American Builders Insurance Review

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Contributor, Benzinga
August 11, 2022
American Builders Insurance via Simply Business
securely through American Builders Insurance via Simply Business's website

American Builders Insurance Company (ABIC) is an insurance business focused on providing contractors insurance. It offers a range of coverage options for contractors from construction managers to artisans undertaking commercial or residential work. As a risk retention group (RRG), ABIC’s members are its owners. American Builders Insurance Company may be best suited for smaller artisan contractors and general contractors. However, its policy aggregate limits max out at $2 million, which might be too low for some contractors with larger teams and those who work on more expensive projects and is available through Simply Business.

Best For
  • General contractors
  • Artisan contractors
  • Those with lapses in coverage
  • Paper contractors managing subcontractors
  • Variety of coverage
  • Helps finance coverage
  • Policies cover 100% of paper contractors
  • Not available in all states
  • Aggregate limits may not be enough for every business

American Builders Insurance via Simply Business Ratings at a Glance

American Builders Insurance Product Offering
American Builders Customer Service
Americna Builders User Benefits
American Builders User Experience
American Builders Overall Rating

American Builders Insurance Product Offering

American Builders Insurance Company's product offering earns a 4.5-star rating because of the variety in coverage selections, the financing options available and the company’s competitive rates. It offers coverage to a range of contractors and builders, which means that ABIC can be a viable choice for a range of business owners. It falls just short of five stars because it does not provide coverage in some states, and aggregate limits may not be high enough for larger contractors. 

Who is eligible to join the American Builders Insurance program? The company focuses on providing contractors insurance for individuals and partnerships that provide specialized professional services. Roofers, electricians, landscapers, carpenters, tree trimmers, plumbers and construction managers are a few eligible classes listed on the website. ABIC has no trouble insuring business owners who operate in areas with more risk of injury or claims. Eligible risks include new ventures, lapses in coverage, no prior coverage, 100% paper contractors and artisan contractors who provide high-priced, individualized services. 

The types of coverage offered by ABIC are diverse and include occurrence coverage, coverage for work done by subcontractors, primary non-contributory insurance and CG 2037 upon referral. Occurrence coverage provides coverage for incidents that occur during a policy term not based on the time that a claim is filed. Particularly important in construction insurance policies, coverage for general contractors for work done by subcontractors is also available. 

As many general contractors outsource work, especially 100% paper contractors, they should protect themselves through policies including this type of coverage. Blanket AI coverage, short for “blanket additional insured endorsement,” allows unnamed parties to have coverage extended to them without being specifically named. General contractors who may interchange subcontractors depending on the job would find this type of coverage beneficial. 

ABIC also delivers the option of a waiver of subrogation (WOS). A WOS allows the insured to insert a provision where they take away the right of their insurance carrier to sue a contractual third party to recover funds paid to the insured or another party resulting from a covered claim. GC 2037 is available upon referral and provides additional coverage for injury or damage after work is completed. This protection benefits those in the construction industry, giving coverage should incidents arise because of their work after the construction is finished. Although this coverage may seem like a no-brainer to implement, it can be difficult to obtain. Some other highlights of ABIC are its competitive premiums and rates, commission options and financing availability. 

ABIC states that its policies include aggregate limits of $1,000,000 up to $2,000,000. In other words, it may pay up to $2,000,000 for all of the claims filed. While these are substantial numbers, some larger businesses may find them too low and choose to search out insurance providers with higher aggregate limits. It is essential to note that some states are not covered with ABIC. If your business is headquartered in Alaska, Washington, Wisconsin, Virginia, West Virginia, New York or Delaware, you’ll need to select a different business insurance provider for your operation, as ABIC is not licensed to offer coverage in your area. 

American Builders Customer Service

ABIC provides you with a few methods you can use to contact its customer service team, including the following.

  • By phone: Get in contact with ABIC by calling 865-481-7057. Specific customer service phone hours are not currently provided on the company’s website.
  • By email: If you’d prefer to communicate with ABIC via email, send a message to If you’d prefer to submit your message to the company directly, you can fill out a request for contact form on American Builders Insurance Company here.

When it comes to submitting a claim, you have additional options to contact the company, including the following.

  • By phone: To begin your claim by phone, call 866-984-3318. A representative will get in touch with you and guide you on the next steps to submit your documentation. If you’ve never filed an insurance claim before, this option can make ABIC an appealing choice for your business.
  • By fax: Fax documentation related to your claims to ABIC at 855-817-6016.
  • Email: To submit claims documentation by email, send a message to You can also begin the claims process using ABIC’s online form here.  

With multiple options to connect to customer service and begin your claim, ABIC’s claims reporting process is straightforward and simple. 


As is the case with most contracting insurance policies, ABIC bases the price that you’ll pay for coverage on the specifics of how you operate your business. Some of the factors that ABIC will take into account when determining how much you’ll pay for your contractor’s insurance include the following.

