As a builder it is required that you hold two types of insurance:
- Workers Compensation
- Liability Insurance
The yearly price of these insurance policies is dependent on 2 factors:
- How many homes a year you are building
- What percentage of the work is done by sub-contractors and how much is done by employees.
The higher percentage done by sub-contractors the higher your yearly policy costs, because Insurance agent have to presume your sub-contractors don’t have these types of insurance policies on their own. And if something happens during the construction process on one of your sites while you don’t have these types of insurance policies, the sub-contractor can come after your personal assets. The approximate price it will cost for both these insurance policies for me this year is going to be about 8 - 10K.
