What You Should Know About Builder’s Risk Insurance and Construction General Liability Insurance
If you work in the construction industry, then you know that there are certain insurance policies you must carry to protect yourself. The two forms of essential coverage are builder’s risk insurance and general liability insurance. Many people get confused between these two policies, only taking out one form of coverage. Here’s what you should know about these insurance policies.
Contrary to popular belief, builder’s risk insurance and general liability insurance are not interchangeable. For a construction project, you need to have both policies in order to cover all your potential exposures.
Builder’s risk insurance is designed to cover the contractor’s materials, equipment, and property related to the building being constructed. This insurance policy works to protect the contractor’s interest in the equipment, the value of the property, as well as the materials while they are being used in the construction process. Coverage continues until the project is completed and signed off on by the owner.
Builder’s risk insurance coverages damages from the following:
- Mechanical breakdown
- And more.
Note that most builder’s risk policies do not cover tools, equipment, liability, workplace accidents, or property belonging to anyone other than the specific insured.
A general liability policy helps to cover risks regarding bodily injuries and property damage. It protects a contractor against possible accidents and the liability that may arise from these. This policy is essential to anyone in the construction industry as it will safeguard you if you are accused of causing injury or property damage, as well as negligence. Lawsuits can be expensive and can take time and money away from the construction project.
A standard general liability insurance policy can cover if:
- Someone is injured on your property
- You are renting commercial space that gets damaged by a covered peril
- You or your employees cause injury or property damage
- You’re sued for false advertising, slander, libel or copyright infringement
Have questions regarding your insurance for your project? Talk to the team at Nahai Insurance Services! We can help you secure the right coverage for your needs today.