Construction is a risky endeavor, and the construction industry has a higher injury rate than most other industries in the United States. If an accident occurs during your construction project, it is critical that your hired contractor is insured, else you will have to bear the cost. This means that construction insurance can be critical for protecting your investment. There are many different types of construction insurance available, so – as a property owner or manager – you should be familiar with them.
In this blog post, we will discuss some common types of construction insurance policies and their features.
Builder’s Risk Insurance
This policy covers the contractor for damages caused by fire or natural disasters on-site during construction hours only. If you cover up your project with tarps when work stops at night, then this construction insurance policy will not cover the loss of equipment or damage done to your construction site.
Workers’ Compensation Insurance
This type of construction insurance covers construction workers in case they are injured on the job, no matter whose fault it is. This can be a great way to protect yourself from lawsuits and legal fees if an accident occurs during work hours on your project site.
Contractors’ All Risk Insurance
This type of insurance covers both workmanship and materials if something happens while the project is being built (such as a fire). It also offers coverage from general property damage like vandalism or theft when someone breaks into the job site and steals equipment or tools that aren’t bolted down.
General Liability Insurance
General construction liability insurance protects a construction company against the financial responsibility for bodily injury or property damage that occurs during construction. In general, construction companies are required to carry this type of coverage when working in certain states and municipalities, like California. It is also helpful to know about general liability insurance if you own your own construction business.
Professional Liability Insurance
Professional liability insurance is a type of construction insurance that protects you from any claims arising out of your professional services. This can include negligent construction or building practices and property damage. It’s also known as errors and omissions (E&O) coverage. As with all construction insurance policies, construction companies are typically required to have it.
Pollution Liability Insurance
This covers the cost of cleaning up environmental damage, which can be extremely costly and time-consuming. Construction companies need to have this coverage if they are operating on construction sites where there is potential for causing pollution or where there’s a possibility they could be responsible for clean-up costs. Pollution liability claims can arise from situations like spills and leaking storage tanks.
Voshall Construction is a commercial and residential construction company in Brentwood that has been in business for more than 30 years. With a fully insured staff and high-quality materials used during every residential and commercial construction project we undertake; you can rest assured your new building will be built with care by an expert team that knows what they are doing. Schedule a free consultation!