Commercial Construction Insurance by Soma

A typical construction company needs a suite of coverages. This includes General Liability for third-party injuries, Builder's Risk to protect the structure during construction, Commercial Auto for vehicles, and Workers' Compensation for employees. Depending on your services, you may also need Professional Liability (E&O) and Inland Marine for tools and equipment. We analyze your specific operations to recommend the right combination of policies to ensure you are fully protected.

The cost varies significantly based on factors like your company's revenue, the size and type of projects you undertake, your location, claims history, and the coverage limits you require. High-risk operations may see higher premiums. At Soma, we shop your policy across hundreds of carriers to find the most competitive pricing for the comprehensive coverage your construction business needs, ensuring you get the right value without sacrificing protection.

Commercial construction insurance works by transferring your project-related risks to an insurance carrier in exchange for a premium. If an insured event occurs—like an accident, property damage, or a lawsuit—the policy covers the resulting financial losses up to the policy limits. This provides a critical financial safety net, protects your business assets, and is often required to win contracts with clients, lenders, and government agencies. It's an essential tool for managing risk.

Builder's Risk insurance, also known as 'course of construction' coverage, is a special type of property insurance that protects a building and materials while under construction. It covers losses from events like fire, theft, vandalism, and weather damage. The policy typically starts at groundbreaking and ends when the project is completed and occupied. It is essential for general contractors, developers, and property owners to safeguard their significant investment during the build.

Yes, absolutely. General contractors should always require subcontractors to carry their own insurance, including General Liability and Workers' Compensation. This protects the GC from being held liable for the subcontractor's actions or employee injuries. It is standard practice to collect a Certificate of Insurance (COI) from every sub before they begin work on a job site to verify they have adequate coverage in place.

Yes, single-project policies are very common, especially for Builder's Risk coverage. These policies are written specifically for the duration of one construction project. We can also help you secure an annual practice policy that covers all your projects throughout the year, which is often more cost-effective for busy contractors. We’ll help you determine which structure makes the most sense for your business and project pipeline.

To provide an accurate quote, we typically need details about your business operations, including annual revenue, payroll, and number of employees. For project-specific policies, we'll need the project address, construction type, total project value, and timeline. Having a history of your past insurance coverage and any prior claims is also helpful. Our streamlined application makes it easy to provide this information so we can get to work for you quickly.

Once your policy is bound, we can typically issue a Certificate of Insurance (COI) very quickly, often within the same business day. We understand that you frequently need COIs to start work on a new project or satisfy contract requirements, and our process is designed for speed and efficiency. We ensure you get the documentation you need without unnecessary delays, so your projects can move forward on schedule.