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Real Estate Developer Insurance: Cost & Quotes From $38/mo

Table of contents
1. General Liability Insurance for Real Estate Developers1.1. Coverage Limits of General Liability Insurance for Real Estate Developers1.2. Add-Ons to General Liability Insurance for Real Estate Developers2. Professional Liability Insurance for Real Estate Developers2.1. Coverage Limits of Real Estate Developers Errors and Omissions Insurance3. Commercial Property Insurance for Real Estate Developers3.1. Coverage Limits of Commercial Property Insurance for Real Estate Developers3.2. Add-Ons to Commercial Property Insurance for Real Estate Developers4. Business Owner’s Policy for Real Estate Developers4.1. Add-Ons to Business Owner’s Policy for Real Estate Developers5. Tools and Equipment Insurance for Real Estate Developers5.1. Coverage Limits of This Insurance for Real Estate Developers5.2. Add-Ons to Tools and Equipment Insurance for Real Estate Developers6. Commercial Auto Insurance for Real Estate Developers6.1. Coverage Limits of This Insurance for Real Estate Developers6.2. Add-Ons to Commercial Auto Insurance for Real Estate Developers7. Workers Compensation Insurance for Real Estate Developers7.1. Coverage Limits of This Insurance for Real Estate Developers7.2. Add-Ons to Workers Comp Insurance for Real Estate Developers8. Real Estate Developer Insurance Cost9. Best Real Estate Developer Insurance Companies9.1. NEXT Real Estate Developer Insurance 9.1.1. Pros9.1.2. Cons9.2. The Hartford Real Estate Developer Insurance 9.2.1. Pros9.2.2. Cons9.3. CoverWallet Real Estate Developer Insurance 9.3.1. Pros9.3.2. Cons9.4. Tivly Real Estate Developer Insurance 9.4.1. Pros9.4.2. Cons9.5. Thimble Real Estate Developer Insurance 9.5.1. Pros9.5.2. Cons9.6. Hiscox Real Estate Developer Insurance 9.6.1. Pros9.6.2. Cons

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.



General Liability Insurance for Real Estate Developers


CoverWalletNEXT (Best)ThimbleHiscoxThe 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?YesNoIncludedCan be includedNo
Hired/non-owned auto liability coverage included?YesNoNoCan be includedCan be included
Equipment breakdown floater included?NoYesYesCan be includedCan be included
Can you get a certificate of insurance online?YesYesYesYesYes
Name additional insureds?YesYes
YesYesYes
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.


Coverage Limits of General Liability Insurance for Real Estate Developers

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.


Add-Ons to General Liability Insurance for Real Estate Developers

  • 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


Professional Liability Insurance for Real Estate Developers


CoverWalletNEXTThimble (Best)HiscoxThe 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?YesYesYesYesYes
Waiver of subrogation included?YesNoYesCan be includedNo


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.


Coverage Limits of Real Estate Developers Errors and Omissions Insurance

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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Commercial Property Insurance for Real Estate Developers


CoverWalletNEXT (Best)ThimbleHiscoxThe 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 signsExcluded$2,500ExcludedExcludedExcluded
Accounts receivableExcludedExcluded$5,000/10,000IncludedExcluded
Money and securitiesExcluded$2,500$1,000IncludedExcluded
Lock and keysExcluded$2,500ExcludedExcludedExcluded
Business interruption floaterExcludedIncludedIncludedIncludedExcluded
Equipment breakdown floaterExcludedIncludedExcludedExcludedExcluded
Inland marine insurance floaterExcludedExcluded$10,000ExcludedExcluded
Employee dishonesty floaterExcluded$5,000$2,500IncludedExcluded


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.


Coverage Limits of Commercial Property Insurance for Real Estate Developers

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.


Add-Ons to Commercial Property Insurance for Real Estate Developers

  • 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




Business Owner’s Policy for Real Estate Developers


CoverWalletThimble (Best)NEXTHiscoxThe 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?YesYesYesYesYes
Name additional insureds for free?YesYesYesYesYes
BOP discount?YesYesYesYesYes


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.


Add-Ons to Business Owner’s Policy for Real Estate Developers

  • 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


Tools and Equipment Insurance for Real Estate Developers


NEXTThimbleHiscoxThe 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/$5,000NoYes
Miscellaneous equipment also covered?$5,000/$10,000NoYesYes
Offered as an endorsement to general liability insurance?YesYesYesYes
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.


Coverage Limits of This Insurance for Real Estate Developers

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.


Add-Ons to Tools and Equipment Insurance for Real Estate Developers

  • 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 for Real Estate Developers

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


Coverage Limits of This Insurance for Real Estate Developers

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.


Add-Ons to Commercial Auto Insurance for Real Estate Developers

  • 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


Workers Compensation Insurance for Real Estate Developers

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.


Coverage Limits of This Insurance for Real Estate Developers

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.


Add-Ons to Workers Comp Insurance for Real Estate Developers

  • 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

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Real Estate Developer Insurance Cost


Cost per MonthCost per YearDeductible
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 MonthCost per YearBest for
NEXT$22$264Best overall; Fastest general liability insurance for real estate developers
The Hartford$24$288Workers compensation insurance for real estate developers
CoverWallet$27$324Comparing real estate developer insurance quotes online
Tivly$30$360Comparing real estate developer insurance quotes over the phone
Thimble$32$384On-demand coverage for real estate developers
Hiscox$34$408Real estate developers who primarily provide their professional services to their clients

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Best Real Estate Developer Insurance Companies

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. 


NEXT Real Estate Developer Insurance

Pros

  • 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 

Cons

  • 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


The Hartford Real Estate Developer Insurance

Pros

  • 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

Cons

  • 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


CoverWallet Real Estate Developer Insurance

Pros

  • 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

Cons

  • 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


Tivly Real Estate Developer Insurance

Pros

  • Fast and straightforward quotation process

  • Competitively priced premium rates

  • Compare quotes over the phone 

Cons

  • 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


Thimble Real Estate Developer Insurance

Pros

  • Offers monthly, hourly, and day-long premium rates

  • Provision of instant, reliable quotes

  • You can purchase its real estate insurance through its mobile app

Cons

  • 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


Hiscox Real Estate Developer Insurance

Pros

  • 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

Cons

  • 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


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