Best Business Insurance for Construction Professions in 2024 (Top 10 Companies)
Travelers, Liberty Mutual, and Nationwide are the top picks best business insurance for construction professions, with rates starts at $320/month. These industry leaders offer comprehensive coverage tailored for construction professions, ensuring your business is protected against potential risks and liabilities.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences in ...
Commercial Lines Coverage Specialist
UPDATED: Oct 22, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Oct 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Travelers, Liberty Mutual, and Nationwide emerge as the top contenders for the best business insurance for construction professions, offering competitive pricing and tailored protection.
With comprehensive policies designed to mitigate risks and safeguard against potential liabilities, construction businesses can trust these companies to provide the security they need to thrive in their industry.
Our Top 10 Company Picks: Best Business Insurance for Construction Professions
| Company | Rank | Multi-Policy Discount | Safety Features Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 10% | 8% | Customizable Coverage | Travelers |
 | #2 | 12% | 10% | Comprehensive Policies | Liberty Mutual |
 | #3 | 15% | 5% | Industry Experience | Nationwide |
 | #4 | 10% | 7% | Specialized Expertise | Hiscox |
 | #5 | 12% | 6% | Competitive Rates | Progressive |
 | #6 | 10% | 9% | High-Value Coverage | Chubb |
 | #7 | 12% | 8% | Enhanced Protection | Allstate |
 | #8 | 10% | 7% | Risk Management | CNA |
 | #9 | 15% | 6% | Local Presence | State Farm |
 | #10 | 12% | 9% | Industry Reputation | The Hartford |
From safeguarding against potential construction errors that could derail projects to effectively managing various risks inherent in the industry, contractors can depend on these companies to provide comprehensive insurance packages.
No matter how much coverage you need, you can find the lowest rates by entering your ZIP code into our free comparison tool above.
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#1 – Travelers: Top Overall Pick
Pros
- Customizable Coverage: Travelers stands out for offering highly customizable coverage options, allowing businesses to tailor policies to their specific needs.
- Multi-Policy Discounts: Travelers insurance review & ratings highlight the incentive of a 10% discount to encourage clients to combine policies, offering the opportunity for significant savings on comprehensive coverage.
- Safety Features Discount: Clients benefit from an 8% discount, promoting safety measures and lowering insurance costs for businesses with robust safety protocols.
Cons
- Average Monthly Rate: While offering customizable coverage, Travelers’ average monthly rates might be relatively higher compared to some competitors.
- Limited Industry-Specific Discounts: The company could enhance its attractiveness by introducing more industry-specific discounts to better cater to the needs of construction professionals.
#2 – Liberty Mutual: Best for Coverage Solutions
Pros
- Comprehensive Policies: Liberty Mutual insurance review & ratings showcase the company’s strength lies in providing thorough policies, guaranteeing businesses receive comprehensive coverage across diverse risk factors.
- Multi-Policy Discounts: With a 12% discount, Liberty Mutual incentivizes customers to bundle multiple policies, promoting cost-effective solutions.
- Safety Features Discount: Liberty Mutual offers a significant 10% safety features discount, encouraging businesses to prioritize safety and reduce insurance costs.
Cons
- Potentially Higher Rates: Despite competitive rates, Liberty Mutual’s rates might still be higher compared to some other options.
- Limited Specialized Expertise: While offering comprehensive policies, Liberty Mutual may lack some of the specialized expertise that certain businesses may require.
#3 – Nationwide: Best for Driven Assurance
Pros
- Industry Experience: Nationwide insurance review & ratings highlight the wealth of industry expertise, assuring clients that seasoned professionals manage their insurance requirements with adeptness.
- Multi-Policy Discounts: Nationwide offers a substantial 15% discount for multi-policy bundles, encouraging businesses to consolidate their insurance needs for cost savings.
- Competitive Rates: The company provides competitive rates, making it an appealing option for businesses seeking affordable coverage without compromising on quality.
Cons
- Limited Customization: While competitive, Nationwide may offer less customization in coverage compared to some other providers.
- Discount Balance: The discount balance, especially in the safety features category, might be perceived as less favorable compared to companies with higher discounts.
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#4 – Hiscox: Best for Niche Expertise
Pros
- Specialized Expertise: Hiscox stands out with its focus on specialized expertise, catering to the unique needs of construction professionals with industry-specific knowledge.
