As many of you know the insurance market place in New York and especially New York City is a crazy one. As you begin your search for insurance be ready for a heck of a ride.
IF you happened to have read my 2016 Best Contractors insurance post, you’ll notice a few familiar faces but also some new comers.
Insurance companies are known to jump in and out of the New York contractor’s insurance marketplace and navigating this mess is not for the faint of heart
What you need to know first:
Due to the ever-changing market place that is available for New York Contractors Insurance, it has taken me nearly 6 months to finalize this list of companies
Helping contractors like you find the best liability insurance is my job, and pays my mortgage each month but it is also much more than that.
Helping contractors from small operations up to 100+ employee contracting firms, is my daily challenge. The ever changing market place and the unique needs of each contractor is what keeps my job exciting each and every day.
Buying contractors insurance in New York is a big decision. Aside from payroll it is often one of the largest expenses a construction company has.
Choosing the right broker to help you navigate the chaos and choose the right insurance company is critical.
For ease of reading and understanding this article is going to be broken down by region and by trade.
The insurance companies that work with New York City Contractors are different from the companies who offer coverage for contractors that stay out of the five boroughs. I will try to highlight and explain each as we go along.
Table of Contents:
Best NYC General Contractors Insurance Company
Best NYC Trade Contractors Insurance Company
Best Up State General Contractors Insurance Company
Best Up State Trade Contractors Insurance Company
The Best Insurance Company for Contractors Working in New York City
General Contractors: according to Websters are defined as “a person or business entity that contracts to be in charge of a building project, usually involving the use of subcontractors.”
For insurance purposes, we typically define general contractors as a construction firm that sub-contracts the majority of the construction labor. If that describes your firm, then this is the list for you.
The Best Insurance Company for Larger Commercial Only General Contractors:
Travelers is the best insurance company for commercial only general contractors generating 10 million or more in gross receipts. They have a rigorous process to even qualify you for a quote, however, if you qualify the value is tremendous.
Unlike many of the insurance companies listed in this article Travelers is an admitted insurance company. Which in short means it is guaranteed by the state of New York in the event of insolvency. But with a company the size of Travelers it is highly unlikely solvency will ever be an issue.
What do you get?
With Traveler’s you get more than just a great insurance policy with excellent coverage. You get industry leading tools and training provided at no additional charge to help you with risk transfer.
In addition, Travelers has a dedicated staff for construction, with in house claims and underwriters only on construction.
Also, Travelers can offer all lines of coverage, including: general liability, umbrella liability, auto liability, WORKERS COMPENSATION and even surety bonding. Working with one insurance company for all your business allows smoother handling when a claim arises as well as a better understanding of your business in the event you need something unique.
How much is it going to cost?
Travelers provides incredible value with competitive pricing plus a lot of value-added services.
The big catch with Travelers is qualifying for a quote.
Because Travelers is one of the only admitted insurance companies offering contractors liability insurance in New York, they can be extremely selective. They are only looking for contractors with the best safety and risk transfer practices.
The Best Insurance Company for Mid-Size Commercial and Residential General Contractors:
If your firm does greater than $5 million in receipts and may or may not do some residential work, Prime Specialty is most likely the best insurance company for you.
Prime has provided very solid contractors liability coverage for the mid to large firms year after year. Unlike Travelers, Prime has no issues with residential work.
One of the best things about Prime is the flexibility, with offering no height limitations and no residential limitations. Also, if you have a special or unique project the underwriting team at Prime is often willing to step up and provide the coverage needed.
What do you get?
Prime offers a custom policy with their own forms. This can be a benefit as the entire policy can be customized as needed to fit your risk. The only downside is sometimes developers and building owners want specific ISO forms like the CG2010. Which Prime does not provide unless specifically requested because Prime has their own equivalent form the PSG-007.
Also, all Prime polices include a risk control meeting with a construction Attorney to review your risk transfer procedures. This is a great value added service which many contractor’s liability insurance companies do not include.
How much is it going to cost?
Prime Specialty has been known to price aggressively on the best in class risks. But what is also great is if you have had some claims Prime might still be willing to offer you a quote just not in their most favorable pricing tier. Bottom line, Prime can be the cheapest CGL at times but more often Prime is the best option. Providing the broadest coverage with a competitive price.
The Best Insurance Company for Smaller Mixed New York City General Contractor:
Smaller construction firms often get ignored by insurance companies, but not with Colony. They have the underwriting team to quickly and efficiently quote coverage for the smaller New York City General Contractors.
The benefit of Colony over the competitors for smaller GC’s is the ability to adapt as your business does. Smaller firms often take varied projects, one day it’s a new construction low rise building, and the next it’s a school remodel.
With the ability to underwrite and provide coverage for all the different projects you take on Colony is an excellent choice.
What do you get?
