Builders must protect themselves from a number of potential liability issues that are inherent in the business. Builders risk insurance protects the company from many types of damage, theft and weather events, but it won’t protect against injuries and damages at the work site. A separate liability policy is required.
General Liability Insurance
Builders insurance that protects against property damage at the construction site is covered under a general liability package. Damages caused by such things as fire and explosions, as well as some underground digging at the work site, are covered.
Protection against injuries to clients or visitors at the contractor’s facility or at the work site also fall under this policy. Typically, injuries to the contractor’s employees are covered under a separate workers compensation plan.
General liability insurance will also protect the construction company if a claim is filed against an employee for causing an injury to someone or damage to property.
General liability plans don’t cover errors and omissions or negligence, however. It’s important for builders to meet with their insurance agent to discuss the risks inherent in the work so that a comprehensive policy can be designed. Legal fees and other costs can be expensive, so it’s crucial to have adequate coverage.
The savvy builder is prepared for potential risks with a comprehensive insurance package.