Builders liability insurance covers you as the builder for any damages that may come onto a property while you are constructing the property and depending on the policy for a certain length afterwards. Mine is good for 1 year after any work has been completed. Meaning that if anything happens to the property, because of something that was negligent on my behalf, the insurance will cover the damages. As far as I am concerned this is an absolute must if you are going to be working as a builder, renovator, or any type of tradesman that works in peoples homes. In some places you will be required by your municipality to not just get builders liability insurance, but to have a surety bond as well. This means that the person you are doing any type of construction for is protected if you take a deposit and leave town. Never give or take a deposit unless you have this, or your contractor or builder has this.

There are other kinds of insurance on the market as well, such as disability insurance that will protect you if while you are working you have an accident you will be covered for the amount you are insured for as well as for the time your policy indicates. These three types of insurance are also good for marketing your business. I always show homeowners that I have these insurances in place, and this is why I might charge more than the other guy who quoted the job as well. After all piece of mind through any construction phase no matter how large or small is very important.

If you deal with a broker for your vehicle insurance you might be able to get builders liability insurance through them as well. If they are not a broker you can still get this type of insurance through them, but I would guess this will not be in your best interest. Most likely the company that does the underwriting for vehicles will not have as good of rates for builders or disability insurance. Of course you can always talk with your life insurance agent about the disability insurance.