Construction Insurance & Contractor’s Insurance Rundown

If you work in the construction industry, you already know that construction insurance is required for most projects. Construction insurance provides coverage for accidents, materials, employees, natural disasters and other risks. In order to participate in the bidding process, you must have proof of coverage.

Many businesses working in the construction industry are independent contractors and subcontractors. Even if you work as a subcontractor you will need insurance to protect you from liability and a variety of things that could happen on the job.

Let’s learn more about contractor insurance and who needs this type of coverage.

Common Types of Construction Insurance

Construction insurance is a broad term used to describe the coverage types that are required to complete building jobs. The type of insurance needed depends on the risks associated with the project and the potential losses.

Below are the most common types of construction insurance.

-Commercial general liability. A commercial general liability policy, or CGL, is the most common type of construction insurance. A standard policy covers liability related to bodily injury and property damage.  Most jobs, especially commercial and government jobs, require liability insurance before starting the project.

-Workers’ Compensation. Workers Compensation covers injuries to employees and helps to protect you from employees taking action against you when they are injured.

-Contractors Equipment.  covers your tools and equipment while on the job, in transit, etc.

-Umbrella liability. An umbrella policy supplements a CGL and  Business Auto policy. It is best for large contractors that need extra protection.

-Builder’s risk. A builder’s risk policy protects construction companies from certain perils that may happen during construction, such as fire, lightning, hail and vandalism.

-Professional liability (Contractors E&O). Professional liability traditionally protects the design professional, but it is becoming more common for contractors because of their design-build workloads.

-Contractor’s pollution coverage. A pollution policy covers claims for bodily injury and property damage caused to a third party. It’s ideal for those in HVAC, demolition, mechanical and infrastructure industries.

Fill Gaps and Get the best “bang for your buck” with a Contractor Insurance Package

A Contractor insurance package is a type of construction insurance bundle designed for small to mid-size contractors and subcontractors. It most often combines commercial general liability coverage with coverage for property and tools.  This insurance protects against many injuries, accidents and property damage that a contractor might suffer on the job.

Contractor insurance packages can often go beyond typical policies and protect against gaps that exist in typical policies Some examples include the following:

-Property Damage claims. Typical General Liability policies do not cover you when you damage something you’re working on or installing.  This coverage can be provided by a contractor package policy.  This is sometimes called “Broad Form Property Damage”

-Blanket Additional Insured.  When required by a written contract or agreement, this endorsement gives you the ability to satisfy insurance requirements without listing each one (and being charged each time).

-Inland Marine / Installation & Transportation. This can cover you in case there is damage to property you are installing while it is being transported or at the jobsite before it is installed.

No matter how large or small a job is, it’s important to be fully protected before placing a bid. Construction is an extremely demanding profession, and having the right insurance coverage protects you, your assets and your company. To learn more about construction insurance, contractor insurance and any other policies that can make your job safer, contact Soden Insurance today.