What Insurance Do Contractors Need in the Southeast?

By Winfield Lee | Lee, Hill & Lee Insurance | Updated March 25, 2026

Contractors in the Southeast need at minimum general liability insurance ($2,000-$5,000/year), workers' compensation (required by law in most states), and commercial auto insurance ($1,200-$3,000/vehicle). A fully protected contractor working across Georgia, South Carolina, North Carolina, Florida, or Tennessee should also carry inland marine, umbrella liability, and builder's risk coverage, with total annual premiums typically ranging from $8,000 to $25,000+ depending on trade, payroll, and revenue.

Essential Contractor Insurance Coverages

General Liability Insurance

This is the foundation of every contractor's insurance program. General liability covers third-party bodily injury, property damage, and completed operations claims. If a homeowner trips over your materials or you accidentally damage a client's property, this is what responds.

Workers' Compensation Insurance

Workers' comp covers medical expenses and lost wages when employees are injured on the job. Requirements vary by state across the Southeast:

Cost: Typically $3,000-$15,000+ per year based on payroll and classification code. Roofers and framers pay the highest rates ($8-$25+ per $100 of payroll), while painters and electricians pay less ($3-$8 per $100).

Commercial Auto Insurance

Covers your trucks, vans, and work vehicles. Personal auto policies exclude business use, so this is essential if you drive to jobsites.

Inland Marine / Tools & Equipment

Covers your tools, equipment, and materials in transit or at jobsites. Standard property insurance doesn't cover items away from your premises.

Builder's Risk Insurance

Covers buildings under construction against fire, wind, theft, and vandalism. Typically purchased on a per-project basis.

Umbrella / Excess Liability

Provides additional liability limits above your GL, auto, and workers' comp. With lawsuits getting more expensive, most contractors need at least $1-$2 million in umbrella coverage.

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Contractor Insurance Requirements by Southeast State

If you work across state lines -- and many Southeast contractors do -- you need to understand each state's requirements:

Why Contractors Need an Independent Insurance Agent

Contractor insurance is one of the more complex classes to write. Rates vary dramatically by trade, and many carriers restrict certain classifications (roofing, excavation, tree service). An independent agent like Lee, Hill & Lee Insurance has access to 300+ carriers -- including specialty contractor markets -- to find you the best combination of coverage and price.

We've been insuring Southeast contractors since 1963 and are licensed across Georgia, South Carolina, North Carolina, Florida, and Tennessee. Whether you're a one-man handyman operation or a 50-employee general contractor, we tailor coverage to your specific trade and territory.

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From certificates of insurance for your next bid to a full risk management review, we've got you covered. No pressure, no jargon -- just straight talk from people who understand the trades.

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Frequently Asked Questions

What insurance do contractors need in the Southeast?

At minimum, contractors need general liability, workers' compensation (required by law in most states), and commercial auto insurance. A complete contractor insurance program also includes inland marine for tools and equipment, builder's risk for projects under construction, and umbrella liability for additional protection.

How much does contractor insurance cost?

Total annual costs for a typical contractor range from $8,000 to $25,000+ depending on trade, payroll size, revenue, and coverage needs. General liability alone runs $2,000-$5,000/year, with workers' comp adding $3,000-$15,000+ based on payroll and class code.

Can a subcontractor work without insurance?

While some states don't mandate every coverage type, working without insurance is extremely risky. Most general contractors require subs to carry GL and workers' comp before starting work. Without coverage, you're personally liable for injuries and damages, and you may lose bids to insured competitors.

Do I need workers' comp if I'm a sole proprietor?

It depends on the state. In Florida, even sole proprietor contractors in construction must carry workers' comp or file for an exemption. In Georgia, South Carolina, and North Carolina, sole proprietors without employees are generally exempt but can elect coverage. Many GCs require it regardless of state law.