Different Types of Construction Insurance You Could Consider

If you plan on embarking on a construction project, it would be pertinent to get construction insurance. This type of insurance offers various policies that will cover a myriad of risks, ranging from natural disasters on the site to injuries to your employees, damage to materials and more. In order to get the insurance cover that will satisfy your individual project's needs, you would have to be familiar with the options that are available to you. Here are some of the different types of construction insurance that you could consider.

Construction insurance for builder's risk

This type of insurance is also commonly known as course of construction insurance. This policy will cover your construction project while it is in the building stages. In addition to providing a risk cover to the construction as it is being erected, it may or may not also include any materials that are either on site or that are being transported to the site for use in construction.

Construction insurance for all risks

As the name suggests, this type of policy will provide a cover for physical damage to all the materials on site and the construction building. This type of insurance cover can be taken out either by the owner of the project or the contractor whose services have been enlisted. The cover will then enumerate the precise risks that are being covered as well as the amount that would be paid in the event of damage. It should be noted, though, that although this insurance cover can be taken out by either the owner or the contractor, both names of the individuals would have to appear jointly in the agreement that has been drawn up.

Construction insurance for professional indemnity

This type of policy will cover any liabilities that will come about due to professional negligence from the contractors. Some of the risks that can be included in this policy include breaching contractual obligations that have been set out between you and the contractor, incompetence from the contractor's skill sets, design flaws in the construction and more. This type of construction insurance is usually taken out by the owner of the construction site as well as other professionals working on the project such as engineers, architects, the building contractor and so on.

Construction insurance for product liability

This type of policy will cover any damages to property or injuries to people in relation to products that are being used on the site. For instance, if there is a faulty lift on the site and one of the construction workers become injured, the supplier of the equipment will have to pay for damages through this type of insurance cover.

For more information and to select the best options for your project, contact a local construction insurance company.