In the construction industry, several individuals such as contractors and workers come together to deliver a certain product for their client. It can be that the product is a new or repaired building structure or a new roadway or walkway for vehicles or pedestrians respectively. During the entire construction process, there may be numerous risks and hazards involved, such that getting insurance will offer certain protection against these risks. In line with this, below are some of the insurance policies that every construction business should have.
Builders Risk (Course of Construction) Insurance
One of the insurance policies that a construction business should look into is the builders’ risk insurance, which is also referred to as the course of construction (COC) insurance. This policy covers the buildings and structures being built or repaired in case of fire, unbearable weather conditions, as well as vandalism. This typically encompasses building materials, foundations, scaffolding, and even fencing or outdoor fixtures.
Inland Marine Insurance
Another insurance policy that is worth looking into is the inland marine insurance that covers different types of properties used in the construction industry, including heavy equipment.
According to Balsiger Insurance, it is important to ensure these assets, particularly those that are used frequently, to circumvent any financial troubles in case the equipment is damaged and needs to be replaced. Even leased or borrowed equipment, as well as computer equipment and data, can be covered under this policy. This policy also covers the expenses incurred from a piece of equipment being stolen from the site or equipment damaged because of natural disasters.
Commercial and Contractor General Liability Insurance
This insurance policy is more commonly known as the CGL insurance that provides coverage in case of bodily harm and injuries incurred on the site or throughout the project. It also includes coverage for damages caused by faulty workmanship. Nevertheless, the specific conditions included in this policy can vary from one provider to another, catering to the specific needs of the construction business.
Commercial Auto Insurance
Finally, there is also the commercial auto insurance that is not limited to the construction industry but business leveraging vehicles in their enterprise. More often than not, the standard coverage includes liability which protects the company from the expenses brought about by accidents caused by their workers. It also includes physical damage coverage, as well as medical payments coverage, which is still related to the unfortunate mishaps resulting from accidents. In the construction industry, this can be beneficial since they employ various trucks like cement mixers, dump trucks, or trailers which can also be caught in an accident.
To wrap things up, some of the insurance policies that a construction business should have included the builders’ risk, inland marine, commercial, and contractor general liability, as well as commercial auto insurance. There are other policies that are worth looking into, such as contractor license bonds and construction bonds, as well as workers’ compensation insurance. All these are geared towards providing a certain degree of protection in case of unfortunate circumstances that may arise in your construction business.
