If you own a construction company, you need adequate insurance to protect your investment. You may not realize it, but there are two types of necessary coverage, and they aren’t interchangeable. Let’s take a quick look at each.
Builders Risk Insurance
A builder’s risk policy covers the contractor’s property, materials, and equipment where the construction is taking place. This policy protects the project until it is finished and the owner approves of the work. The policy also covers unexpected perils, such as weather events, vandalism, and theft. Examples of damage include:
- Lightning strikes and hail
- Explosions and fires
- Theft and vandalism from external sources
- Vehicles that crash into the building
If the damage was caused by flooding, it won’t be covered. In addition, coverage is excluded for any weather-related damage that resulted from property left unprotected. Most builder’s risk policies only cover the damage to property or materials of the insured contractor.
Contractors’ General Liability Insurance
This general liability insurance covers bodily injuries, accidents, and damage at the construction property. In addition, if you or your workers are accused of causing injuries or property damage at the site, general liability insurance will protect your business. It will also cover litigation from claims of libel, slander, or false advertising.
Both policies are critical to protecting your construction company.
In Arlington, VA, you will find the headquarters for the National Pollution Funds Center. This center is controlled by the United States Coast Guard and was created in order to address the transportation of oil within American waters. In addition to regulatory involvement, the center is also able to respond to spills at any point in the day with a variety of resources.
The Damage to Nature
As seen in the aftermath of the Deepwater Horizon fire and explosion, oil spills are extremely harmful to the environment. Oil spills affect marine birds, mammals, shellfish, and fish. It clogs the insulating ability of fur-bearing animals and weakens the water-repelling abilities of a bird’s feathers. When this happens, it exposes them to harsh environmental conditions that can lead to death. A trickle-down effect also carries negative consequences to the ecosystem.
The Damage to Companies
Those that work in the marine industry know the heavy regulations that are in place to prevent oceanic pollution. Any fuel or oil spill that leaves any sheen on the water has to be reported to the U.S. Coast Guard response center, and many states require local reporting as well. If your company, boat, or operations is found at fault for the spill, Federal law requires that your company bear the costs of cleanup. Since these cleanup costs can be financially devastating, fuel spill liability insurance is worth purchasing.
Are you looking for construction insurance in Wayne, NJ?
If you’ve found it challenging to determine the coverages you need, here are four of the key insurance options that you should be sure to include in your policy.
General liability insurance is broad coverage in case a third party suffers bodily injury or property damage because of your business. If a lawsuit is filed against you, your policy will cover the legal fees and any other expenses for which you’re liable.
Professional liability is for construction companies who are also designers. If your client files a lawsuit claiming that your design didn’t meet their expectations or includes errors, your policy will cover the cost of any legal fees associated with the case.
Pollution liability insurance covers you in case a lawsuit is filed against you because your construction activities lead to pollution that caused harm to a third party or their property. Your policy can also be used to purchase items to help mitigate pollution.
Unlike many other industries, workers’ compensation is a requirement for construction companies. Your policy should cover your employees and any subcontractors you may work with as well.
Plenty of other insurance options exist to keep you covered against the many risks that are inherent to the construction industry. Work with an agent who’s experienced in construction insurance in Wayne, NJ to create the policy that’s perfect for you.