Construction insurance can play a crucial role in the construction industry, offering financial protection against risks and liabilities that may emerge throughout a project’s lifecycle. Given the industry’s exposure to accidents, injuries, property damage, legal disputes and delays, having construction insurance is essential for contractors, builders and project owners.

What Is the Purpose of Construction Insurance?

Construction insurance is crucial for helping to protect financial interests, manage risks, comply with legal requirements, fulfill contractual commitments, bolster reputation and offer peace of mind. It can serve as an essential asset that significantly contributes to the overall success, sustainability and dependability of construction projects.

What Are the Types of Insurance That Are Most Relevant to Construction Projects?

The following are the types of insurance most relevant to construction projects:

• General liability coverage can help cover medical expenses, legal fees, settlements and defense costs related to lawsuits resulting from third-party bodily injury, property damage, product liability and advertising claims.
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• Professional liability coverage can help financially protect against lawsuits arising from errors or omissions in professional services.

• Builders risk coverage can help financially safeguard construction projects during construction or renovation. It typically helps cover the cost of damage caused by fire, theft, vandalism and severe weather.

• Workers’ compensation coverage can help with medical expenses and lost wages for employees injured on the job. It also can shield employers from potential workplace injury-related lawsuits.
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Customizing insurance coverage based on project specifics, involved parties (contractors, property owners, etc.), and property type is essential. Seeking guidance from an insurance professional is highly advisable.

How Much Does Insurance Cost for a Construction Company?

Coverage included in the ideal insurance portfolio can vary significantly between different companies. Cost factors generally include the type of business, its size, number of workers and chosen insurance options. Contact Crawford-Butz Insurance to obtain a quote for coverage.