How to Cover Your Firm Against Four Common Contractor Insurance Claims
Construction
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Construction Insurance
No matter your role in a project, any company involved in the construction field is open to a multitude of liabilities and risks. This can range from serious accidents involving workers being injured to hazardous material spills to property damage caused by crane operator error. As a business owner, you need to be prepared for the risks you know are there and anticipate what may occur, and you can do both with our contractor liability insurance and other risk management programs.
Heffernan’s construction insurance brokers serve all sectors of the industry:
- Alternative Energy
- Concrete
- Construction Managers
- Developers
- Design/Build Companies
- Drywall and Plaster
- Engineering Firms, including Roadwork
- Environmental
- General Contractors
- Specialty Contractors
- Subcontractors
Building Trade Contractors including:
- Carpentry
- Electrical
- Glaziers
- Landscapers
- Masonry
- Painters
- Plumbing
- Roofing
- Mechanical/HVAC
Protect Your Construction Projects with Builders Risk Insurance
Builders risk insurance is essential for anyone in the construction industry, protecting your projects from unexpected damage during the build.
We offer customized coverage that fits the specific needs of your project, covering risks like fire, theft, and weather-related events. With our expertise, you can trust that your investment is protected, keeping your project on track and giving you peace of mind.
Frequently Asked Questions
Explore key questions about Construction and Builders Risk Insurance
What is Construction Insurance?
Construction insurance is a broad term for various policies designed to protect construction projects, companies, and workers. These policies include builders risk insurance, general liability insurance for contractors, workers’ compensation, and professional liability insurance.
What does Construction Insurance cover?
Construction insurance covers risks associated with construction projects. Key coverages include builders risk insurance, protecting the project during construction, and contractor liability insurance, covering third-party injuries and property damage. Workers’ compensation is essential for job site injuries, and professional liability insurance covers claims of negligence or errors in design and planning. Coverage can be tailored to the project’s needs.
Who needs Construction Insurance?
Construction insurance is essential for general contractors, subcontractors, project owners, and developers. It protects against risks like property damage, worker injuries, and legal liabilities. Even small construction companies and independent contractors should have construction insurance to mitigate potential risks. Consulting an insurance broker can help determine specific coverage needs.
What are the costs of Construction Insurance?
The cost varies based on factors like coverage type, project size, and location. General liability insurance for contractors ranges from $500 to $2,000 annually for small contractors, with larger projects seeing higher premiums. Builders risk insuranceBuilders risk insurance typically costs 1% to 4% of the construction budget. Workers’ compensation premiums depend on employee numbers and job nature. For precise costs, consult an insurance broker.
How to get Construction Insurance?
Contact an insurance broker specializing in construction insurance. Provide project details, including type, size, location, and budget. The broker will gather quotes from various carriers to find the best coverage options. Review the quotes, select the policy that fits your needs, and pay the premium to activate your coverage.
What is Builders Risk Insurance?
Builders risk insurance Builders risk insurance, also known as Course of Construction Insurance, is a specialized property insurance covering buildings and structures during construction, renovation, or repair.
What does Builders Risk Insurance cover?
Builders risk insurance protects buildings and structures during construction, covering against physical loss or damage from perils like fire, theft, vandalism, and certain weather events. It also covers materials on-site, in transit, or at temporary storage. However, it does not cover on-site accidents or injuries—contractor liability insurance does. The policy ends once construction is complete.
Who needs Builders Risk Insurance?
Builders risk insurance is crucial for contractors, builders, property owners, and lenders involved in construction projects. It protects the investment in the project and is often required by lenders for construction loans. Anyone with a financial stake in a construction project should have builders risk insurance.
What are the costs of Builders Risk Insurance?
The cost of builders risk insurance varies based on the construction budget, project type, location, and coverage limits. Typically, it costs between 1% to 4% of the construction budget. For example, a $1 million project may see costs between $10,000 and $40,000. Factors like project duration and specific endorsements can also influence the premium. Consult with an insurance broker who specializes in construction insurance.
How do I get Builders Risk Insurance?
Start by contacting an insurance broker specializing in builders risk policies. Provide detailed project information, including budget, timeline, and construction type. The broker will gather quotes from various carriers, and you can select the best coverage. Complete the application process and pay the premium to activate the policy.
Join our growing network of over 1,000 contractor and developer clients nationwide. We understand your perspective and will work with you to create a program specific to your needs.
To speak to one of our construction insurance specialists, please contact Heffernan Insurance Brokers today.
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