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Construction Insurance Vs. Contractor’s Insurance

siadmin December 6, 2018 Insurance

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

Many people who work in the construction industry are independent contractors. Working independently allows you to set your own schedule, but you will need contractor insurance as well. This type of insurance protects you from liability that could happen on the job.

Let’s learn more about construction insurance and 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.
  • Umbrella liability. An umbrella policy supplements a CGL policy. It is best for large contractors that need extra protection.
  • Professional liability. Professional liability protects the design professional. 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 in the Gaps with Contractor Insurance

Contractor insurance is a type of construction insurance required for contractors and subcontractors. This insurance protects against injuries, accidents and property damage that a contractor might suffer on the job. Most jobs, especially government jobs, require liability insurance before starting the project.

Contractor insurance protects against the following:

  • Injury claims. A contractor insurance policy may cover medical expenses and court-awarded compensations. If death occurs, funeral expenses may be paid as well.
  • Damage claims. Contractor coverage provides protection for any damage that is incurred on the property.
  • Product claims. If equipment used or installed by the construction company causes damage, a liability policy can help pay for the damages.
  • Copyright claims. Contractors who design a productthat is similar to a competitor’s can be sued for copyright infringement. Contractor insurance may pay the legal fines.

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.