  • The size of your business: If you have more contractors under your policy, there is a higher chance that your business will need to file a claim with your insurance company. As the size of your business increases, expect the price of your coverage to also increase.

In addition to the number of clients and employees you have, the average price of your assignments will also influence your insurance cost. If you own a larger business that does more expensive work, your coverage will be more expensive. 

  • The type of industry you work in: The industry you work in and the type of jobs you complete play a major role in the likelihood that you’ll need to file an insurance claim. For example, if you fell trees as a part of your work, you’re much more likely to cause an accident or injury when compared to someone who primarily works fixing appliances. If the nature of your business is particularly hazardous or dangerous, your insurance will be more expensive.
  • The length of time you’ve been in business: If you have a number of years in business and you’ve never filed an insurance claim in the past, you’re statistically less likely to file a claim in the future. If you’re a newer business owner, insurance companies have fewer years of history and work experience to look at when you apply for a policy. This situation forces them to increase the price of your coverage. Over time, the price of your insurance may decrease as you gain more years of experience as an independent operation.

You won’t know exactly how much you’ll pay for your coverage until you consult an American Builder’s Insurance representative. However, the company offers a number of methods you can use to begin learning more about what you can expect to pay for your policy. 

Americna Builders User Benefits

American Builders Insurance Company has a strong team of experts that underwrite each account to help serve the individual needs of each applicant. It maintains valuable connections with other industry specialists to enhance the experience of its members. As an RRG, ABIC is owned by its members. Since the members retain control over the program, they can positively affect the coverage offered, rates, reinsurance options, coverage stability, handling of loss experiences and risk control programs. 

ABIC establishes affordable risk transfer solutions for its members by focusing on strategic alignments with others in the insurance industry. By procuring industry specialists, ABIC is able to create and deliver specialized contractors insurance solutions. The team has numerous strengths, such as underwriting, compliance and claims. With unbundled coverage, members can pick and choose exactly what they need and, as a result, are left with a completely customized solution for their particular situation. 

American Builders User Experience

The American Builders Insurance website is easily navigated and clearly highlights the program's features. It can be contacted through phone, email or online contact form. If a claim is required, you can fill out an online form, call, email, mail or fax a form. There is minimal information online about its starting rates, so you must reach out to the company to find pricing information. 

The website mentions that the company offers instant quoting for new customers. However, this feature is only available during office hours as it is not an automated feature. So it is not as instantaneous as the name implies, and you still need to get in contact with a representative to learn more about what you’ll pay for your coverage based on the unique needs of your business. While this might not be the easiest process when it comes to getting a price, you might prefer this method if you’re the type of business owner who gets a sense of peace of mind knowing that you have plenty of options to connect directly with an insurance professional. 

American Builders Insurance Company vs. Competitors

American Business Insurance provides a number of policy options that can help you protect your contracting business. However, a number of reasons exist why you might want to choose a competing insurance provider. For example, if you live in one of the states where ABIC does not operate or if you need more than $2 million in aggregate policy limits, ABIC’s policies might not be right for you. Thankfully, there are plenty of companies providing contractor and construction insurance policies.

Benzinga offers insights and reviews on the following contractors insurance policy providers. If you’d like to explore insurance options beyond ABIC, consider beginning your search using a few of the links below. 

American Builders Overall Rating

Overall, ABIC provides various customizable options for construction insurance for contractors. As a member-owned RRG with competitive costs, financing availability and options for new ventures and businesses with no prior coverage and lapses in coverage, American Builders Insurance lays out solutions for small contractors. General contractors, especially 100% paper general contractors, may also look to ABIC as coverage for the work of subcontractors. Blanket AI and WOS are available. This construction insurance provider may not be the right fit for everyone since larger businesses may find the aggregate limits of $1,000,000 to $2,000,000 too low, and not all states are covered. 

Frequently Asked Questions


Is contractors insurance expensive?


Contractors insurance is not expensive and ranges in price depending on the size of the business insured. Insurance for individual artisans or tradespeople may only be around $40 per month. Small general contractors or contracting businesses with a few employees may pay closer to $90 per month. As the size of the business grows and you begin to take on more expensive projects, the cost of your insurance coverage will become more expensive.


Do I need insurance for every construction job?


Regulations vary from state to state, but in most states, general liability insurance is typically required to get licensed as a contractor. This means that yes, you will need to have insurance for every construction job that you’re contracted to work on. Besides being legally required, it is also a wise decision to get coverage, as you need to be protected should accidents or damages occur. Without insurance, you bear an enormous financial risk should things not go as smoothly as planned. There are various insurance options, so make sure that you research to choose a plan that suits your needs.

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About Sarah Horvath

Sarah is an expert in the insurance, investing for retirement and cryptocurrency space.