Construction Business Insurance

Here are some of the top factors that determine insurance costs for construction companies during the underwriting process:

• Industry risks. A construction business that takes on large commercial projects will pay more for insurance than one that does small residential projects.
• Business property and equipment. It costs more to insure an office or other property than basic tools and equipment used in your work.
• Number of workers. Companies with more employees and subcontractors face a bigger risk of workplace accidents and errors, which raises the cost of workers' comp, general liability, and similar policies.
• Annual revenue. Businesses that earn more revenue are associated with larger projects, higher risks, and more frequent claims, which results in higher premiums.
• Coverage limits and deductibles. Policies with higher limits cost more but cover more expensive claims. Choosing a higher deductible can lower your premium, but your insurance won't activate until you pay the full amount.
• Claims history. A construction business that has filed an insurance claim in the past may see an increase in its insurance rates.
• Business location. Crime rates, population density, healthcare costs, property values, flood zones, and other regional factors affect how much you pay for insurance.
• Workplace safety. Insurance companies may offer lower rates to business owners who implement safety and security measures, such as fencing and video surveillance at a construction site.

Depending on the work you do, you may need additional types of construction insurance. Other policies commonly purchased by construction businesses include:

• Employment practices liability insurance (EPLI) covers claims of wrongful termination, discrimination, and other violations of employee rights.
• Builder's risk insurance provides coverage for structures under construction and materials at a construction site. It's also called course of construction insurance.
• Contractors pollution liability insurance (CPL) covers legal costs related to harm caused by pollution at a construction site. You may also see it referred to as environmental insurance.
• Commercial property insurance covers your business’s physical location and business personal property (BPP) kept at that location, such as computers and other equipment. You can bundle this coverage with general liability insurance in a business owner's policy at a discount, or add a BPP endorsement to your general liability policy if you don't have an office.
• Installation floater insurance is a type of inland marine insurance that covers materials being installed or assembled during a construction project.
• Commercial umbrella insurance boosts the coverage on your general liability, commercial auto, and employer's liability insurance once the policy limit is reached.
• Mobile equipment endorsements can be added to commercial auto insurance to cover forklifts, tractors, and other machinery driven on public roads.
• Per-project aggregate endorsements can be added to general liability policies to give each active jobsite its own separate aggregate limit, rather than sharing one limit across all of your projects. This prevents a major claim at one jobsite from reducing coverage needed at another.

Owners of construction businesses can save money on insurance by comparing quotes from different providers. With Insureon, you can get free quotes from top-rated insurance companies by filling out our easy online application.

Other ways to save money include:

• Bundle policies. Construction companies can often bundle commercial property coverage with different types of liability coverage, such as general liability or EPLI, in a business owner's policy. This is typically less expensive than buying the policies separately.
• Customize your coverage. Choose lower limits or a higher deductible to reduce your premium, but make sure your policy can still cover a potential claim and that you can easily afford the deductible.
• Avoid accidents and claims. Contractors can prevent employee injuries and customer accidents that lead to claims by implementing a strong risk management strategy that includes employee training and strict enforcement of safety protocols.

Our licensed agents can help you find the right construction insurance for your budget and your unique needs, whether your focus is home improvement or large-scale commercial projects.