Construction projects involve certain risks. Hence, it becomes crucial to carry insurance to protect you and your workers, contractors, and stakeholders involved in the construction project. From property owners to contractors to employees – everyone needs some form of protection.
Construction insurance is available in several formats. Depending on your coverage requirements and budget, you can choose the policy.
Here are the five common types of insurance for construction companies:
General Liability Coverage
General Liability Coverage, or GL insurance, covers any accidental damages caused by the employees. It is not just a convenient way to protect your business from accidents, but also compulsory in several states. If contractors do not carry general liability insurance, their license may be canceled.
Workers’ Compensation Insurance
Your workers may be prone to accidents or injuries at work. Hence, it is your responsibility to protect them from such incidents and compensate them for their losses.
Buying workers’ compensation insurance will pay for employee’s lost wages, medical bills, and other costs. It also offers death benefits to employees’ families and dependents if they die at work.
Commercial Automotive Insurance
Commercial Automotive Insurance covers the accidents or damages caused by heavy-duty vehicles involved in the construction activities. It covers physical damage and liabilities resulting from accidents caused by commercial vehicles. Combining this policy with driver insurance can provide you an attractive discount on the premium.
A surety bond is not insurance, but it offers similar protection. Unlike traditional insurance that ensures personnel and machinery safety, surety bonds ensure project delivery. It ensures that the project is uninterrupted even in difficult circumstances.
While you may have covered your employees and vehicles, there are other types of equipment that need insurance. High-value assets such as generators, servers, and computers that require substantial investment should also be protected.
These are the policies that every construction project or company requires. For assistance with all your construction needs, contact the experts at Proforma Construction. We fulfill your construction dreams at a cost you can afford.