Construction insurance can be extremely important when you could potentially be looking at a large amount of liability.
Construction insurance is something that you can get if you are worried about unwanted visitors who may be hanging around close to your construction site.
You don't want them to do long term damage, or short term damage to your construction project for that matter.
Must Meet Any Local or State Requirements
You want to be able to meet the requirements that the local or state government may require for construction a building in a certain location.
Your construction site could be shut down if you don't carry the right construction insurance to protect your company, your employees, and the company for whom you are working to build a new location.
Construction Insurance
Construction insurance is something that can put restrictions on a company's ability to build any type of commercial building.
That is, the limited cost-exposure to damage or destruction can become a limiting factor in what type of structure you want to design for your company.
Additionally, construction insurance premiums may also be much higher than normal business insurance rates due to an increase in risk exposure.
Therefore, it's important that the owner do some research into construction insurance policies before signing any contracts with a construction company.
What Are Additional Coverage Options?
When looking for construction insurance, you have to look at what additional coverage options are available within your policy.
For example, an Option C may only cover damage due to fire and vandalism while an Option A will include everything except earthquakes.
Additionally, some of these policies give you the option of adding on tenant improvements to cover any type of loss on the structure you're building.
What Are The Different Types of Construction Insurance Policies?
The different types of construction insurance policies that can be found on the market today include:
- All Risks – Contractual Liability Insurance – A policy that covers all risks not specifically excluded from coverage under a standard form of contract at the time the insurer is notified in writing of the work.
- All Risks – Products and Completed Operations – A policy that covers all risks not specifically excluded from coverage under a standard product liability insurance. This includes consequential damages such as loss of earnings due to property damage, loss of homemaking services or injury to the occupant caused by defective construction materials or equipment used on your site.
- All Risks – Completed Operations and Product Liability Insurance – A policy that covers all risks not specifically excluded from coverage under a standard product liability insurance. This includes consequential damages such as loss of earnings due to property damage, loss of homemaking services or injury to the occupant caused by defective construction materials or equipment used on your site.
- All Risks – Contractual Liability Insurance and Completed Operations – A construction insurance policy that covers all risks not specifically excluded from coverage under a standard contract clause. This is typically known as an "all risk" policy, since it covers all risks except those specifically excluded from coverage under the form of contract used at the time the insurer was notified in writing of the work.
In Summary
Always make sure that your commercial projects are properly protected with construction insurance to make your project safe and sure to finish on time?