Construction company insurance can seem complicated.  When you understand the types of insurance available and the risks they cover, you can see what you need for your business.  There are four areas to concentrate on: Commercial Auto Insurance, Builder’s Risk Insurance, Workers Compensation, and Liability.


Commercial Auto Insurance

The vehicles owned by your business and used in the course of your work should be covered by Commercial Auto Insurance.  It protects your vehicles on site as well as traveling between sites. In general, coverage includes loss due to theft and vandalism.  It also covers the costs of an accident.  This could be liability costs, medical payments and vehicle repair costs.


Builder’s Risk Insurance

This insurance provides your project with valuable protection.  It is property replacement coverage so it pays for the replacement of tools, equipment and materials if they are damaged.  The covered causes of damage are typically fire, vandalism, theft and adverse weather.  You can extend your coverage to other risks that your project faces. If your project is located at the coast or in a hurricane state, for example, you may need additional coverage for this. Important details to know about this construction company insurance are:


  • Also known as Course of Construction Insurance as it covers you for the duration of building
  • It has a term of 3, 6 or 12 months
  • Has a start and an end date
  • This is specialized coverage for the construction of new buildings and the renovation of existing ones
  • One policy provides coverage for everyone working/investing in the project


Do you need this insurance? A good way to answer this is: if your tools, equipment or materials were destroyed by a fire on site, could you easily replace them and the building with your own money?


Workers Compensation Insurance

This insurance is for the protection of your employees.  It covers them for medical expenses and assists with loss of income when they are injured at work.  It will also assist with retraining if required when they return to work.  Workers Compensation is not specific to the construction industry, however, it is mandatory for all employers to have this insurance.


Liability Coverage

Litigation is becoming more common in the construction industry. Hence, this coverage protects you from the costs of a liability lawsuit. It is possibly the most important construction company insurance you need as the costs of a lawsuit can put you out of business.  Contractors Liability covers you for the following liability claims:


  • Damage to third-party property
  • Bodily injury
  • Reputational Damage
  • Mistakes in advertising and marketing


Construction Company Insurance for Your Company


John Brown President Farmer Brown Insurance (888) 973 0016

John Brown – President

It is always advisable to work with a company that specializes in this insurance. As a result, you get coverage that is properly tailored for you. You don’t pay for things you don’t need.  There aren’t gaps in your protection.  All it takes is a few hours every year to make sure your insurance has you covered.  Our consultants at Farmer Brown Insurance can assist. Call Farmer Brown Insurance on (888) 973-0016.


Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.