The real estate business is exciting and fast-paced, with many chances for entrepreneurs and visionaries alike. As you embark on your journey to build, renovate, and transform properties, fortifying your endeavors with the right protection is essential.
Real estate developer insurance is your steadfast ally, shielding you from the uncertainties that can threaten your progress and hard-earned investments. Insurance can help if real estate investors sue for breach of contract. You can also use insurance to cover dishonest accts that real estate agents or any other employees commit. Read this guide to know the policies included in real estate developer insurance, the cost of premiums, and the best companies.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
General liability insurance provides coverage if your business operations and the products you sell cause bodily harm, injury, or property damage. This policy also exempts you from any legal liability your business may be subjected to if it’s sued for copyright infringement, reputational damage, and advertising injury.
The per occurrence limit under general liability insurance for real estate developers is $1 million, whereas the aggregate policy limit ranges between $1 million-$2 million.
Product liability insurance–Under this add-on, your real estate developer's business is exempted from any legal and financial costs it may be subjected to in the event the use of its products causes third-party bodily injuries and property
Excess liability insurance–If your business activities are associated with high levels of risks, then we recommend that you purchase this add-on as you can use it as your financial backup in the event your general liability insurance for real estate developers get exhausted
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
Professional liability insurance, also called errors and omissions insurance, protects you and your employees against negligence claims while providing professional services. This business insurance protects you from any legal expenses you may be subjected to if your client sues you for making an error, a mistake, or an oversight. It also protects you from being financially liable if you cannot provide your services within the set deadline.
Insurers will pay you a $1,000,000 per occurrence limit and a $2,000,000 aggregate limit under this policy.
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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
This business insurance provides financial immunity if your commercial property (including your rented or owned commercial building and its physical contents) gets destroyed by fire, vandalism, theft, and weather-related events such as lightning and windstorms.
It typically ranges between $100,000 to $1,000,000. The deductibles under this policy determine how much you get after the approval of your reported claim.
Floods insurance–Under this add-on, you are protected from incurring the costs of repairing, rebuilding, and replacing your damaged commercial buildings and the contents after they have been damaged by floods
Terrorism insurance–Purchase this add-on as it will confer you with financial immunity if your commercial property gets destroyed by or damaged by terrorist acts
| CoverWallet | Thimble (Best) | NEXT | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $2,000,000 | $2,000,000 | $300,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $500,000 | $260,000 | $25,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
This real estate developers insurance is a bundled policy that merges general liability insurance (GLI), commercial property insurance, and business interruption insurance into one core policy.
Under this bundled policy, your business is covered against the following claims and losses: commercial property damage, third-party bodily injury and property liability, and compensation for loss of income.
Your insurer also helps pay for your commercial rent and employee payroll if you cannot do so following the disruption of your income-generating activities/operations. Please note that this policy doesn't cover professional malpractice or commercial auto-related accidents.
Pollution liability insurance–If your real estate developers' business activities are prone to cause unintentional or unexpected environmental pollution (whether gradual or sudden), then you should consider purchasing this add-on as it will cover you against the following costs: Clean-up costs, legal expenses, crisis management, third-party bodily injury, and property damage
Equipment breakdown insurance–You can use this add-on if the tools and equipment you use for your business operations malfunctions or breakdowns due to electrical or mechanical failure. Through this add-on, your insurer pays for the costs of replacing and repairing the insured malfunctioning tools and equipment
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Your insurer of choice will provide financial coverage if your insured tools and equipment get lost, stolen, or damaged by fire, vandalism, and weather-related events such as windstorms and lighting.Insurers will only provide coverage to tools and equipment less than 5 years of age and those that are moveable. Please note that tools and equipment destroyed by floods, pests, vermin, and terrorist acts are not covered under this policy.
It ranges between $700 to $5,000. Usually, the risks your business tools and equipment are exposed to, and the deductibles as outlined in this policy dictate how much an insurer pays you upon the approval of your reported claim.
Inland marine coverage–In the event your tools and equipment get stolen, lost, or get damaged by fire, lightning, or some weather-related events such as hailstorms during their transportation from your business premises to your designated job site, then you will be exempted from incurring the costs of repairing or replacing them through this add-on
Commercial auto insurance covers risks associated with vehicle ownership. This is a commercial insurance policy that protects you from the following:
Auto accident liability–This policy will cover the cost of accidents that your commercial vehicle caused
Medical payments–Both your passenger’s and your medical expenses are covered under this policy
Vehicle damage–Damages on your vehicle arising from vandalism, theft, fire, and some weather-related events such as hailstorms
Uninsured and underinsured financial liabilities–Commercial auto insurance provides you with financial immunity in the event your commercial vehicle gets hit by an uninsured or underinsured motorist
An insurer may pay you a bodily injury and property damage liability coverage limit of $1,000,000 and a medical payment coverage limit of $10,000 per person.
Engine protection coverage–Through this add-on, you are exempted from incurring the costs of repairing or replacing your commercial vehicle's engine and some parts of its gearbox after they have been destroyed or damaged by water leaks/ingression or from an oil leakage that's caused by accidental damage
It's commonly known as workers comp insurance. It's only in Texas and Wyoming, where employers are not mandated by the state to purchase this real estate developer insurance. Through this policy, your employees' work-related injuries and illness medical expenses are catered for by the insurer of your choice.
