What Kind of Insurance Do I Need for a Custom Home Builder Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Dec 3, 2025
- 2 min read
Running a custom home builder business involves significant financial risk. From construction accidents to property damage, a single incident can have a major impact on your business. That’s why having the right insurance coverage is essential for protecting your assets, employees, and profits.
In this guide, we’ll break down the types of insurance every custom home builder should consider.
Why it’s important: Covers bodily injury, property damage, or personal injury claims arising from your construction projects.
Protects against lawsuits from accidents on-site
Often required by clients before starting a project
Covers legal defense costs
Why it’s important: Protects homes and materials under construction from damage or loss caused by:
Fire
Theft
Vandalism
Severe weather
This coverage is especially critical for high-value custom home projects.
Why it’s important: Covers your business property, including:
Offices and storage facilities
Tools, equipment, and machinery
Computers and office furniture
Property insurance protects you from losses that could disrupt your operations.
Why it’s important: Protects specialized construction equipment and tools against:
Theft
Damage during transport or use
Mechanical breakdown
💡 Tip: Combine property and equipment insurance to ensure all physical assets are covered.
Why it’s important: Required if you have employees. Covers:
Medical expenses for job-related injuries
Lost wages for injured employees
Legal defense in case of employee lawsuits
Workers’ compensation helps protect your business from financial liability while keeping your team safe.
Why it’s important: Covers vehicles used for business purposes, including:
Transporting materials or equipment
Visiting job sites
Client meetings
This insurance ensures your vehicles and drivers are protected in case of accidents.
Why it’s important: Provides additional liability coverage above your standard policies, offering extra protection against major claims or lawsuits.
Why Choosing the Right Insurance Matters
Having comprehensive coverage does more than protect your assets — it also builds trust with clients. Many clients prefer builders who are fully insured, as it demonstrates professionalism and responsibility.
At Wexford Insurance, we specialize in custom home builder insurance, helping businesses.
Final Thoughts
Insurance is not optional for custom home builders — it’s a crucial investment in your business’s longevity and reputation. By securing the right mix of coverage, you protect your projects, employees, equipment, and profits, giving you peace of mind to focus on growing your business.
📌 Protect your business with Wexford Insurance
Contact us today.