Commercial Builders Insurance
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How much does insurance cost for commercial builders?

Commercial builder insurance rates depend on the type of insurance, policy limits, deductibles, and factors such as your business's location and number of employees. Save money on business insurance by comparing quotes from different providers with Insureon.

Top commercial builder insurance policies and their cost

Here are the top commercial builder business insurance policies and their average costs:

Our figures are sourced from the median cost of policies for commercial builders who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.

General liability insurance icon

General liability insurance

Construction businesses and contractors pay an average of $80 per month, or $960 per year, for general liability insurance. Some commercial builders need proof of insurance for this policy to sign a commercial lease or a client contract.

A general liability policy can pay for medical expenses from third-party injuries, such as a visitor at a construction site who trips over a board and breaks a leg. It covers costs if someone sues your business over a bodily injury, property damage, or advertising injury.

This is the average policy for contractors who buy from Insureon:

Premium: $80 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The cost of a general liability insurance policy depends on factors such as the coverage limits you choose, the type of business, and any subcontractors or additional insured endorsements. A higher deductible can also help you save money on your policy. Learn more about how your premium is calculated.

Business owner’s policy icon

Business owner's policy

Construction businesses and contractors pay an average of $98 per month for a business owner's policy, or $1,173 annually. Only small, low-risk businesses are eligible for a BOP.

A BOP is an insurance package that bundles two important types of coverage at a discount. It includes general liability coverage to protect against common lawsuits, and commercial property insurance to cover vandalism, theft, and property damage.

This is the average business owner's policy for a construction contractor who buys from Insureon:

Premium: $98 per month
Policy limits: $1 million per occurrence; $2 million aggregate

When you buy a BOP or commercial property policy, you can choose between insuring your items for the actual cash value (the item's current value) or the replacement value (the cost of a brand-new replacement), with the first option costing less.

Other factors that influence the cost of a business owner's policy include the size of your business, the amount of foot traffic, the value of your business property, and other coverage options, such as business interruption insurance.

Workers’ compensation insurance icon

Workers’ compensation insurance

Construction businesses and contractors pay an average of $254 per month for workers’ compensation insurance, or $3,054 annually. Most states require this coverage for businesses that have employees, and some require it for sole proprietors in high-risk professions, such as roofing.

Workers' comp helps pay for medical costs from work-related injuries and illnesses. Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.

The cost of a workers' compensation policy depends on factors such as the number of employees and the type of work they do. Learn more about how workers' comp insurance premiums are calculated.

Commercial auto insurance icon

Commercial auto insurance

Construction businesses and contractors pay an average of $173 per month, or $2,075 per year, for commercial auto insurance. Most states require this coverage for vehicles owned by a construction company.

Commercial auto insurance covers financial losses in the event of an accident involving your business vehicle. It can help pay for property damage, medical bills, and legal costs. When buying a policy, you'll need to make sure your coverage limits match the requirements in your state.

Personal auto insurance won’t cover work-related driving outside of your commute, which is why you might need this type of policy. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on your coverage needs, the value of the vehicle, and your insurance claims history. Learn how insurers calculate your premium.

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Contractor’s tools and equipment coverage icon

Contractor’s tools and equipment insurance

Construction businesses and contractors pay an average of $14 per month for contractor’s tools and equipment insurance, or $169 annually.

A form of inland marine insurance, this policy covers your property whether it’s in your office, in transit, or at a job site. It can pay for lost, stolen, or damaged tools and equipment valued at $10,000 or less.

The cost of contractor's tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Professional liability insurance icon

Professional liability insurance

Construction businesses and contractors pay an average of $74 per month, or $886 per year, for professional liability insurance. Commercial builders can sometimes bundle this coverage with general liability insurance, at a combined average price of $112 monthly.

Professional liability insurance covers legal fees related to professional negligence, such as failure to adhere to a blueprint. It's sometimes called errors and omissions insurance or E&O insurance.

This is the average coverage and pricing for contractors who buy from Insureon:

Premium: $74 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,250

The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and the commercial building services you offer. Find out how insurers set professional liability premiums.

Umbrella / excess liability insurance icon

Commercial umbrella insurance

Construction businesses and contractors pay an average of $81 per month, or $977 annually, for commercial umbrella insurance, which you can buy to boost the limits of your underlying general liability, commercial auto, or employer's liability insurance.

Umbrella insurance provides an additional safeguard and helps commercial builders meet contractual demands for higher limits. When the underlying policy reaches its limit, commercial umbrella insurance activates to cover any costs over that limit, up to the limit of your umbrella policy.

The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.

Builder’s risk insurance icon

Builder's risk insurance

Construction contractors pay an average of $105 per month, or $1,259 annually, for builder's risk insurance. This policy is sometimes called course of construction insurance.

Builder's risk insurance provides coverage for structures under construction. It will help pay for fires, vandalism, and other types of damage.

The cost of builder's risk insurance depends on the value of the structure, including materials and labor.

Surety bond icon

Surety bonds

Construction contractors and businesses pay an average of $8 per month, or $100 per year, for a surety bond.

A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement. You may need a surety bond to get a contractor's license for certain types of work.

The cost of a surety bond primarily depends on the size of the bond.

How do I get commercial builder insurance?

Insureon can help you find affordable commercial builder insurance coverage in three easy steps:

  1. Fill out a free online application with details about your business.
  2. Compare custom quotes from top-rated U.S. insurance providers.
  3. Select a policy and pay the premium to begin coverage.

You can consult a licensed insurance agent for questions about your risks and state insurance requirements. Once you've bought a policy, you can download a certificate of insurance for proof of coverage. Most small business owners can get insured within 24 hours of applying for quotes.

Updated: September 27, 2023
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