facebook pixel
Call now 866-225-1950 Call now 888-819-1228 Call now 855-340-1099 Call now 833-234-8928 Get Quote >

Construction company insurance is a term that applies to the various types of insurance that protect contractors in the course of your work. Not all policies offer coverage for all risks. In fact, different policies focus on specific risks. It is advisable for contractors to bundle a number of policies into a construction company insurance program.


How to protect your tools


Let’s look at which policies protect your construction tools. As a point of reference, we’ll also look at another policy that does not protect your tools. This way you’ll know what to ask for when you speak with your insurance consultants.


The 3 policies we’ll look at are:

  • Builder’s Risk Insurance
  • Inland Marine Insurance
  • Contractor Liability Insurance


Builder’s Risk Insurance:


Generally, Builder’s Risk Insurance policies offer coverage for damages caused by fire, weather, and vandalism. Yours can also provide theft protection for your tools and equipment while they’re on the job site, in storage off-site, or in transit.


So you’re probably asking yourself, why don’t I have this policy already? Builder’s Risk is Course of Construction insurance because it is project-based. This means that you will invest in coverage for a specific project. When the project is complete, tthe coverage ends.  In other words, Builder’s Risk does not protect your tools for longer than the project duration.


To protect your tools on a day-to-day basis, you should invest in Inland Marine Insurance – we’ll look into this next. Whilst both Builder’s Risk and Inland Marine protect your tools, Builder’s Risk offers value that Inland Marine does not.


The real benefits of Builder’s Risk Insurance are property replacement and reimbursement of profits lost.


Inland Marine Insurance


Inland Marine goes wherever you go. Cover your tools for all your projects, not just one.  This includes theft from the building site or in transit. This is very important when you work on several sites.


Every Builder’s Risk Insurance policy is different because every project is different. Protection for tools, equipment and building materials varies from policy to policy. It should be double-checked.


Contractors Liability Insurance


Liability insurance gives coverage against third party claims. In other words, it pays out when somebody else sues you for damages. This does not protect your tools and equipment. As, if these get stolen or damaged the financial loss is not theirs.


Let’s take a look at some of the damages your liability insurance will cover:


  • Property damage: should you or your employees damage someone else’s property. For instance, the neighbor’s garden furniture or your client’s vehicle parked on the street.
  • Bodily injury: should someone other than yourself or your employees be injured on your work site or as a result of your work. For example: a visitor to the site is hit by falling building material.


Contractors Liability Insurance is very important for builders. In fact, it is mandated by law in most states. But, as said, it does not provide coverage for your tools and equipment.


Construction Company Insurance


Get professional advice about which policies should be included in your Construction Company Insurance program. We are happy to assist. Speak with the consultants at Contractors Liability on 866-225-1950