Builders Insurance
Find out what insurance coverage you need as a builder.
Compare policies from leading national insurers. Get a quote in minutes.
Over 1 million customers worldwide.
Buy instantly online.
Written by
Why Do I Need Builders Insurance?
It’s safe to say you know a thing or two about creating something from nothing. You’ve spent years building homes or commercial spaces, and now you’re building a business, too. Everything needs a solid base to sit on if you want it to last for years to come, and for your business, that foundation is business insurance. But what about your insurance?
Below are some of the most common types of insurance policies that builders carry to stay protected.
What Type of Builders Insurance Do I Need?
General Liability
A foundational insurance coverage to help handle costs from third-party accidents, property damage, and bodily injury.
From
$20.75
/month*
Workers’ Comp
Coverage to help take care of employees who get sick or injured on the job. Most states require this coverage for small businesses with full- or part-time employees. It also can benefit business owners who don’t have employees.
From
$38.91
/month*
What Does Builders Insurance Cover?
You have customers to manage, deadlines to meet, and materials to buy. With all of that on your plate, there isn’t much time left to learn the fine details of builders liability insurance. Need a quick lesson on getting business coverage? Here are the basics.
General Liability Insurance
Insurance can be a generalist or a specialist, just like a contractor. General liability insurance, as the name suggests, is a comprehensive insurance plan. This type of builders liability insurance covers bodily injury, property damage, and third-party accidents.
In your case, “third-party” accidents refer to your customers or vendors. You might also want to add contents coverage, which could help you out if your tools or equipment are stolen.
General liability insurance covers a lot of situations because there’s a lot that can happen in a business. The average claim for damage or accidents in small businesses is $30,000, which means that being insured could protect your finances from a big hit.
What does general liability coverage look like for a builder, though? Imagine you’re working on a cabinet install job at a customer’s house. As you’re picking up the cabinet for installation, your hand slips and the cabinet falls to the floor. Unfortunately, the cabinet damages the hardwood floor, and the customer is not happy.
Without insurance, you may have to pay for the damaged floor and cabinet, which would cut into your profit for the project. However, if you have builder insurance, your policy would cover the homeowner’s property damage (up to your limits).
So what does general liability insurance usually cover in your builder business? Here’s a recap:
- Third-party property damage (e.g. customers or vendors)
- Bodily injury
- Medical expenses
- Personal and advertising injury
- And more
General liability insurance usually does not cover:
- Personal property damage
- Professional services
- Employee injury and workers compensation
- Damage to your work
- Motor vehicles during business use
- Intentional injury or damage
- And more
Workers Compensation Insurance
Many hands make for light work, especially on a job site. If you have employees, though, you need additional insurance coverage. In most cases, if you have part-time or full-time employees, you need to carry workers compensation insurance. Workers comp insurance policies cover medical bills, lost wages, and any legal costs associated with an employee who got sick or hurt on the job.
Workplace injury claims cost an average of $41,000. Unfortunately, a construction site is a particularly dangerous place to work. The construction industry accounts for just over half of all fatal worker falls, and one in every ten construction workers is injured annually.
In addition to typically being a legal requirement, having workers comp insurance safeguards your employees and your finances. Workers compensation insurance for builders may cover:
- Death benefits
- Medical payments
- Lost wages
- Rehabilitation expenses
Why Should I Get Builders Liability Insurance?
You never know what’s just around the corner in your business, and builder insurance is there for you in the good and bad times.
No matter how careful and diligent you are, accidents can happen. If you aren’t prepared, any “oops” moment or workplace injury could bankrupt your business and put you back at square one. Luckily, there are ways to prevent worst-case scenarios from bringing your business down. Forty-three percent of small business owners have reported being threatened with or involved in a civil lawsuit, so having business insurance could lessen the financial burden.
