Construction Insurance Companies
Construction insurance is a line of policies designed to protect both employees and customers against damage during construction projects. Part of this insurance is required by law and part by the construction contract.
Even when it’s not necessary, it’s a great idea for contractors and others who work on construction projects to get some level of insurance coverage.
Construction Insurance Companies
If you own a home, home insurance protects you against catastrophic events like fires and unforeseen accidents like a neighbor getting injured on your sidewalk.
Just as a homeowner needs protection from home-related losses, it’s essential that independent contractors and other business owners protect themselves against the unexpected by builders risk insurance companies.
Independent contractors should consider purchasing their own general liability insurance and perhaps additional coverage specific to their industry.
We’ve looked at over three dozen construction insurance companies based on coverage options, price, customer service, and more to help independent contractors find the best coverage for them.
What Type Of Insurance Do Construction Companies Need?
|Types Of Insurance||What Does It Pay|
|Professional liability insurance||Legal costs are related to claims for error or negligence, including breach of contract or failure to meet a deadline.|
|General liability insurance||Third-Party Claims for Personal Injury or Property Damage. May be required by your city or state. Customers can also request proof of liability insurance.|
|Commercial property insurance||The cost of replacing buildings and property such as tools or building materials damaged by fire, vandalism, or other covered events. (Note: Can be combined with business liability insurance.)|
|Commercial auto insurance||Accident-related costs such as B. Property damage and personal injury if you are driving an insured vehicle for business purposes.|
|Workers’ compensation||Medical bills for employees and/or contractors who suffer a work-related illness or injury. Required in most states if you have at least one employee.|
Importance of Construction Insurance
As discussed above, construction involves the use of heavy equipment, materials, manpower, etc. and is more prone to accidents. Since the company is liable for any accident at the construction site, it is the business owner or the contractor who should pay the cost of medical treatment for the injured or compensation to the families in the event of the worker’s death.
The material costs associated with construction are very high. Any damage to the structure or materials will result in huge financial losses. If you are insured under construction insurance, you can apply for financial support from construction insurance companies.
The buyers of the apartments or the built land have all rights to sue the construction company in case of defective construction. In such cases, the construction company has to pay for the conversion or repair of the construction site. Construction insurance protects builders from these claims by providing financial support.
Apart from the circumstances mentioned above, construction insurance offers broad coverage and provides security for the company in case of unforeseen events.
Four Main Areas Of Coverage
Construction insurance is very important in terms of coverage. It is very comprehensive and specifically designed to cover every aspect of the construction process to make the business process flexible. Construction insurance covers four major areas of business insurance. They are:
Public Liability Insurance
Business liability insurance is general insurance that any business that involves interaction with customers or people, in general, must have.
Business liability insurance as part of construction insurance helps companies if employees or tools used in construction cause damage to third-party property or people.
Employers Liability Insurance
Because the construction industry involves many risks, any worker can be injured or die at any time due to faulty equipment or negligence of supervisors or employees. Employers are responsible for the health and safety of their workers on site.
In addition, employees have every right to sue the owner and claim damages. In such unexpected events, the employer or the property owner can benefit from the builder’s liability insurance as the insurance company will cover the medical expenses or the indemnifications associated with the claims.
Comprehensive Insurance for Contractors
The contractor all-risks insurance is tailored to construction companies. It provides assistance for contract work on new homes, theft of materials or tools, damage to materials or tools due to unexpected events, the sudden interruption of work in progress on new homes, owned or rented facilities, etc.
This insurance acts as a perfect help for the most common accidents in the building process.
Personal Accident Insurance
This insurance is specifically designed for managers, sole proprietors or business partners. This is useful in those cases when the injured person cannot blame another person for the harm done to him. This is helpful to provide support during the time the injured person is unable to generate income.
Top 5 Providers Of Insurance for Construction Companies
The best 5 construction insurance companies are:
- Best overall: The Hartford
- Ideal for new businesses: Hiscox
- Best for Quick Liability Coverage: Next Insurance
- Ideal for professional services: Travelers
- Ideal for industries at risk: Nationwide
The Hartford Home Insurance
Hartford is headquartered in Connecticut and has over 200 years of insurance experience. In the 1980s, they were one of the first construction insurance companies to offer an insurance center for small businesses.
Currently, they insure over a million small business owners. With an AM Best financial strength rating of A + (Superior) and some of the highest customer satisfaction ratings on many of their lines of insurance, Hartford has a long history of being a strong insurer in the United States.
Hartford can provide independent contractor insurance and business policy owner coverage to many types of independent professionals. Here are some examples :
- Plumbers, carpenters, electricians, painters, and repair contractors
- Freelance Editors and Editors
- Graphic designers
- Trade fair professionals
- Horse or dog trainers
|Quick online quotes are available||Cannot buy policy online – must speak to an agent|
|4.8 out of 5 stars for the claims experience in over 16,000 customer reviews|
|Full range of insurance coverages for small businesses|
Why We Chose It: Hartford gets our top pick for Best Overall Independent Contractor Insurance because of the range of professions they cover, ease of online submission, comprehensive coverage options, and long history as experts in small business insurance.
