Nationwide earned our top spot for the best small business insurer for construction companies due to its competitive customer service ratings and comprehensive coverage. However, we recommend comparing quotes from our other top picks, including Hiscox, The Hartford and Thimble.
Best Construction Business Insurance
Updated: July 9, 2025
Advertising & Editorial Disclosure
Key Takeaways
Nationwide is the best business insurance company for construction firms because it offers the highest overall score combining affordability and customer service.
Hiscox offers the cheapest commercial insurance for general liability and BOP coverage costs.
To shop for business insurance for your construction business, assess the risks in your industry, consult agents and other similar organizations and compare multiple options.
Best Business Insurance for Construction Companies
| Nationwide | 93 | 93 | 91 |
| Hiscox | 92 | 98 | 87 |
| The Hartford | 91 | 90 | 91 |
| Thimble | 89 | 95 | 81 |
| Simply Business | 88 | 87 | 83 |
| NEXT Insurance | 87 | 80 | 94 |
| biBERK | 87 | 85 | 91 |
| Chubb | 87 | 84 | 87 |
| Progressive Commercial | 86 | 88 | 81 |
| Coverdash | 85 | 80 | 83 |
*All scores were based on a construction business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. Nationwide
pros
Great customer service experience
Reasonable rates for most coverage types
Large coverage selection
cons
Need an agent to purchase a policy
High costs for workers comp
COMPANY HIGHLIGHTS
Nationwide tops our list for construction firms, offering a strong balance of affordability and customer service overall. It offers the third most affordable rates for BOP and general liability insurance, at $117 and $78 per month, respectively. It's also tied for the second best customer service score in our analysis, with great customer reviews and a strong financial stability.
2. Hiscox
pros
Wide range of coverage types
Best rates for general liability and BOP insurance
Good financial stability ratings
cons
Mixed customer service ratings
Not all coverages available online
COMPANY HIGHLIGHTS
Hiscox earned second place in our construction business insurance rankings with the lowest rates, offering the cheapest overall rates and the lowest costs for both general liability and BOP insurance. This makes it appealing for construction companies operating on tight margins who need comprehensive coverage without breaking their budgets.
Hiscox maintains strong financial stability with an A (Excellent) rating from AM Best, so construction businesses can count on reliable claims processing.
3. The Hartford
pros
Lowest professional liability insurance rates
Extensive experience with over 200 years in the industry
Highest financial stability ratings
cons
Less affordable for workers' comp policies
COMPANY HIGHLIGHTS
The Hartford earned our third-best spot for construction business insurance. The company offers the most affordable professional liability policies with an average monthly rate of $115 for construction firms, helping to combat high risks.
The Hartford also tied for second overall for customer experience, earning high ratings from over 10,000 customers across various industries and coverage types. Claims are extremely unlikely to go unpaid with an A+ from AM Best for financial stability, which is the best in our study.
Cheapest Business Insurance for Construction Firms
Based on our study of business insurance pricing, Hiscox offers the cheapest overall commercial insurance for construction companies across most policy types. These rates apply to construction companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Construction Companies
With an average monthly rate of $21, Hiscox offers the lowest-cost general liability insurance for construction companies. Also consider quotes from the next-cheapest options: Thimble and Nationwide.
| Hiscox | $21 | $247 |
| Thimble | $67 | $800 |
| Nationwide | $78 | $934 |
| The Hartford | $141 | $1,690 |
| Progressive Commercial | $155 | $1,858 |
| Simply Business | $165 | $1,983 |
| Chubb | $185 | $2,224 |
| biBERK | $204 | $2,451 |
| Coverdash | $267 | $3,207 |
| NEXT Insurance | $296 | $3,552 |
Cheapest Workers' Comp Insurance for Construction Companies
For construction businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $77 per month or $929 yearly.
