There are various kinds of insurance coverage available for construction projects. It becomes very essential for construction companies to select the one that provides them the maximum coverage based on their needs. Here is a look at some of the basic insurance coverage packages that construction managers can go for.

Builders risk type

Builders risk insurance offers coverage for the structure or to the building materials that are to be transported to the actual site or are to be installed. This insurance policy pays for the damages that fall within the coverage limit. However, the limit must accurately indicate the total value of the completed building or structure. This total value includes the value of labor costs as well as all the materials but does not include the value of the land. The budget of the construction of the building is one of the best sources for determining the limit of this insurance.

You can make arrangement with the insurance company how long the coverage would be. If under any circumstances, the construction process does not get completed in the mentioned time, the policy can be extended, but this can be done just once.

Builders risk insurance covers damages related to the insured structure. These damages can range from fire, theft, explosions, vandalism and so on. Collapse of the structure is subject to limited exclusions. Standard exclusions include employee theft, earthquake, water damage, and war.

General liability

General liability insurance provides protection to home builders, contractors, and re-modelers for issues like accidents, injuries, and property damages suffered while on the job. For this policy, you are required to hand out the proof of construction liability insurance prior to remodeling or repairing of the building. This kind of insurance becomes essential for residential buildings because there can be times when homeowners may feel the need of suing contractors for damages that can occur during the process of construction.

These are basically the types of construction insurance that you have to familiarize yourself. While you may think that you don’t need this, especially if you are involved in the construction business, then you may be making the wrong decision. So better consider getting an insurance for your construction business.