Common types of Construction Insurance:
Builders’ Risk insurance safeguards construction projects from loss or damage due to unexpected events, such as natural disasters or malicious acts. It provides protection for the property being built, materials and equipment used in the project, and third-party liability.
Commercial Auto insurance protects businesses from losses or damages resulting from automobile accidents that occur while using vehicles for business purposes. It provides liability coverage for injuries and property damage incurred by third parties, as well as physical damage coverage for the car itself.
Contractor’s tools and equipment insurance is a type of insurance policy designed to protect the specialized tools, equipment, and property owned by contractors. It provides coverage for losses due to theft, damage, or destruction of these items while at a job site or in transit. This type of insurance is essential for any contractor to minimize the financial risks associated with the loss of these expensive items.
Equipment breakdown insurance provides coverage for losses caused by the failure of mechanical and electrical equipment such as boilers, air-conditioning units, and production machinery. It helps businesses cover repair costs due to unexpected breakdowns or accidents that cause damage to these items. This insurance can reduce major financial losses associated with long downtimes and other issues caused by equipment failure.
A surety bond is a contractual agreement between three parties—the obligee, the principal, and the surety—that guarantees the performance of an obligation by the principal. It provides financial protection for an obligee who has entered into an agreement with someone else. The surety typically provides a guarantee that the principal will complete their obligations and may offer financial compensation if they fail to do so. This type of bond is often used in the construction industry and other industries where there is risk involved in entering into an agreement.
General liability insurance is an important form of financial protection that helps to mitigate the risk associated with potential losses related to bodily injury, property damage, and personal or advertising injury caused by the insured’s negligence.
When an incident occurs, it covers the costs of legal defense, court judgments, and settlements up to the limits of the policy. It also provides coverage for any medical expenses incurred as a result of accidents on your property. Additionally, general liability insurance can often protect businesses from potential reputational damage resulting from negligent acts committed by employees or third parties.
Errors and omissions (E&O) insurance is a form of professional liability insurance that protects policyholders from claims related to the mistakes or oversights made during their professional activities.
This type of insurance covers errors, such as negligence, inaccurate advice, mismanagement, or failure to act in a reasonable manner. It can also cover any losses resulting from these errors, including financial damages, legal fees for defending lawsuits, and settlement costs. E&O insurance is important for anyone in a profession that provides advice or services to others, as it helps protect them from potential lawsuits and financial losses due to negligence or other errors.