What is covered under contractors all risk insurance?
Construction insurance protects construction companies, general contractors, and property owners from lawsuits, property loss, and other costly liabilities.
For a lot of construction and contractor companies, a single insurance policy will not be enough. Instead, you will need a unique set of different insurance policies that every provide a certain type of protection for your organization and construction projects. What're the types of construction insurance ?
As a construction business owner or project manager, you should look at these types of coverage for the company: General liability insurance
General liability insurance protects against common risks that construction businesses face. These risks include:
Third-party property damage Third-party bodily injury Copyright infringement and other advertising injuries Damages due to your completed construction or installation
If one of these brilliant events were to happen at your projects site, your commercial general liability policy would cover the cost of any medical bills, and any property repair or replacement costs.
Because the chance of bodily injury and physical damage to property is much higher in construction than in other industries, general liability must be a vital part of your construction insurance coverage. Your clients may even require you to carry this coverage in order to complete construction projects.
When selecting a general liability insurance coverage, make certain it offers products-completed operations coverage, also known as product liability insurance. This coverage provides financial protection against lawsuits over property damage or bodily injury brought on by your construction project, like a construction defect that later causes an injury.
Workers' compensation insurance
Workers'compensation insurance covers medical expenses and lost wages for the employees if they suffer a job-related injury or illness. Most states require any construction company or contractor that's at least one employee to transport workers'comp insurance.
Construction is just a physically demanding industry with lots of opportunities for injuries. In the event that you or among your employees were to get hurt on the work and you didn't have workers'comp coverage, you might be held in charge of the resulting medical bills and lost wages.
Workers'compensation insurance protects you, your business, and your employees by covering those expenses. Additionally, employer's liability insurance is included in most workers' compensation policies and will help buy employee lawsuits should a worker point to unsafe working conditions as reasons because of their bodily injury.