Hiscox Home Insurance
Hiscox is a specialty corporate insurer with operations around the world, serving clients since 1901. They have an AM Best rating of A (Excellent) and have insurance available in 49 states.
Hiscox has several resources for small business owners on their website, including Insured Small Business Owner Spotlight, podcasts, and an entrepreneur community newsletter.
They provide all types of business insurance for independent contractors, which you can get by calling one of their agents. Same-day coverage may be available which is very convenient.
Hiscox can insure over 180 different professions, including architects, beauty, contractors, IT professionals, landscapers, fitness, therapy, home health services, and more.
They offer insurance policies for business owners, general liability, professional liability, cybersecurity, short-term liability, workers’ compensation, umbrella, directors and officers, commercial property, and employment practices liability.
They also sell tailor-made coverage options like business disruptions, depending on your business needs.
|Customized industrial packages for construction professionals||No online complaint tracking|
|Short-term liability policies available||Not available in Alaska|
|Online quote and instant coverage|
Why We Chose It: Hiscox is our best choice for new businesses because they offer industry-specific quality coverage for the most reasonable prices available. This is perfect for those who are just starting out and starting a business with limited budgets.
Next Insurance is a relatively one of new construction insurance company that started as an agency and converted to an insurer in 2018. It is backed by Munich R.E., which has been awarded an A + (superior) rating from AM Best. Next aims to provide easy-to-understand and affordable insurance coverage for small businesses online.
They are available in 50 states and insure 100,000 business owners, serving over 1,000 types of businesses. Policies are issued 100% online, which means you can get a quote and policy right away, as well as manage and print insurance certificates.
The types of policies offered by Next Insurance include General Liability, Professional Liability, and Commercial Automobile.
|100% online with instant policy issuance||No business owner policy|
|Possibility of adding additional insureds||Coverage availability may vary by state|
|4.7 out of 5 stars based on customer ratings on their website|
Why We Chose It: Next Insurance is our top pick for the best independent contractor insurance for quick liability coverage because they insure so many different professions, they make the process easier, and you can get a quote and a policy online. just a few minutes.
Travelers have been around for over 160 years. They offer several small business insurance packages for all types of professionals and are available nationwide.
Some of the types of businesses they insure include financial services, health and wellness professionals, personal care services, pet care services, and technology services. Travelers have an AM Best financial strength rating of A ++ (superior).
Travelers offer business owner insurance (BOP) policies, commercial liability insurance, commercial property insurance, cyber liability, professional liability, business income, and additional expense coverage, as well as ” Owner’s Liability and Contractor Liability Insurance (OCP) for coverage of up to $ 10 million.
OCP is a specialized option that can be issued as a short-term policy to protect the hiring contractor from being held liable for damages caused by a subcontractor. If you have employees, they also offer workers’ compensation coverage.
|Ensures a wide range of professionals||You must contact an agent for a quote|
|Coverage of accounts receivable and billable hours|
|Owners and Contractors Liability (OCP) available|
Why We Chose It: Travelers are well equipped to provide a full range of professionals, from pet services to lawyers, which aren’t always covered by the other insurers we looked for. The Professional Services Premier package is specially designed to help service providers get the best protection at the best price.
Nationwide was founded in 1926 and is headquartered in Columbus, Ohio. Nationwide won # 1 for customer satisfaction in the 2019 JD Power Small Business Commercial Insurance Study but dropped to second from the bottom of the 2020 rankings. And they have a strong financial stability rating by AM Best of A + (Superior). Their insurance products are available nationwide.
Nationwide sells General Liability, Umbrella, Employment Practices Liability, Crime Insurance, Cyber Liability, Errors and Omissions (Professional Liability), Builder’s Risk, Accounts Receivable, Business Owner, Commercial Property, and Income insurance. the company, workers’ compensation, and equipment breakage.
They also sell Domestic Navy (insurance that protects goods and inventory in transit), artwork, computer hardware, and data coverage.
|Construction and health sector coverage||Coverage details are not available online|
|Equipment failure is included in the BOP|
|Free resources and tools to help you grow your business|
Why We Picked It: We picked Nationwide as the best insurer for the risk industries because they understand the needs of these businesses and develop custom packages in several areas including construction and healthcare which tend to have higher incidences of complaints.
What Are The Expected Costs of Insurance For Independent Contractors?
Based on our research, we’ve found policy costs as low as $30 per month (for liability only). It is possible to pay over $100 per month depending on the type of liability you might incur.
Whether you include business property coverage, and whether you are in a higher-risk industry, such as construction or the medical field. The cost of insurance for small businesses takes into consideration:
- Whether you have employees or not
- If you have any products or samples
- The replacement value of your commercial property
- How long have you been in business
- Coverage options you select, including limits and deductibles
- Trade area
- The condition of the building in which you work
As your coverage limits increase, premiums will also increase. Prices also vary based on condition, business income, business ownership, industry, and claims history.
Construction Insurance Companies Compare Rates Quotes and Save Money Up To $500.