risk management to avoid claims in the first place, and think carefully before filing small claims that could be handled out of pocket.
• Implement documented safety programs. Create written safety programs that include hazard assessments, training schedules, equipment inspection logs, and incident reporting. OSHA compliance is not just a legal requirement---it is an insurance cost reducer.
• Ensure accurate job classification. Make sure your business is classified correctly with your insurer and with L&I. If you perform multiple types of work, ensure payroll is allocated to the correct classification codes. Being misclassified in a higher-risk category means overpaying.
• Bundle multiple policies with a single carrier. Purchasing general liability, commercial auto, inland marine, and umbrella coverage through one carrier often qualifies you for multi-policy discounts. Bundling also simplifies administration and prevents gaps between coverages.
• Review coverage annually. Your business changes over time---you may add or drop services, hire or reduce staff, or change your revenue mix. Review coverage annually with your agent to ensure your policies reflect current operations. Do not pay for coverage you no longer need, and do not be underinsured for risks you have added.

Get a Quote for Your Specific Trade

Every trade has different risks, and your insurance should reflect the specific work you do. SmartInsured specializes in construction insurance for Washington State contractors and can build a coverage package tailored to your trade, revenue, and risk profile. General liability starts as low as $64.99 per month for qualifying trades.

• Get a free quote online: Start your quote
• Call us directly: 425-209-1206
• General liability from: $64.99/month

Stop guessing what your insurance should cost. Contact SmartInsured today and get a quote built for your specific trade.