2 Construction Industry Insurance Policies Essential to Protecting Your Building Business

If you work in the construction industry, there are certain insurance policies you must carry to protect yourself from building liability. The two forms of essential coverage are builders risk insurance and contractors general liability insurance. To ensure that all your potential exposures are covered for a construction project, you will need both policies. Complete building liability protection includes:

1. Builders Risk Insurance

Builders risk covers the contractor’s materials, equipment and property related to the building being constructed. Examples of events protected include:

  • Fire or explosion
  • Lightning strikes
  • Hail
  • External theft

2. Contractors General Liability Insurance

A construction general liability policy is critical in the construction industry. If you are accused of causing injury, property damage or negligence, general liability assists with legal fees to keep your business in operation and avoid financial devastation. Among the incidents covered are:

  • Someone is injured on your property
  • You are renting commercial space that becomes damaged
  • You or your employees cause injury or property damage
  • You are sued for false advertising or copyright infringement

Builders risk insurance and contractors general liability insurance are both imperative mechanisms for maintaining building liability coverage and risk mitigation, as well as safety for owners, contractors and employees. Responsible protection for your company and your construction personnel demonstrates your company’s dedication to providing the best possible work environment in this economically vital industry.