What Does Construction Insurance Protect Against?

Why you need Insurance?

You must look out for a good insurance broker to give you coverage options for your property and valuables. You need insurance as it safeguards your financial interests if your belongings are damaged. There are insurance policies designed for every exposure. Understand the different types of insurance for property risks is important before you close escrow, sign a lease, or are building a property as a contractor. Compare different insurance types and consult a broker to discuss which type of  insurance you need for optimal protection.

More information on construction insurance

Insurance Options for Contractor

If you are a contractor planning to start a building it is a good option to consider comprehensive insurance from the start. Negligence to get a good coverage can bring huge financial losses to the builder because of any damages claims during the construction of the building. A good insurance plan will give you complete coverage as a contractor and will cover the following damages.

Lawsuits Coverage

A general liability insurance for contractors provides insurance to cover the costs of any lawsuit and claims made by third parties. As a contractor, during the development phase, if any labour is injured or anyone else gets bodily damage in the building surroundings, you can get sued by an individual or third-party business representatives. The lawsuit coverage covers the legal expenses to deal with such unforeseen circumstances.

Course of Construction (COC) Coverage

This type of insurance is to help contractors and builder from the damages to the building resulting from a natural disaster. As a contractor, you can get this insurance as a builder risk coverage, and it will cover your costs in disasters such as fire eruption, floods, theft or any other unfortunate incident. Any type of building project must take this coverage else the building will stand exposed to natural disaster without any financial protection for you.

Builders Risk Insurance

The Builders Risk Policy is an insurance plan that protects the contractor's investment made in materials, tools, or any fixtures used in the construction process. This coverage is a safety net for all insurable materials and will cover any financial loss to the equipment and building materials during the construction phase.

Your Line of Action

As a contractor getting a coverage is highly recommended. If you are not sure about the coverage plans that will best protect your interest, you should hire the help of a professional insurance broker. The premiums for construction insurance are affordable, and the benefits outweigh the investment cost.