Why Your Construction Insurance Is Not Good Enough

A Builder’s Risk policy gives you peace of mind that you are insured if something happens on your site. Some clients may insist that you have Builder’s Risk but it is not mandatory. Continue reading →

Published by
Crissa Bulao

Your Construction Insurance may not be giving you the protection you need.  If you only have Workers Compensation and General Liability, you could be vulnerable to many risks on your project.

Builder’s Risk insurance is property coverage and is a valuable addition to your insurance portfolio. Let us look at the coverage provided by the various forms of insurance, and how Builder’s Risk will help your business.

3 Types of Construction Insurance

The purpose of insurance is to transfer the risk you face to another party.  On a construction project events can occur resulting in costs that you cannot afford to pay out of your own pocket.  These events do not happen on every project, but when they do having insurance to pay the costs makes an enormous difference to your business.

The three main forms of Construction Insurance are the following:

General Liability:

This insurance is very important, and it is also mandatory.  If in the course of your business you damage another person’s property or you cause bodily harm to someone, they can sue you for negligence.  General Liability covers this, and will also pay for your defense.  The standard policy covers up to $1 000 000 per incident and a total of $2 000 000 for the whole life of the policy.

Workers Compensation

If you have employees, by law you need to have this insurance.  It covers medical costs as well as loss of income in the event of your worker receives injury in the course of his or her work.  If you do not have a policy you will have to pay these expenses yourself and also face a penalty fine.

Builder’s Risk

Builder’s Risk is not mandatory but it gives you valuable coverage on a construction project. This specialized coverage is customized to your project. You can include coverage for the theft of tools and materials, damage to expensive equipment, property replacement in the event of an accident, or even damage due to adverse weather events.  Soft costs like architects and lawyers can also be added by endorsement.

What to include in your Builder’s Risk policy?

Your business and the projects you do are unique to you.  In the same way your policy should be tailored for the risks that you face.  It is advisable to speak to an expert that knows both the construction and insurance industry well.  Our agents at Contractors Liability will assist so that you get what your project needs.

Avoid financial risks with Contractors Liability Insurance company

Without Builder’s Risk insurance you are left exposed to many risks.  By buying a Builder’s Risk policy you gain peace of mind that you are insured if something happens on your site. Some clients may insist that you have Builder’s Risk but it is not mandatory.

When you have it, however, you demonstrate that you are a professional and able to take proper care of a project.  You will have protection in the event of a loss event on site.

Speak to Contractor’s Liability to get your customized Builder’s Risk policy. With more than 20 years in the industry they can get you the right coverage and set you up for success.  Call Contractors Liability on 773-985-2528.

Why Your Construction Insurance Is Not Good Enough was last updated March 6th, 2025 by Crissa Bulao
Why Your Construction Insurance Is Not Good Enough was last modified: March 6th, 2025 by Crissa Bulao
Crissa Bulao

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