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Best Insurance for General Contractors: Uncovering the Top Choices
Top-Rated Insurance Plans for General Contractors
Navigating the world of insurance for general contractors can be a headache. Construction projects are prone to accidents, design errors, and costly lawsuits, making it essential to choose an insurance provider that gives you peace of mind and robust coverage options. This guide will help you find the perfect fit for your business.
Top-Rated Insurance Solutions for General Contractors
- Best Overall: Erie
- Best for Customer Service and Coverage Options: CNA
- Best for Vehicle Insurance: Travelers
- Best for Workers' Compensation: Huckleberry
- Best for Key Person Insurance: Nationwide
- Editor's Picks
- Erie
- CNA
- Travelers
- Huckleberry
- Nationwide
- More Choices (2)
- Why You Can Trust Us
Best Overall: Erie
While Erie does receive a high number of complaints for commercial liability coverage, it shines in terms of general liability and property, auto, and workers' compensation businesses. With high liability coverage limits and surety bonds, Erie offers the financial protection that general contractors need. Surety bonds ensure satisfaction for customers by guaranteeing contract completion[1].
Erie provides up to $5 million in aggregate general liability coverage and $3 million in commercial auto coverage[2]. Just keep in mind that competitors may offer more coverage for transported property.
Exceptional Customer Service and Coverage Options: CNA
CNA has few complaints across its commercial liability, property, and commercial auto insurance businesses. It offers a wide range of coverage types and provides a Business Owner Policy, commercial auto, general liability, and cyber liability policies.
CNA's Contractors General Liability Extension Endorsement covers specific industry-related hazards for contractors, such as aggregate coverage limits for each project and coverage within 50 feet of railroad property[3]. However, the company lacks digital proof of insurance and live customer service chat options.
Best for Vehicle Insurance: Travelers
Travelers has the lowest number of commercial auto complaints compared to other insurance companies. It offers extensive inland marine coverage, which protects equipment and materials during transport and storage at job sites. This is particularly useful for general contractors[4].
The company provides an array of options that help lower upfront costs for low-claims-activity contractors, such as retrospective rating plans and plans with large deductibles[5]. The main downside of Travelers is that you must contact an agent to get a quote.
Best for Workers' Compensation: Huckleberry
Huckleberry offers high coverage limits for workers' compensation insurance, which is fundamental for contractors to protect against employee injuries or illnesses on the job[6]. Additional benefits include few overall complaints and simple online quote procurement, although the level of digital features can vary depending on the insurance company issuing the policy.
Best for Key Person Insurance: Nationwide
Nationwide offers key person insurance to safeguard general contractor businesses in case a critical individual passes away. The company excels in terms of customer complaints and diverse plan options. Just note that it lacks live customer service chat.
Why You Can Trust Us
Investopedia has been guiding readers on finding the best insurance for general contractors since 2020, based on thorough research and unbiased evaluations. Our aim is to empower you with knowledge to make well-informed decisions.
Our Evaluation Methodology
We analyzed industry data, market share, and customer search trends to pinpoint key features and leading insurance providers. We researched and assessed 17 companies based on 41 criteria, including financial strength ratings, complaint data, coverage types, coverage limits, digital features, and more[7].
- Key Points to Bear in Mind
- General contractors rely on insurance to guard against construction accidents, design errors, and lawsuits.
- Important considerations for insurance include general liability, workers' compensation, commercial auto, equipment and tools coverage, and professional liability/errors & omissions insurance.
- Researching companies that cater specifically to the construction industry can provide valuable insights. Examples include Huckleberry and Next Insurance.
[1] U.S. Small Business Administration. "Surety Bonds."[2] Huckleberry. "What Is Workers' Compensation Insurance?."[3] The Hartford. "Railroad Protective Policy."[4] Investopedia. "Inland Marine Insurance."[5] Travelers. "Loss Sensitive Insurance."[6] Workers' compensation insurance.[7] Investopedia. "How We Choose the Best General Contractor Insurance."
- In the realm of personal-finance, it's important for general contractors to consider insurance policies that offer robust coverage for their business needs, such as Erie's general liability, property, auto, and workers' compensation insurance, which provides financial protection and surety bonds.
- For those seeking extensive inland marine coverage to protect equipment and materials during transport and storage at job sites, Travelers is a top choice in the insurance finance sector, offering low commercial auto complaint numbers and various cost-lowering options.
