commercial construction insurance typically provides comprehensive coverage to protect construction businesses, contractors, developers, and property owners from a range of financial risks associated with construction projects. Here’s a breakdown of what it usually covers:
1. General Liability Insurance
- Covers: Bodily injury, property damage, and personal injury to third parties (like clients or visitors) occurring on the construction site.
- Example: If a passerby is injured by falling debris, this insurance helps cover medical expenses and legal fees.
2. Builder’s Risk Insurance
- Covers: Damage to buildings under construction due to events like fire, theft, vandalism, weather (except flooding and earthquakes unless added), and more.
- Example: If a storm damages a partially completed building, this policy covers repair or replacement.
3. Workers’ Compensation Insurance
- Covers: Medical expenses, lost wages, and rehabilitation costs for workers injured on the job.
- Required: In most jurisdictions, it’s mandatory for businesses with employees.
4. Commercial Auto Insurance
- Covers: Company-owned vehicles used to transport tools, equipment, or personnel to job sites.
- Includes: Liability, collision, comprehensive, and uninsured motorist protection.
5. Equipment and Tools Coverage
- Covers: Loss, theft, or damage to owned or rented tools and heavy equipment.
- Can Include: Mobile equipment and machinery, even when moved from site to site.
6. Professional Liability Insurance (Errors & Omissions)
- Covers: Claims of design flaws, project delays, or failures to meet specifications due to professional negligence.
- Useful For: Contractors who also offer design or consulting services.
7. Umbrella Liability Insurance
- Provides: Additional coverage beyond the limits of other liability policies.
- Benefit: Extra financial protection in case of major claims or lawsuits.
8. Pollution Liability Insurance
- Covers: Environmental damage caused during construction, such as accidental spills or hazardous material exposure.
Summary
Commercial construction insurance provides layered protection including liability, property, and employee-related risks. The specific coverage can be tailored based on project type, size, and location.