Insurance for Construction Companies and Contractors
What kind of work do you do?
Construction employees and contractors at a table reviewing plans.
Choose from the nation's best insurance providers
Logos of Insureon's business insurance carrier partners

Cheap contractor’s insurance

Contractor’s liability insurance may be required to obtain a license, comply with state laws, and qualify for contracts. Liability coverage can also protect your business from expensive lawsuits, allowing you to work with peace of mind.

How do I find cheap contractor’s insurance?

Let’s take a look at four ways contractors can save money on their insurance coverage:

  1. Shop around. Work with an Insureon agent to source quotes from different insurers.
  2. Bundle your policy. Pair your liability policy with property insurance to save money.
  3. Customize your policy. Adjust your coverage limits, deductible, and policy options to save on your premium.
  4. Manage risks. Cut your number of insurance claims and pay less for insurance.

Get affordable construction business insurance today

View video transcript.

You know you need insurance for your small business, but where to start? And how can you keep costs down?

Insureon is here for you. You can get customized quotes from top carriers. Most small businesses start with a general liability policy. You can combine property coverage with your liability insurance at a discount of $57 per month.

Maintaining a safe work environment can help you manage risk and lower your insurance costs too. Get affordable insurance from the best carriers. Start your application now! Insureon. Protection is peace of mind.

1. Shop around and compare quotes from multiple insurance companies

Comparing prices and policies from multiple insurance carriers is one of the first steps to finding affordable contractor’s insurance.

You might contact each insurance company separately, although this task is much easier by working with an online insurance marketplace, like Insureon, where you can compare free insurance quotes from multiple providers in real time.

Choosing a policy with the lowest premium might not be your best option, as each provider could offer policies with different exclusions, deductibles and coverage limits.

How a licensed Insureon agent can help you

With Insureon, you can get free quotes from top-rated insurance companies after filling out our online application, which takes just a few minutes to complete.

If you need help comparing policies and considering your options, our licensed insurance agents are available to help you figure out which types of insurance you need for your business. Once you choose your policies, you can get coverage and a certificate of insurance in less than 24 hours.

How much does contractor insurance cost?

Construction contractor calculating insurance costs.

The cost of contractor insurance depends on several factors, including:

  • The type of construction and contracting services you offer
  • Your property and equipment
  • Your employees, payroll, and revenue
  • The policies you need, such as builder's risk, pollution liability, or a surety bond
  • The coverage limits and deductibles for each policy

2. Bundle your insurance policies together

One easy way to save money on contractor insurance is to combine your general liability insurance and commercial property insurance into one policy, known as a business owner’s policy (BOP). This is usually less expensive than buying your general liability and property coverage separately.

A BOP insures against:

  • Bodily injuries to customers, clients, and other third parties
  • Damage to your own property, or a third party such as a customer
  • Advertising injuries, such as libel or slander

You might also consider bundling other policies as well, such as combining your professional liability insurance and business interruption insurance.

3. Customize your insurance policies

There are a few ways that you can customize your insurance coverage to save money on your contractor insurance. For example, paying your premium on an annual basis, rather than monthly, will likely earn you a discount from your insurance company.

In addition, choosing higher deductibles and lower coverage amounts can also reduce your premiums, although this should be done carefully.

The deductible is the amount of money you would pay out-of-pocket on a claim, before your insurance coverage kicks in. Choosing a high deductible or a low coverage amount can cost you more in the long run if you face some expensive claims.

A liability policy will have a per-occurrence limit and an aggregate limit. A per-occurrence limit is the maximum amount an insurance company will pay on individual claims. The aggregate limit is how much it’ll pay for all claims during a policy period, which is usually one year. Depending on the type of policies you get, your insurance coverage will have set per-occurrence and aggregate limits.

Manage your risks to keep your premiums low

Avoiding claims in the first place not only protects your bottom line, by reducing your out-of-pocket costs, but it can also help keep your premiums low. That requires managing and reducing your risks wherever possible.

Identify potential risks

Before you start a project, it’s a good idea to analyze each aspect of a particular job, the potential hazards involved, and how you’ll avoid or mitigate them. This can save you time and money in the long run, while reducing the chance of an expensive accident.

Hire the right people

Whether it’s an employee or a subcontractor, everyone who works for you should have the licensing required to perform their tasks, and a commitment to perform each job in a safe and quality manner. This can help you avoid bodily injury claims from employers and subcontractors or claims of unsatisfactory work from your customers.

Establish protocols

All of your employees and subcontractors must understand and follow your commitment to safety.

