Construction insurance describes comprehensive coverage policies that protect against property damage, third-party injuries, or damage claims. Construction insurance can seem a little bit complicated at first, and it is more of a complex plan than some other policies. It is crucial to evaluate your specific risk profile and consult your insurer to advise you on a proper protection plan. To help you on the journey of understanding this plan, you can use this guide to learn how it can serve your construction business.

Public Liability Insurance

Public Liability (PL) insurance is a common type of business insurance that covers claims that arise from injuries or property damage to third parties (non-employees). Most industry workers are constantly performing their duties near other people and/or their property, so having PL insurance is important. This is the protection you will need to call on for those potential lawsuits that are all too common in this line of work. Note that this coverage must be renewed on an annual basis.

Product Liability Insurance

Product Liability insurance will protect construction businesses from liability for injury to individuals or property resulting from products you supply, manufacture, or import. With any of these products that you give to them, consider the importance of this cover.

Employer Liability Insurance

Employer Liability (EL) insurance protects against liabilities to employers for employee injuries or illness. EL is vital for just about every employer and is even helpful for injury to volunteers or sub-contractors if they present a claim against you as an ’employer.’

Contractors All Risk Insurance

Contractors All Risk insurance will be your protection for physical damage to the work itself and the site materials you contracted out to use for projects. Since these losses are typically excluded under a regular Public Liability policy, contractors should consider their risks of causing damage to a part of the property they were contracted to work on. This policy will offer full coverage of the costs associated with recovering the damage.

Plant and Equipment Insurance

Hired-in plant and equipment

This covers leased equipment that you are responsible for if it is lost or damaged (not if it breaks down), as you entered into a contract with the third party who owns the property.

Owned plant and equipment

This protects any plant you own yourself that needs to be repaired or replaced (may include temporary site buildings and security devices).

Professional Indemnity Insurance

Professional Indemnity insurance would be your protection against claims for loss or damages caused by professional negligence (including negligent advice).

For contractors who offer their professional advice or hold design responsibility for a site, it will be the same to secure this coverage.

Structural Warranty

This will warrant building owners’ protection from “latent defects” (defects that take place throughout the build period but are not discovered until after completion) to building structures.

About Thayer Innes and Freeman Bunting Insurance Agencies

At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we strive to provide comprehensive insurance solutions to support Ann Arbor homeowners. Our homeowners’ policies can be tailored to meet your specific risk exposures and provides much more coverage than a traditional policy, giving you the peace of mind you deserve. For more information about our products, contact us today at (855) 395-6316.