Contractors Insurance for Small Construction Businesses

Costs vary based on your trade type, annual revenue, number of employees, and project scope. A general liability policy for a small contractor typically ranges from $500 to $3,000+ per year. Builder's risk and tools coverage add to that total. Soma analyzes your specific operations to find right-priced coverage — often more affordable than going direct to a single carrier.

At minimum, most small construction businesses need general liability insurance and, if they have employees, workers compensation. Depending on your work, you may also need builder's risk, tools and equipment (inland marine), commercial auto, and completed operations coverage. Contract requirements from owners or lenders often dictate additional policies. Soma structures a full program based on your specific trade and project types.

Builder's risk insurance protects a structure under construction against damage from fire, theft, vandalism, wind, and other perils — from the first day of groundbreaking through project completion. Most lenders and property owners require it before work can begin. Soma places builder's risk for projects of all sizes, satisfying contract requirements quickly.

Standard general liability policies may not automatically cover subcontractors. You typically need to list them as additional insureds or require they carry their own policies. Soma's construction specialists review subcontractor arrangements and structure your program so there are no coverage gaps between your policy and the subs working on your projects.

Soma is built for speed. Through a single application, our Risk Management Team analyzes your business and accesses hundreds of specialty carriers simultaneously. Most small construction businesses receive quotes and can bind coverage in as little as one business day — far faster than traditional brokers who may take weeks.

Completed operations coverage protects you from liability claims that arise after a project is finished — for example, if a structure you built is later found to have a defect that causes injury or property damage. Many construction contracts require it, and claims can arise years after handover. It is a critical protection for any small contractor.

Yes — this is a core Soma specialization. Whether you have prior claims, operate in a high-risk trade, work on complex multi-trade projects, or have been declined by standard markets, Soma's specialty carrier relationships with Chubb, Kinsale, Liberty Mutual, and others allow us to place coverage that mainstream brokers routinely turn away.

Yes. Personal auto policies do not cover vehicles used for business purposes. If you or your employees drive trucks, vans, or any vehicle for work — to job sites, hauling materials, or transporting equipment — you need commercial auto coverage. Soma places commercial auto for contractors of all sizes, including hard-to-insure fleets and specialty-use vehicles.