Types of Construction Liability Insurance

Construction Liability Insurance

Before beginning work, owners, general contractors, and subcontractors must be sure they have construction liability coverage to protect them from the many accidents and mishaps that can occur during a project. Here are the types of policies available.

General Liability

General liability is the minimum coverage necessary for anyone doing business. It pays for things like hospital bills and replacement of personal property in the event that someone is injured or has something damaged at the work site.

Builders Risk

Builders risk insures the actual materials used in the construction process, and will pay to replace them in case of the following events:

  • Fire
  • Hail
  • Theft
  • Vandalism
  • Vehicle collisions

Professional Liability

Professional liability protects you, your architects, contractors, and engineers from claims of negligence or breach of contract. Even if the claims are unsubstantiated, insurance will pay for the legal costs of defending your business.

Extra Expense

Extra expense insurance covers additional costs associated with recovery from an interruption in construction. While less well-known than the other policies, it can be the difference between a project staying afloat or going bankrupt.

While sorting through potential types of coverage, consider the worst case scenarios and how your business would cope with them. Remember that it is better to have too much construction insurance than not enough.