Construction insurances are required on every single construction project. Construction insurances can provide coverage for material, risks, natural disasters, employees and even your own business. However, the insurance industry along with the construction industray are always looking to comprehend and provide the latest coverage on every single and unique situation. Here you will find the most common insurances used in the construction industry.
1. Liability Insurance
Liability insurance will protect contractors, home builders and remodelers against injuries, accidents or property damage suffer on the job
2. Builder's Risk Insurance
The builder's risk insurance policy will pay for damages up to the coverage limit. The limit must accurately reflect the total completed value of the structure (all materials and labor costs, but not including land value).
3. Performance Bond
A performance bond is usually issued by a bank or an insurance company, both of which act as a “surety.”
4. Hold Harmless Agreement
The Hold Harmless agreement is commonly provided by the subcontractor to the contractor, builder, or others related professionals insuring against all work being executed by the subcontractor.
5. Bid Bond Surety
6. Flood Insurance
Flood insurances typically have a queue of 30 days, before entering its coverage period, to avoid insurance solicitations only when a flood event is expected.