Colony provides a very good ISO based insurance policy with standard forms. This helps simplify the process when working for a larger general contractor. Custom forms can cause headaches which are not needed when you are trying to land that contract.
Colony has also been very consistent with their appetite and pricing which allows you stability in pricing your longer-term contracts.
How much is it going to cost?
Colony’s pricing is very competitive, with low minimum premiums it is a great solution to provide good coverage at a reasonable premium.
Colony’s general liability policies are rated on gross receipts so keeping a close eye on your receipts throughout the year is very important.
The Best Insurance Company for Smaller Residential Focused General Contractors:
Home remodeling contractors are often held to a much lower standard of coverage by the homeowners you work for. But just because the homeowner you are working for might not care what kind of coverage you have doesn’t mean you shouldn’t.
While your firm could probably secure contracts with a bare bones liability policy, it is not smart business. You would be exposing your business to all sorts of risks. Mainly action over exclusions and sub-contractor exclusions.
Having a stable and reputable insurance company like Southwest Marine, an industry leader for renovation and home builders, will help protect your business from the worst-case scenario.
What do you get?
Southwest Marine, has been providing home builders and remodeling contractors with industry leading coverage for several years. With simple coverage forms and increased excess liability limits available it is a great solution for residential contractors.
How Much is it going to cost?
Southwest Marine rates their renovation general liability policies on gross sales. The good news is, they have some of the lowest minimum premiums of any insurance company offering good coverage in New York City. They provide a great value compared to many of the other insurance companies in the market.
Trade Contractors or Artisan Contractors are defined by the Insurance Information Institute as the “skilled laborers performing work at customer’s premises.” (Link http://www.iii.org/publications/insuring-your-business-small-business-owners-guide-to-insurance/insurance-for-specific-businesses/artisan-contractors) For simplicity sake when it comes to insurance we define artisan’s or trade contractors as the contractors with direct labor, actually doing the work.
The Best Insurance Company for Larger Trade Contractors Operating in New York City:
Trade Contractors often get taken to task over their insurance coverage by the general contractors they are working for. The reason is far too often trade contractors purchase limited or basic coverage that exposes the general contractors to enormous risk.
The good news is that for larger trade contractors focused on commercial, Travelers can be your saving grace. With very broad coverage, you won’t have the constant harassment from the general contractors you are working for.
What do you get?
Industry leading safety and risk management training and tools, extremely broad coverage forms, construction focused underwriting and claims adjusters, plus the benefit of an admitted insurance company with a name you can trust.
Travelers stands head and shoulders above the competition if you qualify for a quote.
The key is making sure your business qualifies from a size, safety and risk management view point to earn a quote from Travelers.
Because they offer industry leading coverage, they are very selective in who receives a quote. If Travelers is willing to offering a quote they typically will quote ALL lines which eliminates the multiple carrier situation that is typically the case with New York construction insurance.
How Much is it going to cost?
Price is always a concern; the good news is Travelers is extremely competitive. Because they only work with top tier, safety focused contractors their pricing is typically aggressive.
The Best Insurance Company for Smaller Trade Contractors + Sub-contracting:
Smaller trade contractors are much more limited in who will offer good coverage at a reasonable price. Minimum premiums can eliminate many insurance companies right away.
However, MiniCo is one of the few contractors insurance companies that offers good coverage with a low minimum premium. While MiniCo does use some of their own specialty forms instead of industry standard ISO forms, the forms are close enough to ISO forms that this is usually not a problem.
What do you get?
With Minico you get a very solid insurance policy, including action over coverage. However, you do have a hammer clause but at this price point that is not a surprise.
MiniCo is also somewhat flexible which is rare for smaller contractor’s insurance policies, as most insurance companies are very rigid with both underwriting and coverage forms.
How Much is it going to cost?
MiniCo is great from a pricing standpoint with the low minimum premium of $12,500. This allows many contractors who previously did not have good coverage to step up and get action over coverage at a reasonable price point.
The Best Insurance Company for Smaller Trades with ZERO Sub-contractors:
If you are one of the few artisan contractors who never use sub-contractors, Merchants Insurance can be an excellent option for your general liability.
Merchants is very strict with their underwriting process. However, if you qualify and use no sub-contractors, the price and coverage combination is pretty much untouchable.
What do you get?
You get to work with a New York only insurance company, with very good coverage forms and 100% of the staff is New York based, from claims to underwriting and everything in between. This simple difference goes a long way when things need to be done.
How Much is it going to cost?
Merchants has the lowest minimum premium of any good NYC contractor’s insurance program at $2,500, however most accounts start around $10,000. This is an excellent value if you qualify.
The Best Insurance Company for Larger Fire Sprinkler Contractors:
Fire Sprinkler contractors often get lumped into mechanical or plumbing class codes. However if your policy says you are covered for plumbing, you are probably not covered for fire sprinkler work.
