Any construction project will need insurance and it is important that you know what the common types are. Common construction insurance may be required by law depending on where you are. When you know about the types of insurance available for construction, you will be able to plan for what you need.
Commercial General Liability
General liability coverage is the most common type of insurance for construction projects. This will often be referred to as commercial general liability by the insurance provider. This type of insurance will create the base for the insurance coverage that you need and other policies can be added to this.
The standard general liability cover will insure against property damage and bodily injury. It is important to note that this type of insurance will not cover the costs of repairing defective work. However, it will cover the damage caused by the defective work.
Umbrella Liability Coverage
Contractors who work on large construction sites will generally have umbrella liability coverage. This policy will often be a supplement to the general liability cover that they have This is due to the fact that the general liability will have a maximum policy limit which may not cover all of the contractor’s liability. This type of insurance will cover any amount which is not covered by the general liability policy.
Professional Liability Insurance
This is a type of insurance that more and more contractors are looking at. This is due to the fact that more and more contractors are also designing the projects that they work on. In these cases, they will need to assume the responsibility for the design and any liability that this brings.
Professional liability will generally not be covered by general liability insurance. This is why the contractor will have to take out a separate insurance policy for this.
Contractor’s Pollution Coverage
This type of insurance is important for construction because it protects against third-party claims for property damage and bodily injury. As the name suggests, this insurance will also cover the costs associated with any pollution incidents that come from the contractor’s operations. It is important to note that not all construction contractors will have this type of insurance.
Contractor’s pollution coverage is generally held by construction contractors that specialize in certain areas. These areas will include pacing, excavation, grading and tank installation. HVAC installation contractors will generally have this insurance as well.
Builder’s Risk Insurance
Builder’s risk insurance is a very narrow type of insurance. The policy will protect a named individual from named peril during the construction project. Construction contracts will generally state that this type of insurance needs to be taken out by the general contractor. The named individuals will generally be the owner, the general contractor and any sub-contractors.
It is important to note that this type of insurance will cover the actual structure and the materials that will be used. These insurance policies will generally be written in terms of duration and will only cover the specified events. These events will generally include vandalism, fire, theft, wind and other weather-related events. Visit here for more details.