Contractors, Construction, & Builders Risk
As a contractor, you face many risks as part of your job, no matter your trade. Securing comprehensive business insurance for your operations can help mitigate the financial losses from these hazards. If you’re a contractor and need insurance solutions, we are ready to help. Contact Insurance Associates today for more information.
What Types of Insurance Coverages Are Available for Contractors?
Whether you are a general contractor or an artisan contractor, business insurance can provide coverage for several exposures, which can help reduce your out-of-pocket burden. The coverages contractors select vary. Several types of insurance are typically available, including, but not limited to:
- Commercial property insurance—Commercial property insurance protects your business’s physical assets (e.g., your building and its furnishings) if they are damaged by covered perils, such as fires or storms. It may provide repair or replacement costs.
- Builder’s risk insurance—Builder’s risk insurance can provide coverage during a construction project. It may provide coverage if the building under construction, materials or supplies are damaged by a covered cause of loss (e.g., fire). Coverage may apply to property at the job site or temporarily stored off-site.
- Contractor’s tools and equipment insurance—This may pay repair or replacement costs if your portable tools or equipment are damaged, lost or stolen.
- Commercial auto insurance—If your business owns vehicles, commercial auto insurance may provide coverage if they’re damaged or in an accident. Hired and non-owned auto insurance (HNOA) may also be available to cover vehicles your business rents or leases.
- Liability insurance—If your business is held legally responsible for property damage or injuries to third parties, liability insurance may compensate them for their losses. It may also cover the associated legal fees. Several types of liability insurance may be available, including:
- Commercial general liability insurance
- Products liability insurance
- Pollution liability insurance
- Cyber liability insurance
- Completed operations liability insurance
- Professional liability insurance
- Umbrella insurance—If a significant liability claim exceeds the limits of your other liability policies, umbrella insurance may fill in the gap.
- Workers’ compensation—If an employee suffers a work-related injury or illness, workers’ compensation may provide wage replacement or payments for medical expenses.
Additional policies and endorsements may be available. Speak with our team to discuss options, limits and exclusions.
Professionals in the construction industry encounter numerous hazards through their operations. Securing a comprehensive insurance portfolio can help mitigate these risks.
Our agency is ready to help you obtain the commercial insurance your business needs. Contact Insurance Associates today to get started.
What Types of Construction Insurance Are Available?
If you are a carpenter, homebuilding, remodeler, plumber, electrician or another contractor in the construction industry, commercial insurance can provide coverage for several exposures and offer financial assistance if covered causes of loss occur. This can help reduce your out-of-pocket expenses. The coverages construction businesses choose vary, and several types are typically available, including, but not limited to:
- Commercial property insurance—This may provide repair or replacement costs if your business’s property is damaged or destroyed by covered perils, such as fires or storms, or if it is stolen.
- Contractor’s tools and equipment insurance—This may provide coverage if your movable tools or equipment are damaged or lost due to a covered event.
- Business interruption insurance—This may help pay for lost income if a covered peril forces you to shut down your operations temporarily.
- Liability insurance—If your business is held legally responsible for the injuries or property damage to others, liability insurance may compensate them for their losses. It may also cover the associated legal costs (e.g., court fees, settlements and judgments). Several types of liability insurance may be available, including:
- Commercial general liability insurance
- Products liability insurance
- Pollution liability insurance
- Cyber liability insurance
- Completed operations liability insurance
- Professional liability insurance
- Builder’s risk insurance—This may provide coverage during a construction project. It may apply to the building under construction and property at the job site or temporarily stored off-site.
- Commercial auto insurance—This may provide coverage if your business-owned vehicles are damaged or in an accident. Hired and non-owned auto insurance (HNOA) may also provide liability coverage for vehicles your business does not own but utilizes for work purposes.
- Umbrella insurance—This may provide an additional layer of coverage if a liability claim exceeds the limits of your other liability policies.
- Workers’ compensation—This may provide wage replacement or payments for medical expenses if an employee suffers a work-related injury or illness.
Other policies and endorsements may be available. Speak with our agents to discuss options, limits and exclusions.
Builders risk insurance may help provide coverage for buildings under construction. This specialized coverage, also called course of construction insurance, can provide the backbone of your risk management program.
Contact us today to learn more about properly insuring your construction project.
Who Needs Builders Risk Insurance?
Companies and individuals with a financial interest in a construction project often rely on builders risk insurance to help protect structures and buildings under construction. A builders risk policy may help financially protect materials and supplies, equipment in transit or on-site, and the structures being built.
Insured entities may include the following:
- Lenders
- Architects
- Subcontractors
- Property owners
- General contractors
What Coverage Does Builders Risk Insurance Provide?
Builders risk coverage may help protect a construction project from specific types of property damage. It may also help cover certain expenses not directly related to the construction project when property damage causes delays, including the following:
- Real estate taxes
- Additional loan interest
- Lost sales
- Rental income
It’s crucial to consider the risks and exposures of your project at each phase of construction. Depending on your needs, your agent may recommend that you purchase broad protection, or they may customize your policy for specific risks.
Builders risk coverage is typically temporary, so your agent will help you understand when your coverage begins and ends. Your policy may provide coverage until one of the following:
- The policy expires or is canceled.
- The building is put to use.
- The building is occupied.
Typical builders risk insurance policies may include exclusions for wear and tear, mechanical breakdowns, damage due to faulty design, and employee theft. Talk with your agent to understand exactly how your coverage works.