If you are a larger fire sprinkler contractor with greater than $1,000,000 in payroll a good safety record and loss control practices Travelers Insurance Company is the best option available.
Qualifying for Travelers is not easy as you must be a top tier contractor with the best safety and risk management practices.
What do you get?
With Travelers you get a complete solution from General Liability to Workers Compensation. In addition, you get access to the Travelers risk management and safety training to further enhance your safety practices. Travelers also has great coverage forms and is admitted so you avoid taxes and fees common to non-admitted insurance companies.
How Much is it going to cost?
Travelers only wants the best of the best Fire Sprinkler contractors, because of that, if you qualify for a quote the pricing is very competitive. The goal of Travelers is to stay on your account for as long as you are in business.
The Best Insurance Company for Roofing Contractors:
Roofing contractors always have a tough time when it comes to insurance but especially in New York with the Scaffold Law. Admiral offers a very good general liability policy for roofing contractors.
What do you get?
With Admiral you get good coverage from an A+ insurance company backed by W.R. Berkley one of the premier commercial insurance companies in the world.
How Much is it going to cost?
Roofing insurance isn’t cheap, but that is no surprise. Good coverage like you get with Admiral might be a slight premium over your other insurance options but when a claim happens the coverage is worth the cost. Minimum premiums start at $45,000.
The Best Insurance Company for Scaffolding & Rigging Contractors:
Scaffolding erection and rigging in New York City are two of the highest risk activities happening in the 5 boroughs. Because of the high-risk nature and loss history for the industry, insurance for scaffolding and rigging contractors has been reduced to very very few options.
Currently the best option available is with American Empire Insurance Company. However, American Empire can be very selective when it comes to offering a quote, so qualifying for a quote can be a bit of a challenge.
What do you get?
With American Empire you get stability, regardless of the craziness of the market American Empire remains very consistent. American Empire has provided contractors liability insurance with no height restrictions or severe limitations to your work for decades.
How Much is it going to cost?
Scaffolding insurance is very expensive and American Empire is no different with policies starting at $150,000, and quickly going up from there. However, compared to some of the competition which starts at $500,000 it’s a relative bargain.
The Best Insurance Company for Environmental Contractors including Fire Water Cleanup and Asbestos Remediation:
Environmental companies can encompass a lot of different businesses, the main types we insure are Restoration companies, that perform fire, water and mold cleanup.
Additionally, you have tank removal contractors, Asbestos remediation contractors. Really any construction firm that involves cleanup or demolition can be classified as an environmental risk. For most environmental contractors Nautilus insurance co is the best available option.
What do you get?
Nautilus provides an extremely broad package with both contractor’s pollution and general liability which helps eliminate the confusion of GL vs PL when it comes claim time. In addition, you get the A+ backing of a W.R. Berkley Insurance company.
From asbestos remediation to your basic ServePro type risk Nautilus can provide top tier insurance coverage.
How much is it going to cost?
Nautilus is very competitive for top tier businesses, they do have pricing structures to accommodate the companies with losses. But look to offer the most favorable pricing for best in class contractors.
Bottom Line:
If your construction firm is working in or based in New York City having the right insurance coverage is absolutely CRITICAL. Having the right insurance coverage will protect your business, and open doors to new jobs that might not accept inferior coverage.
Start the conversation today to see if you qualify for the best.
The Best Insurance Company for Contractors Not working in New York City
Once you get outside of New York City. Options for New York contractor’s insurance open dramatically. While in New York City, there might just be 3 or 4 insurance companies even willing to offer you a quote.
But once you exclude NYC, there’s anywhere from 10 to 15 different insurance companies that could offer coverage for your business.
General Contracting firms sub-contracting the majority of the construction labor.
General or prime contractors are usually required to have good coverage as the final responsibility lies with their insurance coverage. Just because it is required doesn’t make getting the right coverage any easier.
The Best Insurance Company for Larger Commercial Only General Contractors:Up State
For commercial only general contractors, the best insurance policy Is with Travelers insurance group. Travelers only works with commercial general contractors, with greater than $10,000,000 in gross receipts. Also, Travelers has strict safety and risk management requirements before they are even willing to offer you a quote.
What do you get?
Not many insurance companies, can match the broad coverage forms or the safety and risk management tools offered by Travelers Insurance Co.
How much is it going to cost?
Traveler’s doesn’t market itself as the cheapest insurance option. But because of their strict underwriting guidelines if you are fortunate enough to receive a quote, it is often a very competitive insurance quote.
Travelers is also looking to earn your business for the long term, so they look to keep pricing competitive year after year.
The Best Insurance Company for Smaller Commercial General Contractors:
Smaller commercial general contractors are often left struggling between price and good coverage.
Colony however, offers a good combination of both price and coverage for the smaller general contractors operating outside of New York City 5 boroughs.
