Licensing, bonds and compliance
Compliance costs are mostly fixed and mostly small, which is what makes skipping them a bad trade. Here is what the coverage itself costs and how the compliance items fit in.
Roofing, excavation and anything at height price far higher than interior finish work. The single largest factor.
Workers compensation is priced per hundred dollars of payroll, so it scales directly with headcount and wages.
General liability is priced on revenue, so two contractors with the same headcount can pay very different amounts.
Every state has its own rates and rules. Working across a state line means reporting payroll there.
Claims and injuries follow you for years through your experience modification rate.
How much you sub out, and whether those subcontractors genuinely carry their own coverage, changes your exposure materially.
A licence bond costs a small percentage of the bond amount each year. A certificate of insurance costs nothing beyond the policy you already have. Continuing education costs a modest fee. Set against the cost of a suspended licence, an unenforceable contract or a stop work order, the compliance line on your budget is not where the money goes. Contractors who get into trouble almost never do it by spending too little on the bond. They do it by letting a date pass.
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Tell us your trade, payroll and the states you work in. A licensed specialist will come back with real numbers.
