More often than not, construction insurance is necessary for each construction project. This kind of insurance typically offers coverage for natural disasters, risks, material, employees, as well as your company. Here are some of the most common insurances for the construction industry.
- Contractor Liability Insurance Coverage
For protection against injuries, property damage, and accidents suffered on the job, there is a need for a good contractor liability insurance coverage. Also, workers in the construction industry can accidentally damage property by mishandling materials and tools, or while a remodeling process is ongoing.
- Builder’s Risk Insurance
This insurance policy covers the payment if there’s any damage as based on the coverage limit. This limit is a solid representation of a given structure’s entire completed value. In other words, it includes all materials and labor cost, without land value. Coverage for damages resulting from faults such as design, planning, materials, and workmanship are not included.
- Performance Bond
In a situation where the contractor is unable to perform or fails to complete the project according to established and provisions of the contract, the performance bond will help to protect the owner against possible losses. The surety will be responsible for reimbursing the owner for losses in cases where the contractor declares bankruptcy or defaults.
- Payment Bonds and Construction Projects
To ensure all subcontractors, material suppliers, and laborers are paid to leave the project lien free, there is a three-way contract, the payment bond, formed between the owner, the contractor, and the surety.
- Professional Liability Insurance
Professional Liability Insurance covers errors caused by Contractor’s carelessness while carrying out his functions under the specified agreement. If your omissions and errors resulting in loss of client investment or if you do not perform your contractor duties, the insurance covers your litigation expenses.
- Flood Insurance
Flood insurance may be beneficial (or required) in situations where a project is located in a flood zone. It is needed for avoiding insurance solicitations when the construction project could be impacted by a flood event.
Construction Insurance Cost Control
By completing your jobs in a timely manner and maintaining excellence in your construction business operations, you can save with smaller premiums and deductibles in your insurance.
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