Construction insurance is basically a fee or premium that you pay so that you’re protected from any potential liabilities. Construction insurance is also known as course of construction, builder’s risk insurance, etc. If there are any damages or repairs that need to be done, this insurance policy pays for it. This will ensure that you can make a profit from your construction project as opposed to losing money according to advantage construction insurance.
Building contractors are always expected to have construction insurance and a certificate to show it.
Why is construction insurance needed?
During the course of building, you may experience the following:
- Damage to property: This can include the actual property or the equipment that you’re using. Some examples include flooding due to intense rain or storms, power outages, damage to the roof, trees falling, etc.
- Loss of income: This can occur due to a lot of workers, theft, or even acts of vandalism.
- Injuries to workers: Sickness, injuries caused while on the job, or even death.
- Liability claims: These include any types of property damage or injuries to persons who are not related to your project or organization. A good example of this is a passerby who gets injured by accident at the site.
- The main benefit of insurance is that it helps to protect you from these potential situations and protects you against loss.
Who should get construction insurance?
Besides property developers and builders, some other persons and entities would require construction insurance. They are as follows:
- General contractors: These are people who are responsible for managing the development of a project.
- Contractors (heavy): These workers focus on building railroads, highways, bridges, streets, and more.
- Contractors (specialized): These include persons such as electricians, painters, glaziers, carpenters, etc.
- Companies based on home improvement
- Typical construction insurance
Business liability insurance helps to protect against the most common types of damage and injuries. Do note that this not only covers employees but also damage to property and injuries to non-employees. It can include property damage to the property on the site as well as other properties elsewhere. It is also meant to cover any legal costs and medical expenses.
When it comes to general liability insurance, this is mainly about insurance for people and buildings that are not within your organization. With that said, it doesn’t deal with punitive damages, automobile accidents, harm or injury done intentionally, etc.
- Construction insurance (optional)
- According to what you require, you should think about adding the following coverage to your particular policy:
This policy in particular is provided by general liability insurance so that any additional expenses are covered. It can include coverage for accidental death. This type of coverage isn’t provided within a typical general liability policy.
In the event that you want to undergo a risky or large project, then you should definitely think carefully and get this type of policy. It would provide you with a lot of coverage while also giving a lot of value for your money. Do keep in mind that in order to qualify, you will require many basic policies. Some of these include auto insurance, worker’s compensation, and general liability.
Umbrella liability unfortunately doesn’t cover any injury or damage that you may personally sustain. It also doesn’t cover any criminal acts or even damage to your personal property.
Professional liability coverage
This type of insurance covers any damages due to negligence or poor workmanship. It usually handles anything that isn’t covered by your general liability insurance.
Professional liability insurance coverage handles expenses due to damages, legal expenses, lawyer fees, etc.
Contractors pollution coverage
There are three levels of hazards and contractor’s pollution coverage exists to cover them. A good example where this type of coverage would be needed is if a construction worker gets sick due to the presence of mold or bacteria on the site.
This type of policy would also cover harm due to naturally occurring hazardous substances. These substances include pyrite, asbestos, arsenic, mercury, etc.
Extra expense insurance
This type of insurance is meant for when repairs are being carried out on your construction site so you need to move your business to another location.
This particular coverage pays for extra expenses that exceed the typical cost of the project. It is essentially for anything that you have to pay for due to adverse conditions or situations.