Make sure everyone on a job site has the right skills to do any task they’re assigned to. Establish safety protocols and procedures for each job, according to industry standards and safety laws. Make sure everyone on a job site knows the hazards and risks they’re dealing with.

Have regular updates on safety protocols, and check that everyone who works for you is following them. Inspect each person’s work to make sure it’s being done in accordance with local building codes, and the customer’s expectations.

Use the right materials

Good quality tools and materials not only keep your employees and customers happy, but they can also reduce risks. Make sure your tools are in good working order, and that all deliveries meet your standards for quality.

Document your work

Fully document the materials you use and how each job was performed, in case a customer has any questions or complaints. This can also help in case a local building inspector has questions or concerns about your work.


Open and periodic communications with your customers, employees, and subcontractors can help address minor concerns before they become larger ones or turn into a lawsuit.

Find contractor insurance quotes today

What types of business insurance do contractors need?

Whether you’re a general contractor, carpenter, commercial builder, or independent contractor, you’ll likely need certain construction contractor liability policies to obtain a contractor’s license or building permits, comply with state laws, or to qualify for contracts.

Even when not required, these liability policies can financially insulate your business from expensive lawsuits:

General liability insurance

General liability coverage protects your contracting business from the high cost of lawsuits and helps you qualify for leases and contracts. It covers common business risks such as customer injury, damage to a customer’s property, and advertising injury.

For example, if you’re a handyman who accidentally damages a customer’s house, your general liability policy would cover you.

Commercial property insurance

Commercial property insurance covers the cost of repairing or replacing your business property if it’s lost, stolen, or damaged. It covers your business’s physical location, plus the equipment and materials you keep there. If supplies were stolen or lost in a fire at your plumbing business, for instance, they would be covered by this policy.

Business owner’s policy

A business owner’s policy (BOP) bundles a general liability insurance policy with commercial property insurance. A BOP is typically less expensive than buying each policy separately.

Workers' compensation insurance

Workers’ compensation insurance is required in most states for businesses with one or more employees. It’s also required for sole proprietors in riskier professions, such as roofing. Workers’ comp covers the medical payments and lost wages for work-related injuries and illnesses.

Commercial auto insurance

Commercial auto insurance is required in most states for business-owned vehicles. A commercial auto policy covers your legal bills, medical expenses, and property damage if a business vehicle is involved in an accident. If you have a van or truck for your painting or electrician business, you probably need this coverage.

Contractor's tools and equipment insurance

Contractor's tools and equipment insurance helps pay for the repair or replacement of your tools and equipment if they’re lost, stolen, or damaged. This policy typically applies to equipment that is less than five years old and items that are valued at less than $10,000.

If your appliance repair tools were stolen from your van, for example, your contractor’s tool policy would help offset the loss.

You may also like
Contractors and a businessman review building plans.
The small business owner's guide to contractor liability insurance
While many independent contractors buy insurance for themselves, you may need to provide some types of insurance for the contractors you hire as a way of covering their liabilities and your own.

Professional liability insurance

Professional liability insurance, also called errors and omissions insurance, protects small businesses against the costs of client lawsuits over unsatisfactory work. If a customer accuses you of missing a defect as a home inspector, this policy can help with your cost of a lawsuit and settlement.

Builder's risk insurance

Builder's risk insurance, also known as course of construction insurance, covers structures under construction in case of damage from fire, theft, vandalism, and other risks.

Contractor’s pollution liability insurance

Contractor’s pollution liability (CPL) insurance is a type of environmental insurance for the construction industry that covers pollution liability risks for contractors and their subcontractors. If someone accuses your excavation and grading business of causing.

Surety bonds

Surety bonds act as a contract between a business, a client, and an insurance company. They guarantee the insurer will reimburse the client if the business fails to deliver contracted services.

Commercial umbrella insurance

Commercial umbrella insurance offers additional liability coverage for claims made against your general liability, commercial auto, or employer’s liability insurance.

How to get cheap contractor’s insurance quotes from trusted carriers with Insureon

Complete Insureon’s easy online application today to get free quotes for contractor business insurance policies from top-rated U.S. insurance providers. You can also speak with an agent about the types of small business insurance you need and any discount bundles for general liability and other insurance products.

Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.

Updated: November 3, 2023
Get construction business insurance quotes
Save money by comparing insurance quotes from multiple carriers.
How do I get cheap business insurance?Best options for buying small business insurance in 2024Construction insurance for 3 common contractor claimsWhat is a construction defect and are you liable for it?How a builder’s risk insurance policy can protect your business