Construction Insurance: Best Companies, Costs and Coverage
General and professional liability insurance are a must. But construction companies may also need specialized coverage, like builder’s risk.
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Updated · 6 min read
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Construction professionals face various risks, from on-the-job injuries and equipment theft to timeline delays and customer lawsuits. Business insurance helps shield your company from the financial impact if something goes wrong on the job or at your shop.
Construction businesses need at least two types of insurance.
- General liability insurance. This covers lawsuits and costs if your job activities cause property damage or injuries to non-employees.
- Professional liability coverage. This pays out if you’re sued due to delays, negligence or mistakes.
But almost all construction businesses need more protection than that. Here are some of the best options for coverage, as well as other policies you might need to cover your construction business.
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Top business insurance providers for construction companies
NerdWallet’s editorial team chooses the best business insurance companies based on many factors. For construction businesses, we focused on:
- The relative number of complaints to state insurance regulators a company gets.
- How financially strong insurance companies are, indicating their ability to pay claims.
- How easy it is to get a quote and buy a policy online.
- Whether they have policies specific to construction businesses.
Here are some of our top companies that serve construction businesses. We recommend getting multiple quotes to find the best coverage at the best price.
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Erie
J.D. Power rated Erie as the top provider for overall customer satisfaction in its 2025 U.S. Small Commercial Insurance Study. Erie offers contractors insurance in 12 states and Washington, D.C. That package includes general liability and commercial property coverage. But you can customize your policy with builders risk insurance, tools and equipment coverage, workers' compensation and commercial auto (among other coverage).
Quotes are available through independent local agents. Nonnative English speakers can search for agents who speak their preferred language.
The Hartford
The Hartford stands out for knowing the construction industry. It has policies designed for both small and large construction businesses, plus risk engineering specialists to minimize losses down the line. The Hartford's business owner's policies include business interruption insurance, which helps cover expenses if property damage forces you to halt operations.
The company has relatively few complaints to state regulators about its commercial liability and commercial property coverage. Its parent company has an “excellent” financial rating from AM Best, a credit rating firm. You may be able to get a quote online but will have to complete the purchase with an agent who can help you tailor the coverage further.
Chubb
Chubb stands out for having construction industry expertise. It tailors policy options for construction businesses of all sizes, plus offers risk engineering and consulting services.
The carrier offers business owners’ policies online if your revenue is less than $2 million annually. Larger construction companies may be interested in options like surety bonds and umbrella coverage. Chubb gets relatively few complaints to state regulators regarding its business insurance, and the company is financially strong, meaning it has a good ability to pay claims.
Ergo Next
Ergo Next can provide your business insurance entirely online — from quotes to claims. You can also talk with an agent over the phone.
Ergo Next offers general and professional liability coverage, workers' compensation, commercial auto, and tools and equipment insurance. However, it doesn't offer specialty coverage, like builder's risk or pollution liability insurance.
Save up to 30% on business insurance
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What types of insurance do construction companies need?
Construction companies need coverage against common risks, like mistakes you make or loss of income, as well as those specific to their industry, such as:
- Damage to a building under construction due to theft or vandalism.
- Project delays or overruns that result in a lawsuit.
- Accidents or mistakes that result in damage to a customer’s property.
- Stolen or damaged tools and equipment.
- Employee injuries that occur on the job.
Needs vary by business. However, there are certain policies that are a must for most construction businesses.
General liability insurance
We recommend all businesses have general liability insurance, which covers third-party claims — meaning those from non-employees — against your business. General liability insurance covers the costs of bodily injury, property damage, personal injury (libel or slander) and advertising injury (copyright infringement). It also covers court fees and lawsuit costs for any of these claims.
For example, say a client accidentally trips on your tools while visiting your worksite. General liability insurance would cover the costs of their injuries, plus any costs from a lawsuit if they sued you.
Professional liability insurance
This coverage pays for lawsuits stemming from negligence, mistakes, inaccuracies or delays. Professional liability insurance is also referred to as errors and omissions insurance.
For example, say you mistakenly forget to price out and order the insulation for a construction project. This both increases the cost of the project and delays groundbreaking for your client. They make a claim against your professional liability insurance or sue you, which the coverage would pay for.
Workers’ compensation insurance
Injuries are a big risk at construction sites. Workers’ compensation covers medical and rehabilitation costs for employees who are injured or become ill on the job.
For example, say an employee breaks an ankle when they fall off a ladder. Workers’ comp will pay their medical expenses and any physical therapy costs related to the event.
Most states require this coverage if you have employees. A client contract may also — even for sole proprietors. Health insurance doesn’t cover as many costs and may reject job-site claims, so consider workers’ comp even if you’re a solo contractor.
Other types of coverage you might need
The following types of coverage are common for construction businesses. Your exact needs will vary depending on your trade and business size, among other factors. Consider how accidents, lawsuits and natural disasters could impact your business to guide your choices.
| Type of insurance | What it pays for |
|---|---|
| Vehicles used for work purposes. Coverage typically includes liability, physical damage, medical payments and uninsured motorists, but can be tailored to your needs. | |
| Business property, like tools and equipment, and job materials that you store off-site or transport one location to another. Tools and equipment coverage is similar, but doesn’t cover materials. | |
| Buildings under construction that suffer property damage due to theft, vandalism, explosions or natural disasters. This coverage is also referred to as course of construction insurance. | |
| Lost income, as well as payroll, loan payments and other expenses should your business be unable to operate due to a major disaster. | |
| Damage to your business property, such as an office or warehouse space, due to fire, vandalism and other events. Typically covers the property itself, as well as any equipment or assets. | |
| Provide a guarantee that you will complete the project you were hired for. Not all business insurance providers offer surety bonds. | |
| Combines general liability coverage, commercial property insurance and (typically) business interruption insurance . |
How much does it cost to insure a construction company?
