Building a house, renovating an office, or opening up your dream restaurant can be very exciting but unfortunately, it can also be extremely risky if you don’t have the right insurance in place to protect your investment. When it comes to construction insurance, the right policy can save you from having to start over if your building materials are damaged or destroyed while they’re still on the construction site, or if you’re unable to finish building due to weather damage or other unexpected events.
Are there limits to what you are covered for?
Yes and no. There are typically stipulations to what you are covered for, such as maximums on how much insurance will pay out in a given year. Make sure to check your policy and ask questions so that you fully understand everything that is or isn’t covered by your construction insurance plan. Often people think they’re covered when they aren’t, which can be costly if something happens in your business and you don’t have enough coverage to pay for it.
Some additional things to look out for are whether or not your business is covered while transporting materials. You’ll also want to ensure that any workers you employ aren’t excluded from coverage. These things often come up if a worker gets injured on-site and either has no insurance or Business Insurance it doesn’t cover their injury. In that case, you would be responsible for all of their medical bills, loss of wages, and other damages.
What are some tips when buying construction insurance?
If you own a home or are a property owner, then you will certainly want to get insurance. If you don’t have it already, then it’s time to start looking into construction insurance before your next project starts. Construction projects can bring up many issues. Without good insurance, you could be stuck footing some of those bills on your own when things go wrong in your building or renovation process.
Although construction insurance is something that may seem like a no-brainer, there are many things you should consider. For example, if you’re building or renovating your home, you need to determine what your project will entail in terms of risk and whether or not it will be covered by your policy. You’ll also want to think about things like rental insurance and general liability for others who may be involved in your construction process.
Is my builder liable if I get hurt during the build?
The short answer is yes. The builder has a duty of care to ensure that you are safe while at their site, and if they don't meet that obligation, they can be liable if you get hurt. However, some key factors might change how much liability they face. Depending on what you're doing on-site when you get hurt, your legal responsibility may also come into play. Let's take a look at a few scenarios.
As you can see, your legal liability is highly dependent on what kind of duty of care you were owed at your Commercial Tenant Insurance site. Unfortunately, it's not always clear whether that duty of care exists. This is why being able to identify your potential exposure by speaking with a reputable construction insurance company before building starts is vital. If a prospective builder can't clearly outline their obligations to you and those they work with in writing, you may want to consider pursuing another contractor or changing projects altogether if you're concerned about what might happen if something goes wrong.
Am I insured if someone gets hurt on site after I finish building?
Contractors are responsible for providing workers’ compensation insurance, which protects their employees from injuries sustained on site. They may also be required to purchase a commercial general liability policy, which covers them in case someone else is injured on-site or property is damaged. A contractor should check with their state licensing agency and/or insurance agent to learn what types of insurance they need and how much they should have.
A homeowner who hires a contractor should check to make sure they’re properly insured before work begins. They may be held responsible if someone is injured or property is damaged, even if it occurs on-site after construction ends. Homeowners can learn more about coverage and liability in their state by contacting an insurance agent or visiting their insurance department's website.
Construction insurance premiums vary greatly depending on factors like risk, geographical location, and policy type. For example, contractors with poor safety records might pay more for workers’ compensation coverage than others because they pose higher risks of injury to employees. Homeowners can lower their costs by shopping around for different quotes from independent agents and using discount coupons when applicable.
