Finding coverage for subcontractors that provide specialized services can cause challenges.
It is hard for insurance companies to put a value on a construction project because the value goes up as the building goes up.
Buildings Being Constructed Face Risks
Buildings that are under construction are more at risk for fire, vandalism, and water damage.
Every sub-contractor who is on the site can be liable for their own components of the project.
Being in the construction industry, you are aware that accidents happen every day and any builder that does not have the right insurance puts his business and livelihood in danger.
Seek Help From Experienced Builders Insurance Agent
It is important to team with an expert who has knowledge of your industry, an expert who will know the ins and outs of the types of builders insurance policies you will need.
Your insurance policies should be held as a vital part of your business operations.
If you are like most other contractors, you do not have the sufficient capital to meet the costs if an accident happens.
While accidents and problems do occur, the right builders insurance can reduce most of your risks for a small cost compared to the possible liabilities.
Essential Builders Insurance Policies For Builders
General Liability Insurance
If you or a sub-contractor injures a third party during the operations of the business or damage property, general liability insurance will cover the costs of the claims.
It will cover legal costs that you may face because of the claims as well.
Even though General Liability Insurance will cover your losses, it will only cover to the top of your limit; you are liable to pay the differences.
The costs of the premiums are based on the type of work that you do, the number of employees you have, and your claims history.
Nowadays most clients will not allow a contractor to bid on a job let alone work on a project without the proper Builders Liability Insurance.
Workers Compensation Insurance
The Workers Compensation Insurance system was designed to protect both employees and employers if a worker in injured on the job.
Since the system is set up as a "no fault" system, neither the employee nor the employer is held liable for the claim.
Workers Compensation is controlled and monitored by your state.
Workers Compensation will pay for specific injured employee benefits that include medical expenses, loss wages, and rehabilitation benefits.
Many states require that every company that has one or more employees have adequate Workers Comp coverage.
If you fail to have the required Workers Comp coverage, then you are likely to receive fines and penalties and even be required to pay for benefits out of pocket.