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Many contractors are sceptical about construction insurance. Some think that their insurance is just a necessary evil, that it costs too much, or even that they are best without it. This is dangerous thinking in a dangerous industry.

 

At Contractor’s Liability insurance company, we face these small business owner fears every day. This article is intended to shine some light on how construction insurance protects your business.

 

Contractors General Liability Insurance

 

This is the coverage that your insurance company has most likely advised you to begin with. It is mandatory in most states. You are unlikely to be signed-up for construction jobs without this coverage. In fact, you won’t be allowed to step onto big commercial construction sites without this coverage.

 

But this isn’t the only reason to have General Liability coverage in your Contractors Insurance program. This coverage protects you from financial loss from third-party claims. This includes:

 

  • Bodily Injury to a third party, like your client or a visitor to the job site;
  • Property damage to a third-party’s vehicle or building during the course of doing your job;
  • Advertising mistakes when you accidentally use a supplier’s logo without permission

 

Why contractors need more than General Liability Insurance

 

General Liability Insurance does not protect employee injuries. It also doesn’t provide coverage for the replacement costs of damage to the building you are constructing or renovating. Both of these are equally important as Contractors Liability.

 

Worker’s Compensation

 

This is another insurance that is mandated by law. Here you are protected from employee claims for incidents that occur whilst carrying out their duties. This includes:

 

  • Compensation for lost wages
  • Medical benefits
  • Disability benefits
  • Rehabilitation benefits
  • Death
  • Coverage for legal defense

You may think you’ve covered all the bases with General Liability and Workers Comp. But there is another policy that we recommend.

Builder’s Risk Insurance

 

This is coverage specifically designed to protect the structures under construction.  This can be ground-up construction. It can also be a building being remodelled or renovated. For example, it can include coverage for equipment added to the property, like an HVAC system.  Or even, equipment that you are using to complete the job, like scaffolding.

 

Benefits include:

  • Replacement Cost – coverage equal to the value of the property lost
  • Reimbursement for a percentage of profit earned as of the date of the loss
  • Coverage for theft of materials and equipment up to the amount of the policy
  • Coverage for damage caused by vandals

 

Builder’s Risk coverage isn’t a permanent part of your Construction insurance. It is a per project policy. You’ll take out the policy for a specific construction project for the duration of the project. This in commonly between 6 to 12 months, but is easy to extend if the project takes longer than scheduled.

 

Contractors Liability answers your Construction Insurance questions

 

What more should you be doing to protect your business? We hope that this article has answered this question. However, we are just a call away. We’re here to help with any other questions you may have.

 

Call Contractors Liability for a customized quote for complete construction insurance coverage for your contractor business.  We have good relationships with over 15 of the best insurance carriers, so we can get you the best value for your money. Get advice on the best coverage at the best rates. Call Contractors Liability at 866-225-1950.

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