You may also find competitive rates with Progressive Commercial, Hiscox, Simply Business, and The Hartford.
| Thimble | $77 | $929 |
| Progressive Commercial | $83 | $1,002 |
| Hiscox | $86 | $1,038 |
| Simply Business | $86 | $1,035 |
| The Hartford | $88 | $1,053 |
| Coverdash | $89 | $1,062 |
| NEXT Insurance | $90 | $1,082 |
| biBERK | $91 | $1,094 |
| Nationwide | $97 | $1,166 |
| Chubb | $104 | $1,251 |
Cheapest Professional Liability Insurance for Construction Companies
The Hartford offers the most affordable professional liability insurance options for construction companies, with low average monthly rates of $115. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial, and Thimble.
| The Hartford | $115 | $1,386 |
| NEXT Insurance | $120 | $1,439 |
| Progressive Commercial | $123 | $1,473 |
| Hiscox | $127 | $1,519 |
| Thimble | $127 | $1,529 |
| Simply Business | $128 | $1,534 |
| Coverdash | $131 | $1,566 |
| biBERK | $133 | $1,596 |
| Nationwide | $138 | $1,657 |
| Chubb | $150 | $1,801 |
Cheapest BOP Insurance for Construction Companies
Hiscox provides the most affordable BOP coverage for construction companies, with an average yearly cost of $370 for bundled general liability and property protection. That's a savings of roughly $869 annually compared to Thimble, the second most affordable option.
| Hiscox | $31 | $370 |
| Thimble | $103 | $1,239 |
| Nationwide | $117 | $1,405 |
| The Hartford | $179 | $2,149 |
| Progressive Commercial | $234 | $2,805 |
| Simply Business | $249 | $2,985 |
| biBERK | $266 | $3,190 |
| Chubb | $281 | $3,368 |
| Coverdash | $387 | $4,644 |
| NEXT Insurance | $429 | $5,147 |
What Type of Coverage Do You Need for a Construction Business?
By law, most businesses need workers' comp insurance if they have employees and commercial auto insurance for any business vehicles. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED CONSTRUCTION BUSINESS COVERAGE
Construction companies should carry general liability insurance because it covers common risks like bodily injury, property damage and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. It’s particularly helpful for construction businesses with commercial contracts or high-risk jobs, like technical, legal, or customized services.
Coverage Recommendations by Construction Company Type
We've broken down risk considerations and coverage recommendations by construction business type, ordered from highest to lowest risk for claims frequency. This list helps businesses understand their insurance needs and choose appropriate coverage to protect against potential liabilities.
Cleaning Company Type | Coverage Types Recommendation | Most Common Insurance Claims | Most Common Reasons For Litigation |
|---|---|---|---|
Roofing Companies | General Liability, Workers' Comp (high limits), Commercial Auto, Tools & Equipment, Completed Operations, Professional Liability, Contractor's Pollution Liability, Umbrella Policy ($5M+) | Falls from heights (severe/fatal), ladder accidents, heat-related injuries, nail gun injuries, back injuries from lifting materials, roofing material fires, weather-related accidents | Wrongful death suits from falls, completed operations claims from roof leaks, property damage from falling debris, worker injury lawsuits, slip/fall accidents on steep roofs, roofing defect litigation |
Engineering Companies | Professional Liability (high limits), General Liability, Commercial Property, Workers' Comp, Cyber Liability, Commercial Auto, Errors & Omissions, Environmental Liability, Umbrella Policy ($10M+) | Design errors causing structural failures, missed project deadlines, professional negligence claims, cyber breaches of project data, environmental compliance violations, cost overrun disputes | Structural failure lawsuits from design errors, professional malpractice claims, environmental violation penalties, project delay damages, cyber breach litigation, regulatory compliance violations |
Excavation Companies | General Liability, Workers' Comp (high limits), Commercial Auto, Tools & Equipment, Underground Utilities Coverage, Environmental Liability, Contractor's Pollution Liability, Umbrella Policy ($10M+) | Equipment accidents with heavy machinery, utility line strikes, cave-ins and trench collapses, environmental contamination discoveries, back injuries from manual labor, equipment theft | Wrongful death from trench collapses, utility damage lawsuits, environmental contamination claims, neighboring property damage, equipment accident injury suits, OSHA violation penalties |
General Contractors | General Liability, Workers' Comp, Commercial Auto, Tools & Equipment, Completed Operations, Professional Liability, Builder's Risk, Subcontractor Default Insurance, Umbrella Policy ($5M+) | Workplace accidents from multiple trades, construction defects, subcontractor injuries, property damage during construction, equipment theft, weather damage to projects | Construction defect class actions, workplace injury and wrongful death suits, completed operations claims, subcontractor injury lawsuits, property damage litigation, project delay disputes |
Electrical Contractors | General Liability, Workers' Comp (high limits), Commercial Auto, Tools & Equipment, Completed Operations, Professional Liability, Contractor's Pollution Liability, Umbrella Policy ($3M+) | Electrical shock injuries, burns from arc flash incidents, fires from faulty wiring, falls from heights while installing, equipment electrocution, code violation discoveries | Wrongful death from electrocution, electrical fire damage lawsuits, completed operations claims from faulty wiring, workplace injury suits, code violation penalties, property damage from electrical failures |
