Construction Insurance: What It Is, How to Get It

Construction insurance is a type of insurance that protects construction projects and the people working on them. Construction insurance can help cover the cost of repairs or replacements if something goes wrong during the construction process. It can also help protect against injuries that occur on the job site.

There are a few different types of construction insurance that you can purchase, depending on your needs. General liability insurance covers damages that might occur to third parties, such as passersby, during construction. Builder’s risk insurance protects against damage to the actual structure being built. And workers’ compensation insurance helps cover medical expenses and lost wages if an employee is injured.

You can purchase construction insurance through the most significant insurers or a speciality insurer focusing on this coverage.

What is construction insurance?

There are a variety of different types of construction insurance available. Some of the most common include: general liability insurance helps cover any damage that might occur to third parties, such as passersby, during construction. Builders' risk insurance protects against damage to the actual structure being built. Also known as “all-risk” insurance, lenders often require this type of coverage. Employment practices liability helps protect against lawsuits from employees or former employees. If you are in a project involving workers on a construction site, you will need to provide workers' compensation protection.

Who needs construction insurance?

Anyone who is involved in the construction process. Usually, one of the parties to a construction project will hold this insurance. The general contractor usually holds the policy and passes it along to subcontractors. Some parties may need construction insurance: General Contractor Subcontractors Prime Contractor Builder Developer or Owner Homeowners Association Developers Professional Engineer Design Architect Construction Manager. There are several types of construction insurance.

Each type of insurance provides different coverage.

This is the most widely used form of construction insurance. It covers claims for bodily injury and property damage on a construction project. This type of insurance will also cover other losses, such as loss of income. There are two forms of general liability construction insurance:

1. Blanket policy This policy provides coverage for the entire project and is not specific to any contractor or subcontractor.

 2. Named-peril policy: This provides coverage for specifically named contractors, subcontractors, or craftsmen. These policies are more expensive than blanket policies because they are more specific to the project and its workers.