Course Of Construction Insurance Is Better Than General Liability

Course of Construction Insurance is also known as Builder’s Risk Insurance.  It is property coverage and provides protection for your building and equipment during construction.  General Liability is for a very different purpose. It covers you for claims for damages from a client or third party.  As each gives you coverage for different things, the ideal situation is to have both.

Let’s look at the details of what these insurance types provide.

What is General Liability Insurance?

Accidents happen on building sites, even on those that follow the most rigorous of safety standards.  An accident can result in you being sued for damages.

Coverage

General Liability covers you for the following types of damages:

• Bodily injury. A person injured on your premises can claim for their loss as a result of the injury.

• Property damage. Damage you cause to another person’s property in the course of your operations is covered.  An example is if a chimney falls from your building and damages your neighbor’s building.

• Reputation damage. This covers you if you are sued for libel, slander, violation of privacy, amongst others.  An example is being sued for publishing a picture of a client’s home without permission.

• Advertising mistakes.  If you infringe on the copyrights of others, you could be sued.  An example would be using a brand name of a supplier without their explicit consent.

• Medical payments.  Liability Insurance will cover the medical costs of a client or third party that is injured on your site.

There are also exclusions to General Liability Insurance, such as intentional damage, illegal activity, and damages as a result of your poor workmanship.  Injury to an employee is also excluded and is by Workers Compensation.

General liability is mandatory in almost all States, as is Workers Compensation.

What is Course of Construction Insurance?

This insurance is property replacement coverage. It is specialized coverage available for certain types of construction projects.  This includes the refurbishment, renovation or restructuring of an existing building.  It is also applicable to the construction of new buildings. It typically covers all the participants in a project.

Coverage

Course of Construction Insurance is tailored for each policy according to the needs of the project.  Some examples of the coverage that can be included are:

• Fire Damage.  Fire on construction sites is a frequent occurrence. Common causes include temporary electrical installations, hot work and cooking equipment.

• Theft.  Equipment, tools and materials are regularly stolen from building sites.  This insurance assists with the replacement.

• Adverse Weather. High winds often cause damage to in-progress buildings, such as blowing down hoarding or an unsecured roof.

• Temporary Structures.  This insurance can protect scaffolding and fencing.

• Profit. Your policy could protect you from loss of profit caused by project delays, building ordinance changes or covered events.

This is not an exhaustive list.  Your policy should include coverage for the risks your unique project is exposed to.

Add Course of Construction Insurance to Your Insurance Portfolio

Course of Construction Insurance is not mandatory but it provides very valuable coverage. It closes many of the gaps not covered by General Liability and Workers Compensation. At Builder’s Risk.net our agents are experts and will write you a policy for your unique project. Call Builder’s Risk at 877 960 0221.