Construction insurance prices depend on the size and scope of the projects you work on and where you operate. For larger construction businesses, how many employees you have and the amount of property you need to insure also come into play.
Insurance costs for smaller construction companies
If you own a construction company that makes less than $10 million in annual revenue, check out these median annual insurance rates provided to NerdWallet by online brokerage Coverdash.
| Business type | General liability cost (median) | Workers' compensation cost (median) |
|---|---|---|
| Remodeling and home renovation | $1,400 | $3,200 |
| Plumbing (residential) | $2,200 | $4,800 |
| Automotive engine repair | $2,200 | $3,500 |
| Janitorial services | $750 | $2,500 |
| Landscaping services | $1,400 | $4,000 |
If you just need a BOP, we have some sample rates for that, too. Business owners’ policies for automotive repair and plumbing businesses have typical annual costs of $4,200 and $4,500, respectively.
Insurance costs for larger construction companies
Construction companies with higher revenue tend to have a lot more risks to insure against and thus higher insurance costs. These median annual rates provided to Nerdwallet by online brokerage Coverdash can give you an idea of costs.
| Business type | General liability cost (median) | Workers' compensation cost (median) | Builder's risk cost (median) |
|---|---|---|---|
| Roofing contractors (commercial / large residential) | $18,000 | $12,000–$20,000 | $4,000 |
| Aqueduct and water infrastructure construction | $15,000 | $12,000 | $6,000 |
| Underground tank removal (non-hazardous) | $16,000 | $8,000 | $4,000 |
| Pipe, duct and boiler insulation | $12,500 | $10,000 | — |
| Access flooring installation | $11,000 | $6,000 | — |
| Driveway paving and sealing | $8,000 | $7,000 | — |
| Drywall contractors (large operations) | $7,500 | $10,000 | — |
| Glass and glazing (curtain wall installation) | $11,000 | $9,000 | $5,000 |
| Terrazzo and tile refinishing | $8,000 | $6,500 | — |
| Fire sprinkler system installation | $12,000 | $8,000 | $4,000 |
| Commercial renovation contractors (large projects) | $10,000 | $12,000 | $4,000 |
| Structural steel erection | $15,000 | $20,000 | $6,000 |
| Heavy civil construction (bridges, tunnels) | $25,000 | $22,000 | $6,000 |
| Site preparation (large excavation projects) | $12,000 | $10,000 | $5,000 |
| Demolition contractors | $14,000 | $16,000 | $6,000 |
| Power and communication line construction | $16,000 | $18,000 | $5,000 |
How to shop for construction business coverage
Prices can vary widely from one insurer to the next, even for the same coverage. Get multiple quotes from a variety of business insurance providers to ensure your construction company gets the best value.
Consider the following factors when comparing policies:
- Policy coverage: What is and isn't covered by the policy? Note any differences between providers and policies to better compare them.
- Liability limits: What is the maximum dollar amount the policy will pay out? Some policies have two limits: per occurrence and aggregate over the life of the policy.
- Price: What is your annual premium? Can you pay it monthly? And what is your deductible if you need to make a claim? Coverage limits and deductibles affect the price of the policy, so try your best to compare apples to apples.
- Reviews: Read customer and independent reviews. Investigate how many complaints have been filed against each company and the nature of those complaints using sites like the Better Business Bureau and the National Association of Insurance Commissioners.
Nerdy tip: If you act as a subcontractor, check if there are fees for adding additional insureds with each company, and how easy it is. The company you subcontract for may ask you to add them as an additional insured, which extends your coverage to them. Some insurers charge a fee for this, but others don’t.
There are three main ways to shop for business insurance: contact providers directly, use an insurance broker or try an online marketplace. Each has its pros and cons. If your construction company needs more than the basics, we’d recommend talking to an insurance agent (even if you buy online).
Contact individual providers
You can buy a construction business insurance policy or contractor insurance policy directly from an insurance provider, either online or over the phone.
Some providers, like Progressive and Geico, use a third-party insurer for certain types of coverage. So while you may be able to purchase your policies from a single provider (and get a bundling discount), you may deal with two separate insurers for claims.
Pros
You decide which providers to reach out to for quotes.
You can get a quote and purchase a policy rather quickly.
Cons
Getting multiple quotes will be time-consuming.
You may not get the support of an unbiased broker or agent to help determine coverage needs and limits.
Even after you buy a policy, you may receive sales calls from the other carriers you got quotes with.
Use an insurance broker
Brokers act as middlemen, doing the legwork for you by gathering quotes from multiple insurance providers. They work to understand your business needs and can offer guidance on the types of coverage you need, which is especially helpful for new business owners.
Pros
A broker can help you figure out your coverage needs.
You deal with one person, rather than calling around to multiple insurance companies.
Cons
They often work on commission and may try to upsell you.
Brokers are under no obligation to find you the lowest rates.
Some brokers charge fees.
Try an online marketplace
Websites like Coverdash and Simply Business are the online version of your traditional insurance broker. You answer questions about your business — like industry, trade, revenue and number of employees — and receive multiple quotes and coverage recommendations in minutes. The main difference: You don’t need to talk to an agent, though you can call to speak with one if you have questions.
Pros
Typically free to use.
Option to talk to an insurance expert if you need assistance.
Cons
You get quotes only from insurance providers within the marketplace network.
Everything after the quote, including claims and customer service, is handled by the insurer, not the marketplace.
How to get your certificate of insurance
Once you have coverage in place, you’ll likely be provided with a certificate of insurance. This proves your construction business has insurance. Many clients will ask for this before initiating a contract, so it’s good to have copies on hand.
You can get new copies of your COI by contacting your agent or insurance company. Many provide them online.
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