Are you planning your very own construction project? Whether it be a large or small-scale venture, it is wise for you to get a construction insurance policy for your project.
Here are six types of construction insurance you may consider for your construction project.
What is construction insurance?
Construction insurance is not a type of insurance in itself. In reality, this plan refers to several protection policies for construction projects.
As a result, there are several construction coverage policies offered. Each serves a different purpose and has its own coverage and limitations.
Types of Construction Insurance
Many companies offer several types of construction insurance policies. One policy is not enough. You would need multiple policies to cover all the possible injuries, damages, and liabilities during a construction project.
Learn about the different types and coverage of construction insurance policies below.
Commercial & Construction General Liability Insurance
Commercial general liability insurance covers the costs of treating bodily injuries or repairing damaged properties. Construction coverage is useful if an unforeseen hazard causes an accident during the construction project.
Contract Works Insurance
This policy covers buildings and structures under construction. However, the policy only covers damage caused by fire, weather, theft, and vandalism. The policy financially compensates for material damage and third-party liability as well.
Errors & Omissions Insurance
E&O insurance is the same as professional liability insurance. As contractors or engineers, we try to avoid unprecedented errors or omissions. However, when a mistake occurs at the cost of a client, then workers are covered by this policy.
Commercial Vehicle Insurance
Businesses must also obtain insurance for their vehicles. A commercial vehicle protection plan indemnifies policyholders against expensive auto repairs. The policy also reimburses medical and legal expenses resulting from a vehicular accident.
On another note, commercial vehicle coverage is not limited to construction projects. Other businesses that use automobiles can also get this type of protection plan.
Home Warranty Insurance
Contractors are obligated to have home warranty coverage. The policy mainly protects homeowners when an incident impedes the completion of their construction project.
Possible reasons that may hinder the fulfilment of a scheme include losing the presence of a contractor or having a merchant declare bankruptcy.
Additionally, the warranty covers the electrical and plumbing systems of the house. Obtaining a home warranty is important to get quotations and apply for licenses.
Workers’ Compensation Insurance
Workers’ compensation insurance covers the expenses when an employee is injured while working. It covers the medical fees and lost income of the person injured.
The policy also covers legal fees if the employee pursues legal action. When an accident results in death, the policy can cover funeral costs and death benefits.
What Type of Construction Insurance Should You Get?
Different construction insurance policies cover various expenses depending on the circumstances.
Choosing the right protection plan for you depends on the project you are working on. It’s ideal for mixing and matching these construction policies to ensure that you are financially covered from incidents you think can happen.