Builders nowadays need to acquire a significant amount of protection in terms of insurance before breaking ground on projects. As with any construction efforts, danger is present, and the risk of you or one of your employees getting injured is constantly a factor. Without sufficient protection, you may encounter significant fines or legal consequences should a claim be filed against you. With the inherit riskiness of most construction projects however, there are several types of commercial construction insurance policies builders need, continue reading this post to learn more about them.
Builders Risk Policies
One traditional commercial construction policy is builders risk coverage. Builders risk is sometimes referred to as Course of Construction, or COC insurance. These are unique packages designed to protect you from ‘named perils.’ The perils that qualify vary based on specific policies or providers, however most packages cover property foundation, building materials, and temporary structures. COC protection is essential if projects you are working on are damaged due to vandalism, fires, or vandalism. If you need to equip yourself with the proper insurance, ensure you obtain a builders risk policy to secure your construction company site.
Pollution Protection For Contractors
Many construction projects require the usage of hazardous materials, these projects require reliable pollution protection. Construction projects require explosive materials to demolish structures, utilize dangerous supplies, and omit pollution into the air. Most projects require some form of HVAC, industrial, and pipeline construction, all which has negative environmental impacts. Even worse, working with these materials has a higher tendency to cause injuries on the job. The best packages protect you against third-party claims from property damage or bodily injury directly caused from dangerous waster materials. Some policies even protect completed structures from hazardous waste claims after jobs are completed.
Commercial General Liability Coverage
Every builder needs some form of commercial general liability coverage. This is often the most basic form of construction insurance coverage offered to contractors. Policies are created to protect you against any bodily injury or property damages claims brought against you by third-parties. Mistakes in construction can be extremely costly to repair on your own. If an employee accidentally misuses a piece of equipment and destroys part of a building, general liability coverage will reimburse expenses. This saves you from having to pay out of pocket and focus on completing projects. In many cases, states require you to carry some form of commercial liability coverage. Luckily, you can obtain packages on their own, or as part of a business owners policy. Before you begin projects, you need some degree of commercial general liability coverage.
Surety bonds are a unique form of coverage available to builders. They are not sold as traditional policies or offered by many commercial insurance brokers. However, these bonds provide a unique layer of protection to all commercial builders. These policies protect you in the event that you are not able to complete a job. If you run out of working capital needed to complete a job, surety bonds can help you acquire the needed funds. Thus, many construction companies eventually require these packages to purchase new equipment, specialized tools, or outsource services when they are low on operational capital. To protect your ability to complete projects at hand you should consider purchasing surety bonds.
Business Asset Protection
You also need coverage to secure your various business assets. Unlike many other businesses, construction assets are extremely expensive. Pieces of equipment like cement mixers, bulldozers, cranes, and excavators are extremely expensive to repair or replace. Even less expensive assets like computers, sensors, and generators can seriously derail operations if they are damaged. Some assets you use can easily be broken, lost, damaged, or stolen. For that reason, you need to have adequate protection over the business assets that are pertinent to project completion. Consider purchasing business asset protection for your construction company.
Before builders can break ground on projects, you need to guarantee you have sufficient commercial protection. The most common coverage element for construction companies is builders risk policies. Other packages protect you from pollution liability. Consider commercial packages that provide general liability coverage. Other policies are sold through surety bonds to guarantee your project completion. Furthermore, consider business asset protection to secure any expensive equipment or vehicles you need for operations. If you are interested in the essential types of commercial construction insurance policies builders need, consider the points mentioned above.