How much is builders insurance? It depends on your business details, which means you don’t have to worry about paying premiums way above your needs. Your insurance cost depends on factors such as the types of services you provide, your location, how many employees you have, your annual revenue, and more. You can answer a few questions here to get a tailored estimate.
A small monthly investment into a builders insurance plan could save you tens of thousands of dollars down the line. The average costs small business owners are exposed to without insurance include:
- $30,000 for property damage or accident claims
- $39,000 for work injury claims
- $50,000 for reputational harm claims (e.g., slander or libel)
- $20,000 for a customer slip-and-fall case
Having insurance also can help your business grow. When you buy insurance through Simply Business, you’ll get a certificate of insurance (COI). Having a certificate could help you:
- What Types of Builders Insurance Do I Need?
- Rent out a room or space for your business
- Convince other people to work with you
- Earn customers’ confidence
- Open another location
- And more!
Answers to More Builder Insurance Coverage Questions
State governments determine their business insurance requirements, so your required coverages will depend on where you live. Even in states where builder insurance isn’t required, it is highly recommended. Workers compensation is almost always required if you have employees.
Small business owners like you can usually deduct the cost of insurance premiums when they file their taxes. It’s always a good practice to check with a local accountant for more information, though.
Each business is unique, even if they’re in the same industry. Your builder insurance policy is customized, as it should be. The level of coverage you need depends on the services you provide, whether or not you have employees, annual revenue, your location, and more.
Our simple quote process lets you determine the right amount of business insurance coverage for you. Plus, we have licensed insurance agents to answer all your questions.
Having your business information nearby makes the insurance quote process faster. Here’s what you’ll need to get started:
- Annual revenue estimates
- Payroll estimates (if you have employees)
- Information on any previous claims
Your insurance requirements are based, in part, on what state you live in. It’s possible that your state could require you to carry policies if you want to:
- Have employees
- Rent out office space
- And more
A comprehensive insurance policy can usually cover:
- Bodily injury
- Accidents and damages
- Employee injuries
- Unintentional mistakes
- And more
If you work alone, you won’t need a workers compensation policy.
The cost of builder insurance varies between businesses, which prevents you from paying for a policy that’s too large or too small. Your monthly premium depends on the following:
- Payroll estimates
- Your location or the location of your business
- The specific building services you offer
- And more
Want to see how much your insurance policy may cost, without commitments or confusion?
When you fill out our quote form, you can see policy prices from the country’s most trusted insurance providers in just 10 minutes or less.
Our licensed insurance agents can help you find coverage to fit all of the services you offer.
Why Builders Choose Simply Business
Small business insurance is what we do. Whether it’s covering you for accidents and errors, meeting workers’ comp requirements, or financially protecting your business from the unexpected, we can help find the coverage you need for your business.
Start your quote
Answer a few questions about
your business in one form.
Review quotes
Compare quotes side by side from top-rated insurers and customize your coverage.
Get protected in minutes
Choose your policy, and get instant proof of insurance – all online, and all within 10 minutes.
Written by
Our +1 million customers are big fans. And you will be too.
I went online, looked around, and found Simply Business. The process was so seamless. I got my certificate within minutes. It was just phenomenal.
Karen
Owner of Tangaza Bath & Body Studio LLC
With Simply Business I know I can look at different carriers, but also see all my stuff in the same place… a lot of [insurance] providers don’t offer a variety of coverage, all in one place.
Jef
Owner of Bunker83 LLC
It wasn’t overwhelming to figure out what was covered and what wasn’t covered. And the cost was competitive.
Kim
Owner of Room to Breathe Professional Organizing
Feel confident in your choice.
We partner with a range of top-rated carriers and use smart technology to match you with policies that fit your specific business, your risks, and budget.
400+
business types covered
4.2/5
Trustpilot rating
1M+
customers worldwide
18
top-rated carriers
We’ve Got More Helpful Information
9-minute read
A General Liability Insurance Guide for Small Business
4-minute read
The Basics of Workers’ Comp
*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.
Page last updated: