What is completed operations coverage for contractors?

Completed operations coverage extends your GL to cover claims that arise after a project is finished. For example, if a structure you built has a defect that causes injury 2 years later, completed operations covers the claim. It's included in most standard GL policies and is one of the most important protections for contractors.

Does my GL cover damage caused by my subcontractors?

It depends. Your GL may cover damage caused by subs as an additional insured, but the better practice is requiring all subcontractors to carry their own GL and name you as additional insured on their policy. Without this, a sub's mistake becomes your financial problem.

What is builder's risk insurance?

Builder's risk (also called course of construction insurance) covers a structure under construction against covered perils — fire, wind, lightning, vandalism, theft of materials. It covers the project from groundbreaking to completion. Most construction loans and owner-builder contracts require builder's risk before work begins.

Can ERGO NEXT cover construction businesses?

Yes. ERGO NEXT covers a wide range of construction trades including general contractors, electricians, plumbers, HVAC, roofing, painting, flooring, drywall, and more. Get an instant online quote for GL, workers' comp, tools coverage, and commercial auto.

What is completed operations coverage for contractors?

Completed operations coverage extends your GL to cover claims that arise after a project is finished. For example, if a structure you built has a defect that causes injury 2 years later, completed operations covers the claim. It's included in most standard GL policies and is one of the most important protections for contractors.

Does my GL cover damage caused by my subcontractors?

It depends. Your GL may cover damage caused by subs as an additional insured, but the better practice is requiring all subcontractors to carry their own GL and name you as additional insured on their policy. Without this, a sub's mistake becomes your financial problem.

What is builder's risk insurance?

Builder's risk (also called course of construction insurance) covers a structure under construction against covered perils — fire, wind, lightning, vandalism, theft of materials. It covers the project from groundbreaking to completion. Most construction loans and owner-builder contracts require builder's risk before work begins.

Can ERGO NEXT cover construction businesses?

Yes. ERGO NEXT covers a wide range of construction trades including general contractors, electricians, plumbers, HVAC, roofing, painting, flooring, drywall, and more. Get an instant online quote for GL, workers' comp, tools coverage, and commercial auto.

Industry Type

Business Insurance for Construction Businesses

Construction is the highest-risk industry for workplace injuries and property damage claims. The right coverage keeps your projects — and your business — moving forward.

$100–$600/ monthGeneral contractors typically pay $200–$500/month for comprehensive coverage. Specialty trades (electricians, plumbers) run $100–$250/month. Roofers and demolition contractors pay $300–$600+/month.

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Coverage Types for Construction Businesses

These are the key insurance policies most relevant to your business type — ranked by importance.

🛡️

General Liability

Required

Mandatory for virtually all construction work. Covers third-party bodily injury and property damage on job sites. Required by GCs, property owners, municipal permits, and state licensing boards.

👷

Workers' Compensation

Required

Construction has the highest workplace fatality and injury rate of any private industry. Workers' comp is mandatory in all states (with minor exceptions) and non-negotiable for any construction operation with employees.

🏗️

Builder's Risk

Highly Recommended

Covers structures under construction against fire, wind, theft, and vandalism. Required by most lenders and owners on new construction projects. Typically purchased per-project.

🚗

Commercial Auto

Required

Construction vehicles — trucks, vans, heavy equipment trailers — require commercial auto coverage. Personal auto policies exclude business vehicle use.

🔧

Tools & Equipment (Inland Marine)

Required

Covers tools and equipment on job sites, in transit, and in storage. Job site theft of tools is one of the most common construction insurance claims.

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What You Need to Know

→OSHA recordable injury rates in construction are 3–4× the private industry average — workers' comp is both legally required and practically essential.
→Most construction contracts require GL limits of $1M/occurrence and $2M aggregate — verify your limits match contract requirements before signing.
→Builder's risk must be purchased before construction begins — you cannot add it retroactively after a loss occurs.
→Subcontractor management is critical — if an uninsured sub causes damage on your job site, you may be held responsible as the GC.
→Completed operations coverage (part of GL) covers claims that arise after a project is finished — critical for contractors.

What Does It Cost?

$100–$600per month

General contractors typically pay $200–$500/month for comprehensive coverage. Specialty trades (electricians, plumbers) run $100–$250/month. Roofers and demolition contractors pay $300–$600+/month.

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Frequently Asked Questions

A general contractor needs: GL ($1M/$2M minimum), workers' comp (if you have employees), commercial auto (for vehicles), builder's risk (per project), and tools/equipment coverage. Many GCs also carry umbrella/excess liability and contractor's professional liability for design-build work.

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