Construction insurance is a type of insurance that helps protect construction professionals and their projects from financial loss. It can help cover repairs or replacement costs if something goes wrong during the construction process. It can also help cover the cost of legal fees if there is a dispute over the construction project.
Construction insurance is not required by law, but it is a good idea to have it if something goes wrong. There are many different types of construction insurance that we will cover in this article, and the coverage can vary depending on the type of policy.
General Liability Insurance
General liability insurance protects your business from third-party claims of bodily injury, property damage, or personal injury. It can also cover the cost of defense in the event that you are sued.
Workers’ Compensation Insurance
Worker’s compensation insurance is required in most states if you have employees. It covers medical expenses and lost wages for employees who are injured on the job.
Builder’s Risk Insurance
This policy covers a wide range of risks, including fire, theft, weather damage, and accidents. Builder’s risk insurance is typically purchased by the builder or developer of a project, and can be used to protect both the builder’s interest and the interest of the owners of the property.
Contractor’s Pollution Liability Insurance
Contractor’s pollution liability insurance is a type of insurance that provides protection for contractors against financial loss resulting from pollution, either during or after construction.
This type of insurance is typically used in conjunction with builder’s risk insurance, and can be used to protect against a wide range of pollution risks, including air pollution, water pollution, and soil contamination.
Wrap-up Liability Insurance
Wrap-up liability insurance is a type of insurance that provides protection for all parties involved in a construction project, including the builder, the contractor, the owner, and the architect. Wrap-up liability insurance can be used to protect against a wide range of risks, including defects in the workmanship, accidents, and injuries.
Professional Liability Insurance
This insurance protects your business from claims of professional negligence. It can cover the cost of defense and damages if you are sued.
Surety Bonds
Surety bonds are a type of insurance that guarantees the completion of a construction project. They are typically required by the government or the owner of the project.
Product Liability Insurance
This insurance protects your business from claims of injury or damage caused by a defective product.
Auto Insurance
If you use vehicles for business purposes, you will need to have auto insurance. This insurance covers the cost of damages caused by your vehicles.
Homeowner’s Insurance
If you work from home, you will need to have homeowner’s insurance. This insurance covers the cost of damages to your home and belongings.
Life Insurance
If you have dependents, you will want to have life insurance. This insurance will provide for your family in the event of your death.
Disability Insurance
If you are unable to work due to an injury or illness, disability insurance will replace a portion of your income.
Conclusion
Construction insurance is an important part of any construction project. It helps protect the construction company and its employees from potential risks and losses that could occur. There are twelve types of construction insurance listed in this article that can be chosen from, depending on the size and scope of the project.
By understanding the different types of construction insurance and the risks associated with construction projects, companies can better protect themselves and their employees from any potential losses or liabilities.
At Pascal Burke Insurance Brokerage Inc, our experienced team of brokers will help you find the right policy for your business, whether it’s property and casualty insurance, general liability insurance in Philadelphia, or any other type of coverage. We’ll also make sure you’re getting the best rates possible. Contact us today to get started!