Constructor Insurance

Construction is a profession with a higher risk associated with it, no matter what the trade, as compared to other professions. Getting a Constructor Insurance policy that is not only the right fit for you as a contractor but also suited to your needs as an individual business, is the most important thing you can do for your business. It doesn’t matter if you are hired to remodel bathrooms, install a roof or paint a room, there are a lot of things that can go wrong. From a roof tile falling on someone’s head to a pipe bursting or an employee hurting themselves, the list is long. Suitable insurance can be your only safety net in hard times.

An insurance policy is to be considered a small business insurance policy, which incorporates all the insurances you will need to protect yourself and your business. No two insurance policies can be the same. They have to be written separately for every business. Whether you are the owner of a large construction company that handles multi-million dollar projects or an independent contractor who works alone, insurance is something you will need to keep your business safe and help you prosper, without the risk of going bankrupt for an unintended, honest mistake.

Who might need Constructors Insurance?

Contractors can be broken down into two types;

Contractor: The contractor is responsible for overseeing the whole project to its completion and for fulfilling the contract signed. For example, it can be a remodelling project or a brand new construction project.

Subcontractor: This is a person or company hired by the contractor to do certain jobs or specific tasks on a job site. A contractor usually hires the subcontractor as a specialist in certain trades. For example, a contractor hires a plumber to redo the kitchen. A subcontractor is usually hired by a contractor not directly by the client.

However, it doesn’t matter if you’re a general contractor or a subcontractor, you’ll need Constructor Insurance. Insurance will protect you and your business from any work-related issues or accidents. It doesn’t matter which trade from the construction industry you are from, you will need the insurance policy as a safety net in case of claims or medical expenses.

What is covered by Constructors Insurance?

A good insurance policy has many different types of insurance which can cover you and your business. It is usually written specifically for you as per your needs in regards to your business. Your insurance will cover you and your business for all your needs as a contractor. These issues can include the cost of claims, lawsuits, and damages to your property or other people’s property.

Here’s what the essentials are:

• General liability insurance

This will kick in if you or one of your employees end up damaging a customer’s property or causing an injury on your worksite. It can save you from most of the liabilities that come your way. It is also usually required by clients to ensure that any damage done during work, is covered.

• Worker’s compensation

This is usually an important part of Constructors Insurance considering that it is a requirement for a contractor license and usually is needed for bidding on large projects. Not to mention, if an employee gets hurt while on a job for you, this will help protect your company and pay their medical bills or lost wages. This, as part of insurance, can be a safety net for your business.

• Commercial auto insurance

It doesn’t matter if you own one small truck or a large fleet of trucks with equipment mounted on them, commercial auto insurance is a staple for your business. The risk of an accident caused by your vehicles or to them can be pretty high. This, as part of insurance, can protect your business.

• Tools and equipment

As a contractor, the tools, and equipment you own are the most precious thing because they are how you complete your jobs. It is extremely important to keep them safe from theft and damage of any kind. Insurance has tools and equipment coverage as per your requirements, so you can replace or get your things repaired as soon as possible to keep your workflow seamless.

• Excess liability

Excess liability or umbrella insurance is coverage that kicks in when your general liability or any other insurance fails to cover you for a certain amount, larger than your policy. It is a part of Constructors Insurance so you can be protected when you work on large-scale development projects.

• Surety and licence bonds

Bonds are a very important part of insurance, because from your licence to bidding on projects, you will need several kinds of bonds throughout your career. They are an essential part of Constructors Insurance

• Builder’s risk

Before you can hand over your project back to a client, the building is under your custody and your protection. Any harm that may come to the buildings, like fire due to an electrical failure or flooding due to a pipe bursting. Avoid the cost of repairs, replacement and reconstruction by getting builder’s risk insurance policy as a part of your insurance.

• Installation floater

Anything, while in transit, is exposed and at risk of getting damaged in an accident, stolen or harmed in any other way. Your machinery, equipment, vehicles, and building materials are just as vulnerable, while it is being transported to and from your worksite. It also covers your surplus materials stored on-site before being used. And as far as your auto insurance, it provides SOME cover, but not complete protection. Therefore, an installation floater is a necessary part of your insurance.

• Professional liability/E&O

Even as a contractor, you can be held liable for errors and omissions in your logs, contracts or any other thing. Though it is not a necessity for smaller construction companies, it is a must-have for larger construction companies who deal with larger projects in their insurance policy.

• Business owner’s policy

As a small business, your business owner’s insurance policy is extremely important for your insurance policy. This actually bundles up general liability, workers comp, and auto insurance all in one affordable package for your insurance.

• Commercial property

This is insurance you must have if you own or rent the building you house your office in. it will also cover your supplies, inventory, warehouses, and other property not covered by general liability insurance. Commercial property insurance can be a big life saver as a part of your insurance policy.