- Multi-Policy Discounts: Offering a 10% discount, Hiscox encourages clients to bundle policies, providing potential cost savings for comprehensive coverage.
- Safety Features Discount: With a 7% safety features discount, Hiscox promotes safety measures, helping businesses lower insurance costs while benefiting from tailored expertise. To broaden your understanding, explore our comprehensive titled “Car Driving Safety Guide for Teens and Parents.”
Cons
- Limited Discount Percentage: While providing valuable expertise, Hiscox’s discount percentages may be perceived as slightly lower compared to some competitors.
- Potentially Higher Rates: Hiscox’s average monthly rates might be relatively higher, and businesses may need to balance the cost with the specialized knowledge offered.
#5 – Progressive: Best for Competitive Rates
Pros
- Competitive Rates: Progressive excels in offering competitive rates, providing businesses with an affordable insurance option without compromising coverage quality.
- Multi-Policy Discounts: With a 12% discount, Progressive encourages bundling policies, making it an attractive choice for businesses seeking comprehensive coverage at a lower cost.
- Flexibility in Options: Progressive insurance review & ratings highlight the company’s capacity for customizable coverage, enabling businesses to fine-tune their insurance policies according to their individual requirements.
Cons
- Limited Safety Features Discount: The 6% safety features discount may be perceived as relatively lower, especially for businesses prioritizing safety measures.
- Less Specialized Expertise: Progressive may lack some of the specialized expertise that businesses with specific industry requirements may seek.
#6 – Chubb: Best for High-Value Shield
Pros
- High-Value Coverage: Chubb distinguishes itself by providing high-value coverage, suitable for businesses with extensive assets and complex insurance needs.
- Multi-Policy Discounts: Offering a 10% discount, Chubb encourages clients to bundle policies, providing potential cost savings for comprehensive, high-value coverage.
- Risk Management: Chubb insurance review & ratings highlight companies dedication to risk management, rendering it an excellent option for enterprises in search of robust approaches to minimize potential risks.
Cons
- Higher Premiums: Chubb’s focus on high-value coverage may result in higher premiums, potentially making it less accessible for smaller businesses with budget constraints.
- Discount Balance: While offering high-value coverage, the balance of discounts may be perceived as less favorable compared to some competitors.
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#7 – Allstate: Best for Enhanced Safeguarding
Pros
- Enhanced Protection: Allstate emphasizes enhanced protection, making it a suitable choice for businesses seeking comprehensive coverage for various risks.
- Multi-Policy Discounts: Allstate insurance review & ratings highlight Allstate’s promotion of bundling policies with a 12% discount, fostering savings opportunities and comprehensive coverage options for customers.
- Safety Features Discount: The 8% safety features discount promotes safety measures, reducing insurance costs for businesses prioritizing safety.
Cons
- Potentially Higher Rates: Allstate’s average monthly rates might be relatively higher, and businesses may need to assess the cost-benefit of enhanced protection.
- Limited Industry-Specific Discounts: Allstate may benefit from introducing more industry-specific discounts to cater better to the needs of construction professionals.
#8 – CNA: Best for Managing Risk
Pros
- Risk Management: CNA excels in risk management, making it an ideal choice for businesses seeking comprehensive strategies to identify and mitigate potential risks.
- Multi-Policy Discounts: CNA insurance review & ratings highlight CNA’s promotion of policy bundling with a 10% discount, aiming to attract clients with the opportunity for reduced costs while ensuring comprehensive risk management coverage.
- Safety Features Discount: With a 7% safety features discount, CNA promotes safety measures, reducing insurance costs for businesses prioritizing risk management.
Cons
- Higher Premiums: CNA’s focus on risk management may result in higher premiums, potentially making it less accessible for smaller businesses with budget constraints.
- Limited Specialized Expertise: While offering robust risk management, CNA’s specialized expertise may not be as tailored to the specific needs of certain construction professionals.
#9 – State Farm: Best for Localized Assurance
Pros
- Local Presence: State Farm insurance review & ratings highlight the company’s emphasis on personalized service, leveraging its extensive local network to cater to the distinct requirements of businesses across various locations.
- Multi-Policy Discounts: Offering a substantial 15% discount for multi-policy bundles, State Farm promotes cost-effective solutions for comprehensive coverage.
