This short guide will give you a quick look at what construction insurance is and the different types of policies available for builders and contractors.

1. "Demystifying Commercial Construction
Liability Insurance for Builders"
Exactly What is Construction Insurance?
Construction insurance is a special insurance that is designed specifically for
construction companies, home builders, and for commercial contractors. This
insurance policy will cover the risks that are involved during any construction
process that is taken up by the contractor or the construction company.
Construction insurance is mandatory for construction companies before they can
bid for any construction work in some states. The type of insurance and the
coverage amount that the construction company should have will be decided by
the states and tend to vary from one state to the other.
3 Examples of Construction Risk Insurance Policies
Construction insurance policies can be categorized into three main categories.,
they are:
• Construction Liability Insurance
• Commercial Property Insurance
• Construction Industry Bonds
Construction companies are required to cover varied aspects of liability during
the construction process by carrying specific insurance policies for their type of
industry. Various parties which are associated with the construction project have
to be protected and hence the need for construction liability insurance coverage.

2. Contractors and construction companies take both first party and third-party
insurance policies to ensure that they are able to cover most of the liabilities that
can occur during any construction process.
The following are examples of insurance policies that are used throughout the
construction industry. This classification is based on the type of liability that the
construction company can endure during the construction process.
Builder’s Risk Construction Policy:
A builders risk or course of construction insurance policy will protect the
construction company or the contractor from any loss that incurs due to the
damage of the project during the construction process.
Workers Compensation Policy:
This insurance is required by most states to cover for any injuries that might
befall on the employees while working on the project.
Commercial General Liability:
This is a type of liability insurance that will protect the construction company or
the contractor from any claim that is raised by third parties who have suffered
personal injuries or damage to their property due to the construction project.
Contractors Pollution Liability:
There has been a lot of emphasis given on pollution that happens during any
construction project. If the construction company or the contractor is not careful,
they will have to pay for environmental damages caused doe to the project. To
help cover such claims, contractors opt for the pollution liability insurance.
Commercial Automobile Insurance:
General automotive insurance will not cover the automotives and heavy
equipment that are used in the construction business. Specialized automobile
insurance has to be taken for vehicles that are used on any construction site.
This insurance will cover any claims that might arise due to injuries or damage to
property caused by these vehicles.
The insurance policies that are taken by the construction companies and the
contractors will differ based on the state and the type of construction project.

3. 5 Common Contractor Liability Insurance Policies:
Let us have a look at the five common types of construction insurance policies
that are opted by the contractors and construction companies.
• All risks insurance
• Professional indemnity insurance
• Latent defects insurance
• Public liability insurance
• Product liability insurance
Having the proper coverage will not only protect you and your business but it
might also help you get the chance to bid on jobs that would require you to have
insurance.
Getting construction liability insurance coverage is easy so don't delay, get the
coverage you need today. A great online resource for contractor insurance is:
SADLER Contractor Insurance: http://www.Contractor-Insure.com/
Article Published By: Gemma-Leigh Garner
Article Republished at: AJN News