What do you get?
Colony offers good coverage forms, with action over coverage included. Policies are rated on gross receipts which makes for easy audits. But the policy does have a hammer clause / sub warranty. While this isn’t ideal it is expected at this price point.
How much is it going to cost me?
For contractors operating outside of the 5 boroughs colony has low minimum premiums starting at $7,500. This is just a starting point with many risks in the $25,000 price range.
The Best Insurance Company for Residential only Remodeling Contractors or Luxury Home Builders:
For residential builders and renovation contractors the clear winner for both coverage and price is Southwest Marine Insurance Company. Southwest has been offering a quality product for nearly a decade for the home builders and renovation contractors.
What do you get?
Southwest offers a comprehensive contractors liability policy for home builders and contractors. They can package additional coverage such as cyber hired and non-owned auto and even an umbrella which eliminates the need for multiple policies for each line.
How much is it going to cost me?
Southwest Marine is known for providing excellent value with a unique rating structure for new home builders rated on the number of new homes built versus gross receipts
Trade or Artisan Contractors firms performing the work themselves.
When it comes to contractors who perform their own construction work. Outside of New York City, there are far more options for good coverage. Because there are so many options I am going to break this section up into different trades.
The Best Insurance Company for Carpentry Contractors:
For carpentry contractors outside of New York City, Main Street America offers a great policy. One of the many benefits of Main Street America is that they can offer general liability, umbrella, and commercial auto.
What do you get?
With Main Street America, you get a standard ISO based insurance policy with good coverage. Having a standard ISO based insurance policy eliminates confusion, especially if you’re working for a larger general contractor. Main Street can also offer up to a $5,000,000 umbrella within 24 hours.
How much is it going to cost me?
There are a lot of insurance companies offering basic or limited insurance coverage to Carpentry contractors.
When compared to the inferior policies, Main Street America is going to cost you a premium. However, compared to the other similar good coverage policies, Main Street America offers a very competitively priced policy.
The Best Insurance Company for Electrical Contractors:
Electrical contractors have many options for their insurance. However, few companies can offer the convenience, coverage, and pricing of Merchants Mutual. Being a New York-only company Merchants Mutual understand the needs of New York electrical contractors.
What do you get?
You get an easy to understand insurance policy rated on the number of employees. The Underwriting process can be a little bit challenging but that is by design to insure only the best contractors get a policy. If you qualify, their pricing and coverage remain stable year after year.
How much is it going to cost me?
Because Merchants Mutual takes a very careful approach to underwriting, if you qualify for a policy the pricing is stellar. With labor costs rising drastically in New York rating on the number of employees is a huge benefit, and helps keep audits simple and painless.
The Best Insurance Company for Plumbing Contractors:
Plumbing contractors in New York have a lot of insurance options, but once again few insurance companies can offer the combination of convenience, coverage, and pricing that Merchants Mutual does.
What do you get?
With Merchants Mutual you get a great, local New York only insurance company. With all staff. from underwriting to claims based here in New York it makes getting things done very simple.
How much is it going to cost me?
Because Merchants Mutual does risk control on all construction risks their pricing is very favorable IF you Qualify. Once again, the policy is rated on the number of employees instead of gross sales or payroll. This makes for simple and easy audits.
The Best Insurance Company for Roofing Contractors:
Roofing contractors in New York even excluding operations in the 5 boroughs have a struggle to get good insurance coverage. However, Admiral insurance part of the WR Berkley Group of companies is here to provide best in class insurance coverage for your roofing business
What do you get?
In Addition to providing good coverage for roofing contractors the policy is relatively short, simple and easy to understand. Admiral uses standard ISO, based policy forms. These standard forms help eliminate confusion when you’re working for a general contractor.
How much is it going to cost me?
Admirals minimum premium for roofing contractors outside of New York City is $35,000. This might seem like a lot of money if you currently have limited or basic coverage however, compared to the competition offering good coverage this is a very reasonable premium.
The Best Insurance Company for Environmental Contractors including Fire Water Cleanup and Asbestos Remediation:
Environmental companies all have very unique risks that are not covered by standard general liability policy. That’s where an insurance company like Hamilton which offers a combined general liability and pollution liability insurance policy shines.
What do you get?
With Hamilton, you get industry leader in the environmental insurance marketplace, offering broad coverage with action over and blanket additional insured.
How much is it going to cost me?
Premiums for a combined pollution and general liability policy start at just $3,500 per year. With such low premiums there is no reason for you to leave your business without the correct coverage.
Bottom Line:
Having the right insurance policy in place for your construction business is critical. Far too often contractors are left out to dry by their insurance company because they chose to purchase a bargain basement policy instead of a best in class policy. IF you are concerned that your business doesn’t have the right coverage please click the next step button below.
