In order to prevent construction accidents from damaging your building and its fixtures, it’s important to take the necessary precautions before construction begins. One of these safeguards is buying construction insurance in New York City, or anywhere else in the state for that matter. Why should you consider buying this type of insurance? How do you know which policy is right for you? Read on to find out!
1) What Is Construction Insurance?
For contractors who engage in commercial construction projects, one of their biggest risks is an accident. In order to protect your business from potential losses, it’s important to understand what construction insurance covers—and what it doesn’t. The basic idea behind construction insurance coverage: If a worker gets injured on site and can’t return to work for at least 30 days, you could be out some money. This will likely lead to a dip in revenue and more expenses on your end as well. That said, construction insurance policies generally don’t cover every single kind of loss you might face while working. Natural disasters resulting in property damage Negligence or acts of workers damaging someone else’s property Equipment theft Intentional injury or damage caused by customers Driving accidents Liability-based injuries Not all policies are exactly alike; that’s why it’s so important to know exactly how much construction insurance coverage (for things like equipment) you’ll need before diving into specific policy details. Also keep in mind that most companies offer special pricing plans when purchasing multiple years’ worth of coverage at once.
2) Why Do You Need It?
When you’re a contractor, there are many types of insurance you can invest in. You may have thought about property insurance, general liability insurance, or even workers’ compensation—but what about construction insurance? Although it seems like a no-brainer, construction and commercial contractors don’t think to buy construction insurance until they need it. Learn what exactly construction insurance covers and why your business should consider investing in it. Here at Pamphile Insurance Brokerage LLC, we provide construction insurance so that your business doesn’t have to go without coverage in case an accident happens. With our expert team, you know that your policy will be covered from top to bottom! Call us today for more information: (516) 323-8558.
3) How Does It Work?
Construction insurance, or builders risk insurance, offers coverage against liability if someone gets hurt on your property during construction. It also protects you if damage occurs to neighboring structures and possessions. In order to qualify for a policy, you must be actively working on construction of a building; homeowners whose house is under construction won’t be eligible. For commercial buildings, there are three main types of insurance: contractor’s all-risk coverage, builder’s all-risk coverage and named peril coverage. Although they cover different things and offer different amounts of protection, they can also be purchased together in what’s called comprehensive builders risk coverage. Each type may have exclusions that exclude some risks from being covered (such as pollution) so it’s important to read through each one carefully before choosing which kind best fits your needs.
4) If a Builder Doesn't Have Their Own Policy
When you’re in need of a new home or just about any kind of construction work done to your existing property, it’s important to be aware that all construction workers are legally required to carry their own insurance. If they don’t have their own policy and something happens on site, that’s when things can get messy. It’s also worth being aware that some contractors and builders may not even have insurance, which is illegal. If so, then you’re taking on an uninsured risk as well as a legal liability should anything go wrong. I’ve Got My Own Policy: Even if a builder does have their own policy, it’s wise to check what exactly is covered and what isn’t.