Types of Contractors Insurance: Exploring Coverage Options for Construction Professionals

Construction poses inherent risks, and all parties engaged in a project—whether contractors or property owners—have a vested interest in its successful outcome. To mitigate the risk of financial loss, various types of insurance are available specifically for the construction industry.

Contractors Insurance Options for Construction Professionals

The following are coverage options for those in the construction industry:

• Builders risk insurance can offer financial protection for buildings while they are under construction, whether they’re remodels or new construction. This policy can be purchased by the project owner or general contractor and covers all parties involved in the project.
• General liability insurance can help financially protect against third-party claims. These claims typically involve bodily injuries, property damage, and even advertising claims related to defamation. This policy can help preserve business assets and cover damages up to the policy limits for covered claims.
• Errors and omissions insurance, also known as professional liability insurance, offers financial protection for contractors against claims arising from professional mistakes or negligence. It can help cover legal costs and damages resulting from errors in design, project management or other professional services.
• Inland marine insurance can financially cover property that is in transit or temporarily away from the construction site. This may include tools, equipment and materials during transportation, storage or while being used off-site.
• Commercial auto insurance can offer financial coverage for vehicles used in business operations. It typically offers coverage for bodily injury or property damage resulting from accidents involving company-owned vehicles.
• Workers’ compensation insurance is essential for construction professionals with employees. It can cover medical expenses and lost wages for employees injured on the job, helping to ensure compliance with laws protecting both workers and employers.
• Pollution liability insurance can help address environmental risks associated with construction projects. It can cover cleanup costs and damage resulting from pollution incidents, such as accidental spills or hazardous material releases.

Contactors Insurance in Bronson, MI

Contractors should carefully consider these insurance options to safeguard their projects, assets and financial well-being. By understanding the different types of contractors insurance, construction professionals can make informed decisions to manage risk effectively. Insurance needs may vary based on the specific project, location and contractual requirements. Contact Hathaway Agency, Inc to tailor coverage to your unique situation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.