5 Best Contractor Liability Insurance Companies

Chubb, The Hartford, and Next Insurance are top picks

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Even if you’re a pro at managing the risks of construction sites, accidents can happen. A falling object or even an error in design can lead to an expensive lawsuit. That’s why general contractors need general and professional liability insurance. Many general contractors may opt for a business owner’s policy, which bundles general liability and commercial property. And depending on local regulations and whether you have employees, you may also need builder’s risk insurance and workers’ compensation insurance. But choosing the right company can be overwhelming. 

In an effort to narrow down your choices, we evaluated 18 business insurance providers in the following categories: builder-specific coverages (30%), business owner’s policy (BOP) features (25%), general liability claim limits (15%), revenue limits (12.5%), customer complaints (5%), financial stability (5%), online purchase (5%), state availability (2.5%). Read on for our list of the best general contractor insurance providers. 

5 Best Contractor Liability Insurance Companies

5 Best Contractor Liability Insurance Companies
5 Best Contractor Liability Insurance Companies

Best for Affordable Premiums : Next Insurance

Next Insurance

 Next Insurance

Why We Chose It

Next offers customizable insurance packages for general contractors starting at $75 per month, plus great digital tools and free additional insureds. 

Pros & Cons
  • Affordable premiums

  • Live certificate of insurance

  • Free additional insureds

  • Fewer complaints than expected with the NAIC

  • Customizable coverage

  • 10% bundling discount

  • Not available in all states

  • Liability coverage limited to $1 million per claim

  • Does not offer builder’s risk coverage


Next Insurance, our top pick for the best small business insurance company for 2023, offers affordable starting premiums for customizable packages designed specifically for general contractors. Packages typically include general liability, commercial property, tools and equipment, commercial auto, and workers’ compensation, but you can also add coverages such as professional liability and business interruption insurance. You’ll get 10% off when you buy two or more policies, and you can save up to 25% with other discounts. However, Next does not offer builder’s risk insurance, and coverage is not available in all states. 

Next Insurance has an A- (Excellent) financial strength rating with AM Best and fewer complaints with the NAIC over the last three years than expected (based on the company’s size). What’s more, the company offers a unique, live, easily shareable certificate of insurance, which can be updated 24/7 with additional insureds, a common need in the construction industry. The quote and application process is also quick, easy, and can be completed entirely online, and there’s live chat support in case you need assistance. 

Plan Pricing

General contractor insurance packages start at $75 per month. 

Best for Larger Small Businesses : The Hartford

The Hartford

The Hartford

Why We Chose It

The Hartford offers a customizable BOP and provides most coverages a general contractor business could need, including builder’s risk insurance. The company also offers traditional and virtual risk management services. 

Pros & Cons
  • A+ (Superior) financial strength rating with AM Best

  • Fewer complaints with the NAIC than expected

  • Wide variety of coverages for general contractors

  • Offers risk management services

  • Liability coverage is occurrence-form

  • Coverage may not be available for online purchase

  • Not available in Alaska or Hawaii

  • Poor J.D. Power ranking


Given the breadth of coverage options and available risk management services, The Hartford is ideal for larger small businesses. The company offers a business owner’s policy that includes commercial property, general liability, and business income insurance, along with dozens of customization options, such as workers’ compensation and professional liability. You can also get builder’s risk insurance from The Hartford. What’s more, liability coverage is written as an occurrence policy, which covers claims for all incidents that occur while the policy is in effect, even if claims are made after the policy expires. 

The Hartford has an A+ (Superior) financial strength grade from AM Best and fewer complaints with the NAIC over the last three years than expected given its market share. However, the company’s digital tools are lacking compared to some competitors. You can get an instant certificate of insurance in most cases when you request one. But, depending on your business and coverage needs, you may not be able to purchase coverage online. 

Plan Pricing

While The Hartford does not disclose starting premiums for general contractor insurance specifically, the company provides the following average monthly insurance premiums across customers:

  • Business owner’s policy: $261
  • General liability: $88
  • Workers’ compensation: $70

Bear in mind, your premiums may cost more or less depending on your business location, number of employees, and other individual factors. 

Great for Customer Satisfaction : Chubb Ltd

Chubb logo


Why We Chose It

Chubb is ranked second by J.D. Power for small business insurance and received fewer complaints than expected with the NAIC over the last three years, making the company our top pick for customer satisfaction for general contractors. 

Pros & Cons
  • Ranked 2nd in J.D. Power’s Small Commercial Insurance Study

  • Fewer complaints than expected

  • A++ (Superior) financial strength rating with AM Best

  • Offers professional liability tailored to the construction industry

  • Offers some policies on an occurrence basis

  • Larger small businesses must work with an agent to get a quote

  • Doesn’t offer discounts or price estimates


Chubb wins for customer satisfaction, with a lower-than-expected number of NAIC complaints based on the company’s size and a high ranking in J.D. Power’s 2022 U.S. Small Commercial Insurance Study. The company also has the top financial strength grade from AM Best, which indicates a superior ability to pay claims. Chubb also offers coverage specifically tailored to the construction industry. For example, the company’s professional liability policy includes pollution liability coverage and does not exclude lead or asbestos. 

