Introduction to Construction Insurance
Construction is a fast-growing, constantly evolving industry. Contractors and companies must always look out for their employees to ensure that operations run smoothly and everything turns out perfectly.
Factors That Determine Construction Insurance Needs
The type of construction insurance required by a project or business depends on several elements. These include the role of the individual in the project (e.g., contractor, property owner, or subcontractor), whether the policyholder is an individual or business, and the type of property involved. Insurance providers often combine different policies into trade-specific packages, such as specialized insurance for electricians, plumbers, and other skilled professionals. The following sections break down the most common types of insurance policies found in the construction industry.
Builders’ Risk Insurance vs. General Liability Insurance
Builders’ Risk Insurance protects buildings and structures that are under construction or renovation. It also covers building materials and equipment used in construction projects. Construction site equipment and its value are hard to recover in the event of a loss, so business owners need to have it. On the other hand, General Liability protects owners against claims of property damage and bodily injuries, and the policy can extend to anywhere the construction project takes you, and it ends once it’s done. Also, helps cover medical expenses and attorney fees for which your company may be legally responsible.
Comprehensive Protection for Your Business
It’s important to remember that builder’s risk insurance only protects the job site and materials during the project. It ends once construction is complete. General liability insurance, on the other hand, protects contractors and remains in effect year-round. Together, these policies provide comprehensive protection and help shield your construction business from costly liability claims.
Get the right policy for your construction business. Talk to an expert now.
In summary, Builder’s Risk Insurance and General Liability Insurance serve different, yet equally important, purposes. While builder’s risk insurance focuses on protecting the project site and materials during construction, general liability insurance provides broader protection for contractors against claims that can arise at any time during the year. Together, these policies provide a robust safety net, safeguarding both your work and your business. Selecting the appropriate coverage mix ensures peace of mind, streamlined operations, and safeguards against costly setbacks.
