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The Importance of Insurance for Your Construction Project


There are all sorts of risks associated with construction projects, from natural disasters like fire and wind storms to vandalism, arson, and theft. As a contractor, you have a responsibility to ensure you and your employees are protected with the right types of insurance coverages.

Contractor’s all-risk coverage, also called builder’s risk coverage, is insurance that protects the building during its construction. It helps protect against damages and losses that might occur. Most of the time policies are written to cover the completed value of the building.

As a general contractor, you are not always required to obtain this coverage, as the building owner normally gets it to protect their interests. However, contractors can be held responsible for any losses that occur due to their or their employees’ negligence. Therefore, it is a good idea to have some form of liability insurance along with your own contractor’s all-risk coverage with the appropriate endorsements, such as:

  • Coverage for you and your employees’ equipment and tools.
  • Coverage for leased or rented equipment.
  • Coverage for crane rental, along with riggers and hook liability protection.

Remember, it is your responsibility to make sure you, your employees, and your equipment and tools are adequately insured, no matter what type of coverage the building owner has obtained.

Labels: Construction

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