Builders Risk / Contractors Construction Liability Insurance
Building risk and contractors’ construction liability insurance policies are designed to protect the materials, fixtures and equipment used during construction in the event of physical loss and cover damages caused by or at the insured construction project.
Every construction business should have both contractors’ general liability and builders’ risk insurance to cover new construction, remodels and renovations.
What Does a Building Risk Policy Cover?
Building risk insurance does what its name suggests and protects all structures under construction or during renovation.
A building risk policy also covers equipment and building materials on-site, off-site and in transit, such as:
- Modular components
- Temporary structures
- Important documents and data
Extended coverage can protect scaffolding, faulty workmanship and debris removal costs.
What Building Risk Insurance Doesn’t Cover
A building risk policy doesn’t protect employees and subcontractors or cover damages caused by the following:
- Government activities
Contractors’ General Liability Insurance
Contractors’ general liability insurance protects the policy-holder against the claims that include:
- Bodily injury (not including employees)
- Damages relating to advertising
- Damage to property owned by employees or subcontractors
What Contractors’ General Liability Insurance Doesn’t Cover
A contractors general liability policy excludes coverage for:
- Injuries to employees
- Damage to the policyholder’s own property
Among other risks, contractors and other professionals can be charged with breach of contract when failing to meet the terms and conditions of written agreements associated with their services.
Many professional liability claims are made against contractors, architects and engineers by building owners for alleged negligence, errors and omissions regarding the structural design, integrity, components and building subsystems such as curtain walls, roof assemblies and equipment loss or damage.
General contractors, developers and homeowners can all protect their investments in structures under construction by investing in the right building risk and general liability coverage.
Gallant Risk & Insurance Services provides custom packages that include:
- Building risk property on-site, off-site and in transit
- Owner-controlled insurance program (OCIP)
- Owners’ and contractors’ protective (OCP) liability coverage
- Surety bond for construction, contractors, performance, bid, payment and design firms
- Wrap-up, contractor-controlled insurance program (CCIP)
Our knowledgeable agents can bundle general liability, building risk and wrap-up insurance with options that suit the unique needs of contractors.
Protecting Your Assets
Fire, wind, theft, explosions, weather-related events, vandalism and vehicle or aircraft interference may occur at any point during construction. A certain level of security can be achieved with an appropriate insurance policy or bundle.
Contractors, other building professionals and homeowners can benefit from combining building risk and general liability coverage to protect unfinished structures, equipment and tools while they are on the client’s property.
Injuries, attorney, witness fees and court expenses can all be included in your policy to protect your business from costly liability claims.
Building risk insurance protects the job site and building materials during construction only, so your coverage ends when the project is completed. General liability insurance protects individual contractors from additional risk year-round.
Other coverage can include:
Workers’ compensation insurance covers both you and your employee for costs incurred due to a work-related injury or illness, such as:
- Lost wages
- Medical treatment
- Funeral costs
If you, your subcontractors or employees are charged with causing damage to the air, natural habitats, protected species, rivers, lakes, groundwater and other flora and fauna, the right contractors’ general liability policy can help with these costs.
Workers’ compensation insurance also covers business owners by assisting with payouts for legal defense if an employee files a lawsuit. Workers’ compensation liability coverage is required for employers to carry in most US states.
Construction surety bonds are designed to guarantee the policyholder’s business obligations and are underwritten to cover the following:
- Trade contractors
- General contractors
- Specialty contractors
- Highway and heavy equipment contractors
Building Risk and General Liability Insurance FAQ
Are all contractors required to have building risk insurance?
While the law does not require contractors to have building risk insurance, most clients do, so it will significantly limit the jobs you are offered.
Who gets paid when a claim is made?
The policyholder or lender is compensated depending on the project type and damages.
Does building risk insurance include liability coverage?
Builders’ risk insurance only covers property damage, but liability insurance can and should be added to your builders’ risk policy.
Does building risk insurance cover theft?
Yes, it can. Theft coverage is an option that is often included in the custom contractors’ insurance policies offered by Gallant Risk & Insurance Services.
How to Obtain Essential Contractors’ Building and Liability Coverage Fast in Southern California
Gallant Risk & Insurance Services, LLC., offers general liability, building risk and wrap-up insurance from their conveniently located Corona, California offices.
If you need a custom contractor’s insurance package, call us today at (951) 368-0700, and we will help you gain the peace of mind you need by ensuring your business is protected.