Having the right policy will determine whether money is made or lost. Two key insurance policies are Contractor’s Liability Insurance and Builder’s Risk Insurance. Contractor protection is essential in case of anything that may arise during the construction period.
As a contractor, you should take the appropriate steps to protect your business from losses. However, risks may not be covered by a single policy. In this article, we’ll explore some of the key differences between the coverages of the two policies.
Builder’s Risk Insurance
Builder’s Risk insurance offers coverage for structures under construction. It can also be extended to equipment and materials. This will include restructuring, a new construction project, remodeling, and the installation of accessories. Your Builder’s Risk will cover:
Damage Caused by Natural Weather Conditions
A construction site is not protected from the elements. This insurance will cover damages from floods, wind, and hail, among others.
Damage Caused by a Vehicle or Plane
Some sites are close to highways, roads, and even airstrips. Builder’s Risk insurance will cover the cost of fixing the damage, replacing destroyed equipment, and cleaning.
Theft and Vandalism Insurance for a Building Under Construction
Theft in the workplace costs the construction industry a billion dollars a year. Other losses result from theft of material and accessories or vandalism.
Extension Policies
Every good insurance agent will provide additional benefits to cover other scenarios. These may include:
- Removal of debris.
- Loss of profits.
- Replacement of property.
- Loss or damage of equipment both on site and in transit.
- Temporary structures, e.g., fences.
Contractor Liability Insurance
Contractor liability protects your business from liability that may arise from bodily injury or property damage to others. It offers a fair assurance for a building under construction. Your policy covers:
Claims for Damage to the Property of Third Parties
Contractor liability protects your business from financial costs related to damage caused to third parties during the construction of the property.
Claims for Damages to Third Parties
Your contractor liability insurance covers claims for injuries associated with your operations or products. The policy will cover medical expenses and lost wages. However, the coverage does not cover personal or employee injury.
Advertising Errors
Contractor liability insurance covers the cost of liability lawsuits resulting from your advertising activities.
Damages to the Premises That Have Been Rented to You
Due to the nature of construction materials and equipment, storage spaces are at risk of being damaged. Your contractor liability will cover repair costs.
You should look for a company offering the right cover to enjoy the benefits.…
When shopping for insurance coverage, most people limit their vetting process to the deductibles and premiums charged. However, there are several other costs worth considering. For instance, you might require an impromptu surgery just to discover your plan only covers 80 percent of the cost. This means you will dig into your pocket to cover the remaining 20 percent. The percentage might seem small until you are slapped with a $12,000 bill, meaning you are responsible for $2400. Add this to a deductible of 500 dollars or more; the cost is overwhelming.
Often when people talk about medical benefits, they only focus on the doctor visits rather than the drug plans. The employees and employers do not research on what value-added benefits might be provided by the insurance firm. The insurance firms offer this additional services as a way of promoting healthy lifestyles. This, in turn, results in healthy employees, bringing down the insurance claims. Such benefits can be helpful to your employees or family members.
are life, motor, property, accident, home and many plans that an insurance company will offer. It can get rather confusing to select one that is right for you. Forst oof all, you must consider what you want to be covered. For example, if you need to protect your home and its contents against theft or other disasters, then you can get a home policy. If you want to protect your vehicle against accident damage and also have medical expenses covered for the driver and passengers, you will need a vehicle insurance. Once you have decided what you want, then it is time to get in touch with an insurance customer service representative and find out more.
There are various insurance plans that have benefits that can even include a lumpsum payment back to you after a certain amount of time. For example, you may be able to get a medical or life insurance policy which you have to pay monthly for a ten year term and after that you may get some money back and even free insurance for an additional 5 years. Many of these benefits do have conditions which may include not having any claims on the policy for a certain time period.