Why do commercial builders need business insurance?
Every construction project has its risks. Commercial builders insurance helps cover costs when a worker gets hurt in an accident, or a thief makes off with valuable equipment. Some policies may be required to comply with state laws or client contracts.
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With Insureon, commercial builders can get business insurance coverage the same day they apply for quotes.
Fill out our easy online application to compare quotes from top-rated providers.
What types of business insurance do commercial builders need?
These policies cover common risks in the commercial construction industry.
General liability insurance
A general liability policy covers basic third-party risks, such as a property owner who sues over accidental damage to a fence. Bundle it with commercial property insurance for savings in a business owner’s policy.
- Customer bodily injuries
- Customer property damage
- Product liability insurance
Business owner's policy
A business owner's policy, or BOP, bundles general liability coverage and commercial property insurance at a discount. It protects against common lawsuits and property damage.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Workers’ compensation insurance
Most states require workers’ comp for commercial building companies that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Work-related injuries
- Disability benefits
- Lawsuits from employee injuries
Commercial auto insurance
This type of coverage pays for financial losses in an accident involving your construction business’s truck or other vehicle. Each state has its own laws for auto liability coverage.
- Property damage caused by your vehicle
- Medical payments from an accident
- Vehicle vandalism and theft
Contractor’s tools and equipment insurance
This insurance policy provides financial reimbursement if a commercial builder's tools are stolen from a construction site or damaged. It's also called inland marine insurance.
- Hand tools and power tools
- Cranes, excavators, and other equipment
- Personal protective equipment (PPE)
Professional liability insurance
Professional liability insurance covers legal costs when a commercial builder is sued for a mistake or oversight that causes financial harm. It's also called errors and omissions insurance (E&O).
- Accusations of negligence
- Undelivered services
- Faulty construction
How much does commercial builder business insurance cost?
A commercial builder who works independently can expect to pay less for insurance than a larger business.
Average commercial builder insurance costs include:
- General liability: $89 per month
- Tools and equipment: $42 per month
- Workers' comp: $175 per month
Factors that affect premiums include:
- Services offered, such as residential homes, framing, or debris removal
- Business property and equipment
- Types of business insurance coverage
- Coverage options, such as limits and deductibles
- Additional insured endorsements
- Additional coverage, such as builder’s risk insurance or surety bonds
How do I get commercial builder's insurance?
It’s easy to get business insurance for commercial builders and general contractors if you have your business information on hand. Our insurance application will ask for basic facts about your construction company, such as revenue and the number of employees. You can buy policies online and get a certificate of insurance (COI) with Insureon in three easy steps:
- Complete a free online application
- Compare insurance quotes and choose policies
- Pay for your policy and download a certificate
Insureon's licensed insurance agents work with top-rated U.S. providers to find the most affordable commercial construction insurance for your business, whether you work independently or hire employees.
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