Plumbing Contractors | General Liability, Workers' Comp, Commercial Auto, Tools & Equipment, Completed Operations, Water Damage Coverage, Professional Liability, Umbrella Policy ($3M+) | Water damage from pipe breaks, back injuries from lifting fixtures, burns from hot pipes, slip/fall accidents in wet conditions, chemical exposure from drain cleaners, equipment failures | Water damage property claims, completed operations suits from pipe failures, workplace injury lawsuits, chemical exposure claims, slip/fall customer injury suits, property damage from flooding |
HVAC Contractors | General Liability, Workers' Comp, Commercial Auto, Tools & Equipment, Completed Operations, Professional Liability, Refrigerant Liability, Environmental Liability, Umbrella Policy ($3M+) | Falls from heights during installations, refrigerant exposure injuries, equipment malfunctions, back injuries from heavy unit installations, electrical injuries, carbon monoxide incidents | Wrongful death from carbon monoxide, completed operations claims from system failures, workplace injury suits, refrigerant exposure lawsuits, property damage from system malfunctions, environmental violations |
How to Get the Best Cheap Business Insurance for Your Construction Company
Below you can find our step-by-step method to find the best and cheapest business insurance for your construction company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
To ensure you get the best deal, research average costs for your business profile and determine which providers offer the cheapest rates overall. This will give you a measuring stick for how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
To narrow your list, research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, to align with your coverage needs and future ones, research coverage options to ensure you're covered for the right items.
- 4
Compare multiple quotes through different means
The best way to find the lowest rates is to compare multiple quotes for apples-to-apples coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Construction Business's Liability Risk
Reducing risk is key to managing insurance costs for construction businesses. We've organized risk mitigation strategies by risk level to help you find the best approach for your business type.
Construction Business Risk Type | Included Types of Construction Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | High-rise construction, bridge/infrastructure projects, demolition services, excavation/earthwork, electrical/utility work, hazardous material remediation |
|
Moderately high | Commercial building construction, roofing services, concrete/masonry work, plumbing/HVAC installation, structural steel work, heavy equipment operation |
|
Moderate | Residential construction, remodeling/renovation, flooring installation, drywall/painting, landscaping construction, small commercial projects |
|
Moderately low | Handyman services, minor repairs, interior finishing, cabinet installation, tile work, basic maintenance services |
|
Lowest | Construction consulting, project management, architectural services, construction estimating, permit services, construction education |
|
Best Insurance for Construction Business: Bottom Line
Nationwide is the best insurer for construction business insurance, while Hiscox offers the cheapest option overall. We also recommend getting quotes from The Hartford, Hiscox, and Thimble. To find the best deal, talk to agents, research providers and pricing and compare multiple quotes side by side.
Construction Business Insurance: FAQ
Below, we answer common questions about construction business insurance.
Who offers the best construction business insurance overall?
Nationwide offers the best business insurance for construction companies with a MoneyGeek score of 93 out of 100, excelling in customer service. The Hartford is a strong second.
Who has the cheapest business insurance for construction companies?
Here are the cheapest business insurance providers for construction companies by coverage type:
- General liability insurance: Hiscox at $21 monthly
- Workers' comp insurance: Thimble at $77 monthly
- Professional liability insurance: The Hartford at $115 monthly
- BOP insurance: Hiscox at $31 monthly
What business insurance is required for construction organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for construction businesses, with requirements varying by state. While not legally mandated, general liability insurance and surety bonds are effectively required by most commercial clients and property leases.
How much does construction business insurance cost?
Business insurance costs for construction businesses vary widely depending on the coverage type you want. Below we've broken down costs for commonly needed coverage of small businesses:
- General liability: $158 per month
- Workers comp: $89 per month
- Professional liability: $129 per month
- BOP insurance: $228 per month
How We Chose the Best Construction Business Insurance
We selected the best business insurer for construction companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.