Chubb also offers general liability insurance coverage that can be purchased as occurrence-form coverage. Other common general contractor coverages, such as workers’ compensation and builder’s risk insurance, are also available. However, some of these coverages aren’t available through Chubb’s small business portal, which offers online quotes for businesses with less than $2 million in annual revenue. Larger small businesses or those that need specialized coverage may need to work with a Chubb-appointed independent agent to buy a policy. 

Plan Pricing

Chubb does not disclose pricing estimates for its policies. 

Best for Nationwide Availability : Insureon



Why We Chose It

Insureon is a small business insurance broker that can help you compare policies in any state, with an online quote and application process, state-by-state resources, and a wide variety of coverage options. 

Pros & Cons
  • Offers a wide variety of coverage types for general contractors

  • Available in every state

  • Offers premium comparisons to help you get the best price

  • Offers digital certificates of insurance

  • May result in emails from insurance companies and marketing partners

  • Not a direct insurer


Insureon is a nationwide insurance broker that provides online quotes for general contractor policies from several different insurance partners, including some of the companies we mention in this article. The company offers most coverages a general contractor could need, including general and professional liability, commercial property, workers’ compensation, commercial auto, and builder’s risk insurance. The quote process is entirely online and most businesses can get an instant certificate of insurance after purchase. 

However, Insureon does not write policies directly. When comparing quotes, you’ll need to research financial strength and customer satisfaction ratings for each company you’re provided a quote for. And using the service may result in marketing emails, from both insurance companies and Insureon’s marketing partners. Still, using Insureon will save you time comparing your options. 

Plan Pricing

Varies by insurance company

Best for High Claims Limits : Farmers

Farmers Insurance Life Insurance

Farmers Insurance Life Insurance

Why We Chose It

For general contractors who want extra protection, Farmers offers higher maximum claim limits than any other provider we reviewed, along with an umbrella policy for small businesses. 

Pros & Cons
  • Covers up to to $5 million per liability claim

  • Offers umbrella coverage

  • Multiple coverages for contractors

  • Free access to safety resources

  • Poor J.D. Power ranking for customer satisfaction

  • No online quotes

  • More complaints than expected with the NAIC

  • Doesn’t offer professional liability


Farmers offers several coverages for general contractors, including business property, general liability, tools and equipment, auto, and workers’ compensation. Claims limits up to $5 million per claim are available on liability policies, and the company offers umbrella coverage up to $10 million. The company also offers policyholders free access to MySafetyPoint, which is packed with loss control resources. However, if you choose to go with the company for its high claims limits, you’ll need to get your professional liability insurance elsewhere, since Farmers doesn’t offer it. 

The company is also ranked second-to-last in the J.D. Power 2022 U.S. Small Commercial Insurance Study and received more complaints with the NAIC than expected over the last three years, both indicators of customer satisfaction issues. And while you can begin the quote process by filling out an online form, you’ll need to work with an agent to buy a policy. 

Plan Pricing

Farmers doesn’t disclose any premium estimates for its business policies. 

Final Verdict

Next is a great option for quick, affordable coverage that can be secured online. But if you need higher limits or builder’s risk coverage, consider Chubb, which offers all the coverage most general contractors need, and has great financial strength and customer satisfaction ratings. Larger small businesses or those looking for occurrence-form liability coverage may opt for The Hartford instead. If you don’t need builder’s risk coverage and you want the most affordable premiums and digital tools, Next Insurance will be your best bet. Farmers is a good choice if you need high claims limits, but you’ll likely need to supplement it with coverage from another company. If you just need help comparing all your options, we recommend Insureon.  

Frequently Asked Questions

  • Is Insurance Required by Law for General Contractors?

    General contractors are typically not legally required to carry liability insurance. However, some clients may require coverage as a condition of the construction contract. Some local building codes also require builder’s risk insurance. Furthermore, if you have employees, you’ll be required to carry workers’ compensation insurance in most states, and if your business owns a vehicle, you’ll need commercial auto coverage by law in most states.

  • How Does Contractor Liability Insurance Protect Your Business?

    Lawsuits against contractors happen for a variety of reasons, including accidental property damage at a worksite, design errors that result in financial losses, or bodily injury to a passerby. Contractor liability insurance offers financial protection for legal fees and judgments against you. Without the right coverage, a lawsuit could bankrupt your business.

  • What Are the Common Exclusions in a Contractor Insurance Policy?

    Some common exclusions in contractor general liability insurance policies include:

    • Residential construction
    • Earth movement
    • Subcontractor work
    • Roofing operations
    • Height limits
  • Who Should Get a Contractor Liability Policy?

    Most businesses of any kind need liability insurance, and that includes contractors who work in the construction industry. Whether you’re a siding installer, solar contractor, electrical contractor, handyman, or general contractor, you need a contractor liability policy. If you own commercial property, a business owner’s policy bundles both liability and commercial property coverage.

Contrators discuss the building plans inside the building site

Jessie Casson / Getty Images

Article Sources
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  2. AM Best. "AM Best Assigns Credit Ratings to Next Insurance US Company."

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  12. Construction Financial Management Association. "Signing Off on a General Liability Policy? Beware of Exclusions."