How much does builder’s risk insurance cost?

The median cost of builder’s risk insurance is $95 per month or $1,140 annually for Insureon small business customers. The median cost offers a more accurate estimate of what your business is likely to pay than the average cost of builder's risk insurance because it excludes outlier high and low premiums.

Many small business owners (38%) pay less than $1,000 per year for builder's risk insurance and 40% pay between $1,000 and $2,000 per year. The cost depends on the project. Policy costs are typically between 1% and 4% of the total completed value of the structure.

Builder’s risk insurance comes with a wide range of coverage limits. If your project involves expensive construction materials or high labor costs, you’ll need to purchase a policy with a higher coverage limit, which will cost more. Many builder’s risk policies have multimillion dollar coverage limits that can, for example, cover $10 million or more of damage per incident.

The median limit for this policy is $460,000, with no deductible.

Builder’s risk policies sometimes provide different coverage limits for different construction classifications. For example, a plan might include a $5 million limit for a frame structure and a $10 million limit for a joisted masonry structure.

Some businesses reduce their monthly or annual builder’s risk insurance costs by purchasing a master policy that provides continuous coverage without an expiration date. These plans are ideal for contractors who handle a continuous stream of projects.

Insurance premiums vary based on the policies a business buys. See our small business insurance cost overview or explore costs for a specific policy.

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