Everything about construction insurance and contractors’ insurance

Given the wide variety of insurance packages on the market, it may seem unnecessary to purchase specialized insurance in the construction industry. If you already have a general business insurance policy, for example, why would you need additional coverage?

Well, every industry has its own set of unique risks – and the risks present in the construction industry and contractors are particularly high. Whether you work in the construction of infrastructure or residential, commercial or institutional buildings, you are faced with important issues. Equipment, workers, materials, and job sites must be protected when accepting a project, and a general insurance policy may not be sufficient.

Construction insurance is not just about protecting you. In many cases, you must have specific insurance for a project to be entrusted to you or even to be able to participate in the submission process. Every business must have insurance, but the main thing is that this insurance is adapted to its activities.

Construction insurance and contractors’ insurance: what’s the difference?

A national construction company requires different solutions than a small construction company would . Indeed, its projects are often major commitments requiring the participation of a very large number of people. Therefore, the construction company will need to obtain comprehensive and flexible insurance that will protect each worker, that is, insurance designed for construction projects .

Contractors specializing in electrical work, concrete installation or interior finishing face particular risks and must ensure their own safety. If you are a contractor, you will need insurance similar to that of a large construction company, but yours should be suitable for your trade (and the risks associated with it), your assets and your day-to-day operations. .

Three insurance policies designed for construction companies

Property and general liability insurance are the two main categories of business insurance, but there are other specialist insurances that cover specific aspects of construction projects. Here are three of the main ones.

Construction site insurance

A type of property insurance, construction insurance covers labor, equipment and materials provided by the owner and contractors during the construction project. This assurance becomes especially important as the project progresses: materials and labor hours will add up, and more equipment will be stored on the job site, meaning there is more to lose.

Wrap up insurance

This is a type of liability insurance that can cover owners, contractors and subcontractors. Wrap up insurance can help cover your defense costs in the event of a claim arising from damage or loss suffered by your client. Since many things can go wrong in a project, this type of protection is especially important.

Bond

This guarantee is not always necessary, but it plays an essential role when it applies. If you are working on a large construction project (or are submitting a bid), and for some reason you are unable to meet your contractual obligations, a surety solution would cover the costs paid by your client (the master of ‘work).

Three main insurances for entrepreneurs

Entrepreneurs need to have insurance from the start of a project – and sometimes even after it is completed. The insurance needs of specialty contractors can be different , but the following three insurances are usually useful for all types of contractors.

Floating insurance for installation and contractor equipment risks

The materials and equipment that you will use during the upcoming project will likely be covered at the job site, if they are in transit, and even if they are in a temporary storage location. What if the storage facilities were destroyed by fire while your materials and equipment were there? You would have to shell out a lot of money to replace them. However, floating installation risk and contractors’ equipment insurance would help cover these costs.

Public liability

No one is immune to mistakes, and they can sometimes be costly. If you accidentally damage someone else’s property or cause bodily harm through your work or activities, Commercial Liability Insurance (RCE) can help you cover the damage. The RCE can also assume your defense or that of your company against the allegations in question.

Automobile of non-owners

Your personal auto insurance may not be sufficient if you or your employees get into trouble while driving your personal vehicles as part of your business. However, if you do collide with another vehicle and injure the driver while delivering tools to the job site, you may find non-owner auto insurance useful.

Choosing your insurance – things to consider

There are many changing and unique aspects to your construction business that need to be watched closely. Although there are common and essential insurances, there is no universal insurance that fits everyone. You must therefore evaluate the options available to you according to your needs. This is when a broker can help you.

Insurance for the construction industry can seem complex, but with some research and the right advice, it’s easy to find the insurance you need to protect your bottom line and continue to build a successful business. Visit our construction insurance page or our contractors insurance page to see how our insurance offers you comprehensive protection.