Common Construction Insurance Types

Construction Insurance Company 

The construction industry is one of the highest risk industries for accidents and injuries. Construction insurance is an essential part of owning a construction company, or managing a job site.

What are the most Common Insurances Construction Contractors Must Have?

Every construction project must get specific construction insurance before commencing the project. Usually the common construction insurances can provide coverage of materials, risks, employees and natural disasters. Although these are the basic insurance coverage needed to commence with building there are always some specific coverage needs for each individual job to provide protection from accidents and potential fatal situations. Many times, the property owner or builder are required to have some construction insurance before even bidding on a project. Here are some of the common insurance that a construction contractor must have.

  • Contractor Liability Insurance:

This type of insurance provides complete insurance coverage that can protect from accidents, injuries, property damages, mishandling of materials and tools by workers during the construction process.

  • Workers’ Compensation Insurance:

Construction can prove to be high risk-based industry as workers have to work with heavy equipment and power tools that can prove to be dangerous if not maintained or handled correctly. In such a high-risk situation worker’s compensation insurance provides complete coverage for the workers’ medical bills, lost wages and any other expenses that a contractor might need to pay due to an employee or workers injury.

  • Commercial Automotive Insurance:

Construction vehicles are mostly heavy duty, large trucks, cranes and other heavy automotive equipment or construction devices. You need to have a commercial automotive insurance policy to cover each automotive used on and for your job-site.

Surety Bonds:

Although the surety bonds cannot be called a complete insurance policy they provide financial protection that is highly recommended.

Why Do You Need A Bid Bond?

If the construction bond obligations are not fulfilled, you need to have a bid bond. There are many penalties that are applicable in the case of failure to oblige to bond obligations.

Do you Need A Personal Liability Bond?

The personal liability insurance bond usually covers the errors and mistakes done by the contractor while performing his duties under some specified agreement. This can save you from unnecessary stress of errors and troubles that may come your way during the completion of the project. Your litigation expenses will be covered by this insurance if you fail to handle the project as it was decided. If your actions resulted in the loss of clients’ investment or you had some errors in performing your contractors duty completely this insurance will cover you.

By |2018-07-23T15:00:13+00:00July 23rd, 2018|Uncategorized|