Construction work is an expensive matter. Investments in the form of materials and labor are necessary in order to accomplish projects, yet disaster is still inevitable during and after the construction. Luckily, securities in the form of insurance are available. Here are some basic insurance coverages and policies you need to know if you consider investing in construction.
General Liability Coverage
General liability insurance is a type of insurance that offers protection to your workers and property damage in the course of the project. It covers you and your company from injuries and property damage resulting from your products and services. General liability coverage will define the type of injuries and property damage it can cover so better read the policy.
General liability will not cover employee injuries, auto accidents, intentional acts or workmanship. Do take note that it will not cover the costs needed to repair the defective work, only the damage that it caused. It is also mandatory for all contractors in every state to have general liability coverage before accepting any contracts.
Builders Risk Insurance
This insurance will cover the buildings and other structures while they are under construction. The coverage usually includes the building materials, foundation, scaffolding, fences, and fixtures built by the builder. However, the coverage is mostly limited to damages caused by weather, fire, and vandalism. You could opt for a premium to extend your coverage limits, insurable property, and events.
Worker’s Compensation Insurance
Also known as worker’s comp, it is designed to secure the business when an injury fell on one of its workers while working on the job. It is required by some states before you can start your work as a contractor. The insurance will cover medical expenses, missed wages, recovery costs, and funeral costs. If you have more than 5 workers, worker’s compensation is mandatory before the state can allow you to work.
Commercial Automotive Insurance
Commercial automotive insurance will cover the vehicles used by your business. This will cover all vehicles, used in construction or not. It will protect policyholders from auto accidents, vehicular repair, medical expenses and lawsuits from auto accidents. If you use your personal vehicle for business, you can also have it under the coverage.
Not insurance per se, but it protects you and your business in case you cannot finish your project. This would help you pay for materials in the event you cannot afford to get one and provide protection for subcontractors, vendors, suppliers, and other businesses you work with.
Asset protection allows you to ensure your company’s assets, regardless if it is related to construction or not. Assets are usually equipment used in construction but this will also cover equipment used in your company’s day to day operation. Special equipment may include your company’s server.
At Black And Associates Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (509) 464-0058. You can also request a free quote by CLICKING HERE.
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