Straight answers before you apply

Cost depends heavily on revenue, crew size, number of active lots, and which coverage lines you carry — a small custom-home GC might pay a few thousand dollars a year for GL and workers comp, while a multi-phase production builder carrying GL, builders risk, workers comp, bonds, and umbrella limits can run well into five or six figures annually. We quote based on your actual operation, not a generic template.

Search data shows a wide range depending on state, revenue, and claims history, with GL-related queries carrying CPCs of $100+ — reflecting real premium value in this category. We provide a firm quote after reviewing your payroll, revenue, and prior claims.

Builders risk premium is typically a percentage of the total insured value under construction, and scales with project type, location, and coverage duration — a single custom home costs far less to insure than a blanket multi-lot subdivision policy.

Bond premium (not the full bond amount) is typically 1-15% of the bond amount depending on your personal/business credit — a $50,000 license bond might cost a few hundred dollars a year for a well-qualified builder, more for lower credit or higher-risk bond types.

Often, yes — carriers frequently offer package discounts when GL, workers comp, and other lines are bound together, and bundling with one agency also simplifies renewal and claims handling.

At minimum: general liability, workers' compensation (if you have employees), and builders risk on active projects. Most production builders also need a license/permit bond, commercial auto for fleet vehicles, tools & equipment coverage, and increasingly an umbrella policy for the higher claim exposure of building multiple homes at once.

General liability covers third-party injury and property damage claims against your business; builders risk covers the physical structure and materials under construction against fire, theft, and weather damage. Most homebuilders need both — they protect different things.

No — GL covers third-party bodily injury and property damage, not the cost of fixing your own faulty workmanship. Completed operations coverage within a GL policy can respond to third-party damage caused by a defect discovered after the job's done, but it won't pay to simply redo bad work.

The core stack is general liability, workers' compensation, and builders risk on active jobs, layered with commercial auto if you run vehicles, tools & equipment coverage for your gear, and a license/permit bond required by most states — plus umbrella liability once your revenue and project scale justify higher limits.

Insurance protects your business from covered losses; a surety bond protects a third party (a project owner, a licensing board, the public) by guaranteeing you'll meet your obligations, and if a claim is paid, you're typically required to reimburse the surety. They're fundamentally different financial products even though people often shop for them together.

On a production/tract build, the builder or developer buys and holds the builders risk policy since they own the structure until closing. On a custom, owner-financed build, the arrangement varies by contract — sometimes the homeowner is required to carry it — so check your specific build contract.

Yes — without it, a single fire, storm, or theft loss on an unoccupied, uninsured structure under construction falls entirely on the builder's balance sheet, and most lenders and land developers require proof of builders risk before releasing funds or permitting a phase to begin.

Often, yes — many carriers offer blanket/reporting-form builders risk policies designed specifically for production builders working multiple lots at once, rather than requiring a separate policy per home.

No — builders risk coverage typically ends at completion/closing/occupancy; the buyer's homeowners insurance takes over from there. Coordinating the handoff date on every closing is a real operational detail production builders need a process for.

In most states, yes — a license or permit bond is a standard prerequisite for state or local contractor licensing, separate from any insurance requirement.

A license bond is a standing requirement to hold your contractor license, renewed annually regardless of which projects you're working; a performance bond is project-specific, posted to guarantee you'll complete a particular contract as agreed.

For most established builders with reasonable credit, bonds are straightforward to obtain — bond companies primarily underwrite on personal/business credit rather than construction loss history, which is different from how insurance underwriting works.

Usually yes — license and permit bonds are typically issued per state (sometimes per city or county), so a production builder expanding into a new market should expect to secure a new bond for that jurisdiction before breaking ground.

In most states, workers' comp is required for your direct employees; true independent subcontractors who carry their own coverage are generally not your responsibility — but misclassifying an employee as a 1099 sub is a common and costly audit finding, so verify classification carefully.

Yes — requiring proof of workers' comp (or a documented exemption) from every subcontractor on every lot protects you from being held liable for an uninsured sub's injured worker, and is standard practice among well-run production builders.

Most states impose fines, can issue stop-work orders, and can hold the business owner personally liable for injury costs — consequences that scale quickly on a multi-crew production build.

Strong safety programs, documented subcontractor insurance requirements, a clean claims history, and consistent year-over-year revenue all help. We'll walk through what carriers are actually scoring you on before you apply.

Yes — that's a core reason production builders work with a nationwide agency rather than a string of local agents; one point of contact can coordinate GL, workers comp, bonds, and builders risk across every state you're actively building in.

Yes — call 844-967-5247 or email josh@contractorschoiceagency.com and we'll put together a coverage package based on your actual operation, not a generic template.