Best Construction Insurance Companies

by Ann deBruyn

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.

The best construction insurance companies offer customizable policies so you can get the right coverage based on your trade, job types and company size. They also provide convenience, with the ability to get quotes and file claims quickly and on your schedule.

What's the best fit for your business?

Answer a few questions and we'll match you with an insurance partner who can help you secure quotes.

Top business insurance providers for construction companies

These insurance providers offer tailored coverage for construction businesses and have strong financial ratings from AM Best, a trusted credit rating agency focused on the insurance industry. Providers that do not have an AM Best rating were not considered for this list.

Erie: Best overall customer satisfaction

Pros:

  • Rated among the top providers for overall customer satisfaction in J.D. Power's 2021 U.S. small commercial insurance study.

  • Superior (A+) rating from AM Best.

  • Agents who speak multiple languages are available.

Cons:

  • Coverage is available in only 12 states and Washington, D.C.

Why we like it: Erie's contractors insurance includes general liability and commercial property insurance, but you can customize your policy with builders risk insurance, tools and equipment coverage, workers' compensation and commercial auto (among other coverage), depending on your insurance needs. Quotes are available through local agents, and nonnative English speakers can search for agents who speak their preferred language. In addition, Erie has an A+ rating from the Better Business Bureau.

The Hartford: Best for construction-industry expertise

Pros:

  • Business owner's policy includes business income insurance.

  • Dedicated underwriters for construction businesses.

  • Risk engineering specialists can help your business minimize losses.

  • Excellent (A-) rating from AM Best.

  • Online quotes are available.

Cons:

  • Below average customer satisfaction rating in J.D. Power's 2021 U.S. small commercial insurance study.

  • Coverage is not available in Alaska, Hawaii or New Jersey.

Why we like it: The Hartford's business owner's policies include business interruption insurance, which helps cover expenses if property damage forces you to halt operations. This is not the standard for all business insurance providers. Furthermore, you can bundle coverage to include workers' compensation, management liability and installation coverage, among other options. You can get a quote online, though all policies are sold through agents.

Nationwide: Best for customized coverage

Pros:

  • Superior (A+) rating from AM Best.

  • Coverage options tailored to the construction industry, as well as risk-management services.

  • Online quotes are available.

Cons:

  • Below average customer satisfaction rating in J.D. Power's 2021 U.S. small commercial insurance study.

Why we like it: Nationwide offers specialized coverage for construction businesses, including inland marine insurance, builder's risk coverage, and surety and fidelity bonds. You can start a quote online, over the phone or work directly with an agent. In addition, Nationwide has an A+ rating from the Better Business Bureau.

Next: Best for online quotes, claims

Pros:

  • Excellent (A-) rating from AM Best.

  • Get a quote and purchase your policy entirely online.

  • Claims are often resolved within 48 hours.

Cons:

  • Newer insurance company (founded in 2016).

  • Some specialty construction coverage is not available.

  • Coverage is not available in New York or Washington, DC.

Why we like it: Next is a relative newcomer in an industry full of established providers. Still, the company has already earned top marks from the Better Business Bureau (A+ rating) and AM Best (A- rating). With Next, you can handle your business insurance entirely online — from quotes to claims — or talk with an agent over the phone. Next offers general and professional liability coverage, workers' compensation, commercial auto, and tools and equipment insurance. However, Next doesn't offer specialty coverage, like builder's risk or pollution liability insurance.

What types of insurance do construction companies need?

Type of insurance

What it pays for

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General liability insurance

Third-party claims of bodily injury or property damage. May be required by your city or state. Clients may also require proof of liability insurance.

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Professional liability insurance

Legal costs related to claims of mistakes or negligence, including breach of contract or missed deadlines.

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Commercial property insurance

The cost to replace structures and physical assets, such as tools or building materials, that are damaged due to fire, vandalism or other covered events. (Note: Can be combined with general liability insurance with a business owner’s policy.)

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Commercial auto insurance

Expenses related to accidents, such as property damage and injuries, when driving a covered vehicle for business purposes.

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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.

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General contractors and construction companies may also need:

  • Builder's risk insurance : Covers building under construction or renovation against damage or loss due to fire, weather, vandalism and other events.

  • Product liability insurance : Covers legal costs, settlements and medical bills resulting from a product's faulty installation or repair.

  • Inland marine insurance : Covers business property while in transit or being stored away from your business.

How much does it cost to insure a construction company?

The overall average monthly cost for a business owner's policy, according to 2020 data from Progressive, is $84, though construction companies might find that their rates vary significantly from this figure. For example, rates for a general contractor will be different from those of a roofer, electrician, plumber or mason.

Other factors that affect the cost of coverage include the size and scope of the projects you work on, where your business operates, how many employees you have and the number of vehicles you need to insure.

Get quotes from multiple insurance providers and compare coverage types and limits to find the best value for your construction business.