There is more than one type of insurance for builders. There are also different types of insurances for different types of companies. Insurance for builders in some areas is mandatory, but in other areas may not be. In either case if you are a builder you should have all of the necessary insurance. Not just for piece of mind for you and your clients, but works as a good marketing tool to show you are a real business and not some fly by night company. In fact, having all of the proper insurance will show that you are a true professional as well. I show my clients my insurance and explain to them the costs and why I have to charge more than someone that does not carry necessary insurance. At that point most clients say they did not even think of asking the other companies quoting on the same job for insurance, when they go back and ask, many do not carry anything, which instantly gives me a ton of credibility and builds trust with my clients. And often wins me the job even though I may be 10 to 20% higher. After all, what else is the other company hiding if they did not disclose everything from the beginning? Now the client sees that being 10-20% higher is because I do not cut corners and only give the best service.

The different types of insurance for builders may vary from place to place. The most common insurance for builders is liability insurance for the company. This protects any problems, up to a certain value, that might arise over the course of 1-5 years after construction. Then there is builders risk insurance which can be bought by the builder or the building owner that is good only for the length of construction. This protects the owner if there is damages that occur during construction. Then you will need to carry workman's compensation and or disability insurance for you and your workers. Then of course you will want to make sure all of the contractors you hire also have the proper insurances.