As a building contractor, you may have wondered what sort of insurance you need to be carrying. Regardless of whether you’re in the process of gathering materials or are already actively working on a construction project, having liability insurance for building contractors helps protect you in case of a claim and sometimes may even make a difference in whether a client decides to hire you. Liability insurance might sound complex, but the basics are actually straightforward.
There Are Two Primary Coverage Types To Consider
In order to get the most out of your policy, there are two types of coverage you’ll likely need. These are:
- General liability insurance, which protects you in case of damage or injury to a worker or others
- Builders risk insurance, which covers property, materials and other equipment used in the construction process
While the specifics of your policy vary based on the type of construction projects you take on, having both types of coverage gives you the most thorough safety net.
Check the Damages Each Policy Covers
There are countless incidentals involved in construction, which means you’ll want a policy that covers as many potential damages as possible. Some important ones to make sure your insurance includes are:
- Car or aircraft crashes
- Weather-related damage
- Injury on the property
Working in building contracting presents many exciting opportunities, but can also come with several unique risks. In order to protect yourself throughout the construction process, look for thorough liability insurance for building contractors.