- Competitive Rates: State Farm provides competitive rates, making it an appealing option for businesses seeking affordable coverage without compromising on quality.
Cons
- Discount Balance: While offering a significant multi-policy discount, State Farm’s balance of discounts may be perceived as less favorable compared to some competitors.
- Limited Specialized Expertise: State Farm’s focus on local presence may result in less specialized expertise for businesses with industry-specific requirements.
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#10 – The Hartford: Best for Industry Fortitude
Pros
- Industry Reputation: The Hartford is recognized for its strong industry reputation, instilling confidence in clients with its track record of reliability and trustworthiness.
- High-Value Coverage: With a focus on high-value coverage, The Hartford caters to businesses with extensive assets and complex insurance needs.
- Multi-Policy Discounts: The Hartford insurance review & ratings highlight incentive of a 12% discount to prompt customers to combine policies, potentially reducing expenses while ensuring broad protection.
Cons
- Higher Premiums: The Hartford’s emphasis on high-value coverage may result in higher premiums, potentially making it less accessible for smaller businesses.
- Limited Customization: While offering high-value coverage, The Hartford’s customization options may be perceived as less flexible compared to some competitors.
Essential Insights for Construction Professionals Liability (CPL) Insurance
Contractors professional liability insurance, often abbreviated as CPL insurance, serves as a tailored and indispensable safeguard for contractors and building professionals operating within the multifaceted realm of the construction industry.
- Complex Construction Process: Designing and constructing a building involves multiple parties, such as architects, designers, engineers, contractors, and other specialists. CPL insurance recognizes the complexities and potential risks associated with these collaborative projects. Check out our ranking of the top providers: Best Business Insurance for Civil Engineers
- Coverage for Construction Errors: CPL insurance provides coverage for construction errors that may occur during the building process. This includes mistakes made by contractors themselves as well as errors made by third-party hires, such as architects or engineers.
- Risk Mitigation for Contractors: By having CPL insurance, contractors can mitigate the financial risks associated with construction errors. It offers protection against potential legal claims, costly repairs, and other damages that may arise due to errors or omissions.
- Tailored Policies: CPL insurance policies can be customized to suit the specific needs of contractors. They can opt for a standing policy that covers all their work or choose project-specific coverage for finite time frames.
- Exclusions and Inclusions: Policies may have specific lists of activities covered or excluded from coverage. It’s important for contractors to carefully review these details to ensure they have adequate protection for their specific projects.
- Complementary to General Liability Insurance: CPL insurance complements general liability insurance by providing additional coverage for professional liability, which may not be included in standard general liability policies.
Contractors and building professionals can safeguard their businesses and navigate the complexities of the construction industry more effectively by gaining a comprehensive understanding of the critical elements of CPL (Contractor’s Pollution Liability) insurance.
Jeff Root Licensed Life Insurance Agent
By recognizing the nuances of CPL insurance, including coverage limits, exclusions, and policy terms, they can implement strategic risk mitigation measures and ensure that their projects proceed smoothly while mitigating environmental liabilities.
Synergy between Contractors and Third-Party Hires in Construction Projects
Contractors often rely on third-party hires to handle various aspects of a construction project. These third-party hires can include architects, designers, engineers, and subcontractors with specialized skills.
- Third-Party Hires Bring Specific Expertise: Contractors hire architects to design the structure, engineers to evaluate its structural integrity, and designers to create functional and aesthetically pleasing spaces.
- Subcontractors Offer Specialized Skills: Contractors may engage subcontractors for plumbing, electrical work, drywalling, and other specialized tasks that require specific expertise. Take a look at our list of the leading providers: Best Health Insurance For Plumbers
- Collaborative Effort: The successful completion of a construction project requires close collaboration and coordination between contractors and third-party hires.
- Mitigating Risks: Contractors professional liability insurance provides protection not only for the contractor but also for the third-party hires, ensuring that potential errors or mistakes made by either party are covered.
- Comprehensive Coverage: CPL insurance offers a safety net for all parties involved, minimizing financial risks and potential disputes arising from errors or negligence during the construction process.
By involving a diverse range of professionals, contractors can enhance the quality and efficiency of their projects while relying on CPL insurance to manage associated risks effectively.
