A Short Guide to Builder’s Insurance and Risks

Every construction project requires some type of insurance. These requirements can get very specific depending on the type of project being completed and where. Civil contracting insurance gold coast may be completely different than what is needed in other areas of the country due to differences in the terrain, weather, and local laws. While many business owners may see insurance as a costly expense, it can be greatly helpful in case of natural disasters, material damage, or even injuries to their employees. In some cases, in order to put in a bid to a civil contract, your company will be required to hold certain policies to be considered for the order. Sometimes, figuring out what types of insurance cover what can be a rather confusing process.

Liability Insurance

To many, liability insurance is one of the most important policies that you can hold when it comes to a construction project. Sometimes, things just don’t go as planned on a construction site and accidents happen that cause damage to property or to construction workers and bystanders around the site. It’s important to know the limitations and coverage when it comes to choosing liability insurance to minimize the risk to your business.

Performance Bonds

There are some instances in which contractors are not able to fulfill the contract as was set in the original provisions. This could be due to underestimating the costs and time requirements of the projects or even personal issues that prevent the contractor from fulfilling their responsibilities. Whatever the reason, it is still the responsibility of the contractor to complete the project as agreed upon and a performance bond can help to pay for the losses incurred. It’s important to make sure that you are protected as a contractor just in case you are not able to complete the contract that you won.

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Builder’s Risk Insurance

This type of insurance protects the property of the builder such as equipment, materials, and fixtures. While liability insurance covers what doesn’t belong to your company, builder’s risk will help when you need to be compensated for the loss or damages sustained to the possessions of the contracting company during the build. If there is a problem on the site like fire, vandalism, theft, or high winds, builder’s risk insurance can cover these perils. Sometimes, this type of insurance is required by the city to get a permit for the planned construction.

Flood Insurance

In many cases, civil contracting insurance may not include provisions for flooding. In areas that are at risk for flood damage, it’s important to make sure that your coverage keeps you protected from this type of damage that can occur quite often. While some areas are less prone to flooding than others, that doesn’t mean that they are necessarily safe from them completely. Even if it’s not a requirement by the city issuing the permit or the customer that placed the order, obtaining flood insurance should be taken into consideration.