New construction insurance & workmen's compensation?

[Chris Presnell]

Hi,

After spending some time accumulating rental properties and participating in a successful flip, a partner and I have set out to build a spec home. We have formed the LLC and have all the financing arranged. Our question now is, what kind of insurance do we need to pursue? We understand we need some sort of general liability policy, but we have also been told we might need to carry some sort of policy in case a sub-contractor does not hold insurance on their employees. Anyone have any thoughts on this? Or recommendations of a good provider?

Much of the advice we receive is from insurance salesmen, who of course want to collect those commissions.  We don't want to put ourselves at risk, but we also don't want to overdo it and become insurance poor.  We have had some initial quotes of over $300 per month, which seems exorbitant.  I'd be curious to hear what you pros have to say?  Any advice would be very much appreciated.

Thanks