Construction companies face a unique set of risks. There are so many things that can go wrong—from accidents on the job site to property damage. For this reason, construction companies need to purchase the right insurance cover to protect them from these risks.
Take a look at some commercial business insurance policies your construction company may want.
Builders Risk Insurance
Construction companies have to worry about the standard property and liability risks. They also have to factor in the risks associated with the actual construction process.
Builder's risk insurance cover protects construction companies from property damage and liability risks arising from the construction process. This policy provides coverage for the following:
- Fire damage to the construction site
- Theft of construction materials
Because every construction project is different, these policies can be customized to fit the specific needs of each project. For example, a policy might cover the replacement or repair costs of damaged equipment.
Be sure to talk to your insurance agent about the specific risks associated with your construction projects. That way, you can ensure you have the right coverage should something go wrong.
Professional Liability Insurance
Construction companies often work on tight deadlines. One simple mistake can cost you a lot of money in damages. That's why you need a professional liability insurance policy.
Also known as Errors and Omissions (E&O) insurance, this policy protects you from financial damages should you face a negligence lawsuit. For example, if a subcontractor fails to install a roof properly and your client suffers damages, your company could be liable. A professional liability insurance policy can help cover the cost of legal fees and damages awarded to the plaintiff.
Without this insurance cover, construction companies would be at risk for huge financial losses in the event of a lawsuit. Even if you don't encounter a lawsuit, a professional liability insurance policy gives you peace of mind knowing that you are covered should anything go wrong.
Inland Marine Insurance
Construction companies work on projects that span multiple states. The large geographical area can make it difficult to get adequate coverage from a traditional insurance policy.
You may need an inland marine insurance cover to protect your equipment and materials while in transit. This insurance also covers property that is temporarily stored at a worksite.
Typically, an inland marine insurance policy protects high-value items, such as cranes, excavators, and other large pieces of construction equipment. It can also be used to cover tools, materials, and supplies.
This policy can provide coverage for any third-party property damaged during a project. For instance, if a contractor damages a neighbor's fence while working on your construction project, your inland marine insurance policy may cover the cost of repairs.