Your employees are paid partially for their lost wages. Disability and dismemberment benefits are also paid through this insurance policy. And if your employee sustains fatal injuries, his/her named beneficiary will be paid death benefits through this coverage.
There are no coverage limits for the workers comp insurance for real estate developers. Usually, the coverage and benefits are paid out to your employees per your state's laws.
Foreign workers compensation–Through this add-on, your foreign employees will be covered against any financial burden if they get work-related injuries and illnesses. They also stand to benefit from repatriation financial aid following a job-related injury or illness
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $38 | $456 | $0-$500 |
| Professional liability insurance | $46 | $552 | $500-$1,000 |
| Commercial property insurance | $50 | $600 | $1,000-$2,000 |
| Business owner's policy | $85 | $1,020 | $1,500 |
| Tools and equipment insurance | $40 | $480 | $500-$1,000 |
| Commercial auto insurance | $55 | $660 | $500-$1,000 |
| Workers compensation insurance | $90 | $1,080 | $2,500-$5,000 |
The average real estate developer insurance cost is $38 per month or $456 per year for a $1 million general liability policy. Factors that affect the cost of premiums are claims history, business history, policy limits, location, deductibles, annual revenues, and number of employees. Here’s a table showing the cost of a $1 million general liability policy from the best real estate developer insurance companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $22 | $264 | Best overall; Fastest general liability insurance for real estate developers |
| The Hartford | $24 | $288 | Workers compensation insurance for real estate developers |
| CoverWallet | $27 | $324 | Comparing real estate developer insurance quotes online |
| Tivly | $30 | $360 | Comparing real estate developer insurance quotes over the phone |
| Thimble | $32 | $384 | On-demand coverage for real estate developers |
| Hiscox | $34 | $408 | Real estate developers who primarily provide their professional services to their clients |
Get all the best quotes from leading providers in a click of a button!
Here are the best real estate developer insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability policy.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for real estate developers
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is a digitally operated and privately owned insurance company that sells its bundled policies at a 10% discount. Through its website, clients can purchase and manage their policies online. NEXT also offers free insurance advice through its network of licensed insurance agents.
Best for: Best overall; Fastest general liability insurance for real estate developers
Average cost: $22 per month
Our rating: 10/10
You can track your coverage status with real-time updates
You can report a claim any day of the week
It has developed an easy-to-download and use mobile app
Limited add-ons to general liability insurance
The Hartford was founded in 1810. This A+ AM Best rated insurer is ranked as the 13th largest property and casualty insurance carrier in the USA. It provides its real estate developer insurance to all 50 states. The A+ BBB-rated insurer also provides its customers with financial services.
Best for: Workers compensation insurance for real estate developers
Average cost: $24 per month
Our rating: 10/10
Offers its clients free insurance guidance
You can compare all its available coverage options through its AI-powered website
It's possible to purchase its real estate developer insurance policies online
Not an insurance company but an insurance broker
CoverWallet is an online insurance broker whose headquarters are found in New York, USA. Inaki Berenguer is the CEO and founder of this financially stable and capable insurer. This company allows you to compare quotes online. Moreover, you can easily manage your policies online through the MyCoverWallet dashboard.
Best for: Comparing real estate developer insurance quotes online
Average cost: $27 per month
Our rating: 10/10
Fast and straightforward quotation process
Competitively priced premium rates
Compare quotes over the phone
You need to call to get a quote
Tivly is an online insurance agency that connects and matches its customers with commercial insurance policies that suit their business needs and preferences. Some of the policies this privately owned and USA-based insurance carrier deals in include general liability insurance, business owners policy, commercial auto insurance, workers comp insurance, and commercial property insurance. Call now to compare quotes over the phone.
Best for: Comparing real estate developer insurance quotes over the phone
Average cost: $30 per month
Our rating: 9/10
Offers monthly, hourly, and day-long premium rates
Provision of instant, reliable quotes
You can purchase its real estate insurance through its mobile app
You can’t reach customer service by calling
Thimble is an online insurance company specializing in providing business insurance to small-scale business owners. The Markel Insurance company backs this privately owned and A- AM Best rated insurer provider. What sets this adept insurer apart from other online insurance companies is its ability to provide temporary and on-demand coverage to its policyholders. It's also the only known insurer in the USA known to sell its insurance policies via a mobile app.
Best for: On-demand coverage for real estate developers
Average cost: $32 per month
Our rating: 9/10
You can report a claim through phone, email, and by using its mobile app
Has been in operation since 1901
It provides global/worldwide coverage
Their comprehensive policies may have greater premiums than general insurance companies
Hiscox has been rated as an A+ online insurance company by the Better Business Bureau and AM Best. This 122-year-old insurer has its headquarters located in Bermuda, United Kingdom. It specializes in providing commercial insurance to small business owners. Some real estate policies you can purchase from Hiscox include general liability insurance, professional liability insurance, and workers comp insurance.
Best for: Real estate developers who primarily provide their professional services to their clients
Average cost: $34 per month
Our rating: 9/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow
Not all those who wander are lost.
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