Construction & Contractors Insurance

Industry overview

Construction and contracting businesses build, renovate, and repair on sites they do not own, often alongside other trades and the public. The work is physical and hazardous, and a mistake can damage a client's property or injure someone nearby.

Contractors also face heavy contractual demands: owners and general contractors dictate insurance, indemnity, and bonding terms before work begins. Insurance for the sector commonly coordinates liability, workers coverage, equipment protection, and surety to satisfy both the work and the contract.

Common business types

General contractors and builders
Electrical, plumbing, and HVAC trades
Roofing and exterior contractors
Concrete and masonry firms
Excavation and site-work contractors
Remodeling and finishing trades

Common risks

Job-site injuries

Heights, equipment, and active sites create serious injury exposure for workers and others.

Property damage

Work can damage a client's existing structure or neighboring property.

Completed-operations claims

Defects in finished work can lead to claims after a project ends.

Equipment and tool loss

Valuable tools and equipment move between sites and can be stolen or damaged.

Contractual and bonding demands

Owners and GCs commonly require specific insurance and surety bonds.

Subcontractor exposure

Relying on subcontractors creates additional liability and certificate-tracking needs.

Common insurance requirements

Construction contracts are highly prescriptive, commonly requiring general liability with completed-operations coverage, specified limits, additional-insured and waiver-of-subrogation endorsements, workers compensation, and frequently surety bonds for public or large projects. Builders risk is often required during active construction.

Recommended coverages

Contractual Coverage

How much does it cost?

There is no single price for construction & contractors insurance — the total depends on which of these coverages you carry and the specifics of your business. As a rough guide, here are general national averages for the coverages this industry commonly needs.

General Liability Insurance

$500–$1,500 per year for many small businesses
Workers Compensation Insurance

$500–$3,000 per year, driven largely by payroll and job class codes
Inland Marine Insurance

$300–$1,000 per year for many small businesses
Builders Risk Insurance

1%–4% of construction cost for the project term
Surety Bonds

1%–3% of the bond amount per year for many qualified businesses

These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.

Get your real price Cost guidance last reviewed June 2026

Hypothetical claim examples

Damage to existing structure

A contractor accidentally damages a client's existing structure during work. General liability may help respond to the property-damage claim, subject to policy terms.

Tools stolen from site

Tools are stolen from a job-site trailer. Inland marine coverage may help replace them, subject to deductibles.

Fire during construction

A fire damages a project mid-construction. Builders risk may help with repairs and covered materials, subject to terms.

Frequently asked questions

What is completed-operations coverage?

Completed-operations coverage, within general liability, helps respond to claims arising from your finished work after a project is done.

Who buys builders risk on a project?

Depending on the contract, the owner, general contractor, or developer arranges builders risk. Lenders frequently require it on financed projects.

Why do projects require surety bonds?

Owners, especially public agencies, require bid, performance, and payment bonds to guarantee that the work will be completed and subcontractors paid.

How do subcontractors affect a contractor's coverage?

Using subcontractors adds exposure, so contractors commonly require subs to carry coverage and provide certificates and additional-insured status.

Are tools covered when stored at a job site?

Tools and equipment away from a fixed location are commonly covered under inland marine rather than standard property coverage.

How do I get a quote for my business?

Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help with coverage tailored to your specific business type.

All Construction & Contractors business types

Get covered for any of the 188 business types in this industry.