Business Insurance for Construction Professions: Monthly Rates by Coverage Level & Provider
Company Insurance Minimum Coverage Full Coverage
Allstate $360 $720
Chubb $400 $800
CNA $384 $768
Hiscox $320 $640
Liberty Mutual $376 $752
Nationwide $368 $736
Progressive $336 $672
State Farm $344 $688
The Hartford $392 $784
Travelers $360 $720
This shows the outlines monthly rates for construction business insurance, covering both minimum and full coverage options from various providers. Rates range from $320 to $800 monthly, with companies including Allstate, Chubb, CNA, Hiscox, Liberty Mutual, Nationwide, Progressive, State Farm, The Hartford, and Travelers.
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Understanding the Scope of Coverage: What does CPL insurance protect?
Contractors professional liability (CPL) insurance offers comprehensive coverage for a range of risks and liabilities that contractors may face during construction projects. The specific coverage may vary depending on the policy and the contractor’s needs.
- Design Errors: Mistakes or flaws in the design phase of a project that lead to construction issues or defects.
- Construction Defects: Faulty workmanship, materials, or installation that result in structural problems or performance failures.
- Professional Negligence: Failure to meet professional standards, provide accurate advice, or exercise due diligence in the contractor’s services.
- Errors in Project Management: Inadequate planning, scheduling, coordination, or supervision that leads to delays, cost overruns, or project disruptions.
- Bodily Injury or Property Damage: Accidents or damages that occur on the construction site and result in injuries or property loss. To gain in-depth knowledge, consult our comprehensive resource titled “Personal Injury Protection (PIP) Insurance: A Complete Guide.”
- Legal Defense Costs: Coverage for legal fees and expenses incurred in defending against claims or lawsuits related to the covered risks.
By investing the time to thoroughly assess your CPL insurance policy, you can make informed decisions that fortify your business against potential risks and ensure that you have adequate protection in place.
Business Insurance for Construction Professions: Monthly Rates by Age & Gender
Insurance Company 25-Year-Old Female 25-Year-Old Male 30-Year-Old Female 30-Year-Old Male 45-Year-Old Female 45-Year-Old Male
Allstate $144 $180 $132 $168 $120 $156
Chubb $156 $192 $144 $180 $132 $168
CNA $150 $186 $138 $174 $126 $162
Hiscox $132 $168 $120 $156 $108 $144
Liberty Mutual $162 $198 $150 $186 $138 $174
Nationwide $142 $178 $130 $166 $118 $154
Progressive $138 $174 $126 $162 $114 $150
State Farm $146 $182 $134 $170 $122 $158
The Hartford $154 $190 $142 $178 $130 $166
Travelers $148 $184 $136 $172 $124 $160
It includes premiums for 25-year-old and 30-year-old females and males, as well as 45-year-old females and males, ranging from $108 to $198 for females and $144 to $190 for males, with providers such as Allstate, Chubb, CNA, Hiscox, Liberty Mutual, Nationwide, Progressive, State Farm, The Hartford, and Travelers.
Comparing CPL Insurance and Builders Risk Coverage for Construction Professionals
Contractors professional liability (CPL) insurance and builders risk coverage are two types of insurance policies that are relevant to the construction industry. While they share some similarities, there are key differences between the two:
- Contractors Professional Liability (CPL) Insurance: CPL insurance shields contractors and building professionals from errors, negligence, and associated legal costs, covering design flaws, construction defects, and bodily injury. Contractors procure CPL insurance to mitigate their risks in the construction sector.
- Builders Risk Coverage: Construction project insurance safeguards owners/investors from theft, fire, and natural disasters for assets like buildings and equipment but generally excludes professional liabilities. Typically procured by owners/investors for tailored protection.
CPL insurance focuses on protecting contractors and professionals from professional liabilities, while builders risk coverage primarily safeguards the physical assets of a construction project.
This proactive approach ensures that they are equipped with the right insurance solutions tailored to their unique circumstances, mitigating financial risks and providing peace of mind throughout the project lifecycle.
Case Studies: The Role of Insurance in Construction Professions
Through insightful case studies, we explore how insurance coverage protects against various risks and liabilities inherent in the construction industry, offering valuable lessons and insights for industry stakeholders.
- Case Study #1 – Architectural Firm: Amid a high-rise project, an architectural firm uncovers a critical design error, potentially risking structural stability. Their Contractors Professional Liability (CPL) insurance covers the error, allowing swift rectification and shielding against legal expenses, ensuring project continuity.
- Case Study #2 – Property Developer: In the midst of a residential construction project, a severe fire erupts, damaging the building and materials. Thankfully, Builders Risk Coverage insurance steps in, covering repair costs for the structure, materials, and equipment, ensuring financial protection for the developer.
- Case Study #3 – General Contractor: In this scenario, CPL insurance covers rectifying subcontractor errors, while Builders Risk Coverage ensures financial protection from damages, illustrating the value of comprehensive insurance for construction projects.
These case studies underscore the critical importance of insurance in construction professions, highlighting its ability to provide financial security, mitigate liabilities, and foster confidence in navigating the complexities of the industry. Explore our list of the leading providers: Best Life Insurance Policies for Construction Workers
Laura Walker Former Licensed Agent
By understanding real-world examples of insurance in action, professionals can make informed decisions to safeguard their projects, assets, and livelihoods, ultimately contributing to the sustainable growth and success of the construction sector.
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Recap: The Crucial Role of Insurance for Construction Professionals
Insurance is vital for shielding contractors and building pros from risks. CPL and Builders Risk coverage offer financial protection and peace of mind by covering errors, negligence, and asset damages during construction. For detailed information, refer to our comprehensive report titled “Builders Insurance Group Insurance Review & Ratings.”
This coverage safeguards the project’s value, ensuring continuity despite unforeseen events. Understanding CPL insurance and Builders Risk coverage enables informed decisions, offering confidence and financial protection for construction professionals, fostering project success and resilience.
Understanding how insurance works can feel complicated, but finding affordable rates doesn’t have to be. Enter your ZIP code below for the best insurance rates possible.
Frequently Asked Questions
What is premium insurance?
An insurance premium is the amount you pay each month (or each year) to keep your insurance policy active. Your premium amount is determined by many factors, including risk, coverage amount and more – depending on the type of insurance you have.
What does builders risk insurance cover in Florida?
Builder’s Risk Insurance typically covers damages like fire, theft, and weather-related incidents but doesn’t cover damages from defective workmanship or negligence. Factors like project type, location, construction methods, expected completion date, and amount of coverage influence the cost of this insurance.
Compare insurance rates today by entering your ZIP code into our free comparison tool below.
What are the 3 most important insurance?
There are many types of insurance available, but there are some which top the charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.
To gain profound insights, consult our extensive guide titled “What is disability?“
What is operations liability insurance?
Completed operations insurance covers a contractor’s liability for property damage or injuries to a third party once contracted operations cease. Construction products and the manufacturing of consumer goods and medicines will usually carry completed operations insurance.
What falls under product liability?
Products liability refers to the liability of any or all parties along the chain of manufacture of any product for damage caused by that product.
What insurance is most important for a business?
General liability insurance, also known as business or commercial liability insurance, is essential coverage for various claims, including bodily injury, property damage, personal or advertising injury, medical payments, products-completed operations, and damages to premises rented to you.
To enhance your understanding, explore our comprehensive resource on business insurance titled “Commercial Insurance: A Complete Guide.”
What are all risks insurance?
An all risks insurance contract covers the insured from all perils, except the ones specifically excluded from the list. Contrary to a named perils contract, an all risks policy does not name the risks covered, but instead, names the risks not covered.
Do contractors need insurance in Florida?
Florida requires its contractors to carry workers’ compensation, public liability insurance, and property damage liability insurance. You’ll need to provide a COI when applying for licensing.
What does general insurance cover?
General insurance covers home, your travel, vehicle, and health (non-life assets) from fire, floods, accidents, man-made disasters, and theft. Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.
For a comprehensive overview, explore our detailed resource titled “Car Insurance: A Complete Guide.”
Who offers the cheapest general liability insurance?
Next offers the cheapest general liability insurance nationwide, offering affordable policies for sole proprietors and LLCs alike, along with a quick quote process. With Next, sole proprietors pay an average of $25 per month, while LLCs pay an average of $29 per month for general liability insurance.
Enter your ZIP code below to get personalized insurance quotes tailored to your needs and budget.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences in ...
Commercial Lines Coverage Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.