10 Construction Insurance Mistakes to Avoid 

Construction Insurance

10 Construction Insurance Mistakes to Avoid 


This article illuminates the ten common mistakes businesses make when navigating this crucial aspect of buying construction insurance.



The ultimate form of humanity is finding the sweet spot between perfection and imperfection. But in an industry like construction, where a simple error can be the catalyst to bigger problems like a ruined business reputation, a building collapsing, or even death, you cannot afford to let error be to humans. This is where construction liability insurance and construction insurance come in. 

Picture This: 

Your construction company is in the throes of bringing an architect’s vision to life. Every brick laid, every nail hammered, is a step towards that dream project. But in this intricate dance of creation, uncertainties lurk in every corner. 

From an unexpected storm damage to your newly erected structure to an unforeseen accident at the site, the ramifications can be financially devastating. That’s where construction insurance steps in, serving as a safety net, ready to catch businesses from free-falling into financial turmoil.

Now, Imagine Another Scenario:

A business acquaintance narrates their tale of woe. They thought they had done everything right and had every insurance paperwork in place, only to discover that their construction liability insurance didn’t cover a specific, costly mishap. 

A gap, a simple oversight, and their business were on the brink of a financial abyss. This dear reader, underscores a pivotal point—having construction insurance is crucial, but having the right construction insurance? That’s the game-changer. 

It’s the difference between a minor setback and a catastrophic loss. You can read more on this from our take on the value steps to evaluate construction business insurance needs

Safeguarding a construction business against unforeseen risks and liabilities isn’t just about ticking a box; it’s about understanding those boxes inside out. And while the market is flooded with information, not everything holds water.

The right construction insurance, tailored to each project’s unique challenges and risks, can be the bedrock on which businesses thrive. It shields not just against tangible damages but also fortifies the business’s reputation, ensuring clients’ trust remains unwavering.

So, as we delve deeper into the labyrinth of construction insurance and construction liability insurance, remember this: Mistakes aren’t just errors; they’re lessons. And in the upcoming sections, we’ll illuminate the most common pitfalls, ensuring your construction business remains not just insured but wisely insured.


10 Mistakes to Avoid When Buying Construction Insurance


Mistake 1: Not Understanding Coverage Needs 

With construction insurance, it’s simple: Generic doesn’t cut it. A one-size-fits-all approach to insurance can leave gaping holes in your protective armor. Different projects face different exposures. 

A coastal property might grapple with the threat of hurricanes, while an urban high-rise might have concerns about potential damages from adjacent constructions. Simply put, risks are as varied as the projects themselves.

Moreover, a mismatch between the risks and the coverage can have dire financial consequences. An uncovered event can lead to substantial out-of-pocket expenses, potentially derailing the project’s financial viability. 

And if that’s not enough, investors, clients, and even potential tenants or buyers often gauge a project’s reliability through its risk management strategy. You need comprehensive, tailored coverage to boost stakeholder confidence, enhancing the project’s reputation and marketability.

The solution is crafting a custom coverage construction insurance policy that provides: 

  • In-Depth Risk Assessment: Before diving into the world of “construction insurance” or “construction liability insurance,” begin with a meticulous risk assessment of your project. Engage with professionals who can spotlight specific vulnerabilities tied to your project’s location, design, materials, and scale.
  • Policy Exploration: Once charted the risk landscape, delve into the various insurance offerings. This could range from general construction insurance to more specialized options like “course of construction insurance” or policies covering “floor protection during construction.”
  • Continuous Re-evaluation: As the project progresses, its risk profile can evolve. Regularly review and adjust the coverage to mirror these changes, ensuring protection remains relevant throughout the project’s lifecycle.

Also, collaborate with insurance brokers, consultants, and possibly legal advisors specializing in construction. Their expertise can guide you in aligning your project’s risk profile with the optimal insurance coverage. Besides, they offer invaluable insights.


Mistake 2: Underinsuring in Construction Projects

Underinsurance refers to securing an insurance policy that doesn’t offer adequate coverage relative to the potential risks of a construction project. It’s a bit like wearing a raincoat with holes during a downpour: while it may provide some protection, it’s far from comprehensive.

For instance, many employers and business owners, especially those new to the nuances of risk management for construction, opt for lower premiums because it seems like a prudent financial decision. And while it’s true that reduced premiums can lead to immediate savings, the longer-term ramifications can be dire.

Take, for instance, a real estate developer who opted for a limited construction liability insurance policy for a high-rise project. An unexpected windstorm can cause extensive damage to the site. The result? Staggering out-of-pocket costs that jeopardize the financial health of the business.

The murky waters of underinsuring can swiftly erode the safety net that is construction insurance, leaving businesses vulnerable to financial quagmires. To sidestep the pitfalls of underinsurance:

  • Conduct a Holistic Evaluation: Dive deep into understanding the full spectrum of risks your construction project may face. This spans general construction insurance considerations to specific types like “Construction Liability Insurance” or “Course of Construction Insurance.”
  • Get Expert Consultation: The world of construction insurance is vast and intricate. Leverage the expertise of seasoned professionals. While online platforms and individual brokers provide a wealth of information, engaging with multiple insurance experts gives you a 360-degree view of potential exposures.
  • Conduct Regular Policy Reviews: As a project progresses, its risk profile might evolve. Regularly reviewing and adjusting your coverage ensures you remain shielded against emerging threats.


Mistake 3: Overinsuring Construction Projects

The construction industry’s challenges can create a mindset where business owners believe that having more coverage equates to better protection. While the sentiment is rooted in safeguarding the project, it can sometimes lead to unnecessary expenses.

For instance, paying premiums for coverages that don’t align with the project’s risk profile means you’re pouring money down the drain. These funds could be better allocated to other areas, like procuring quality materials, hiring skilled labor, or investing in advanced construction technology.

And when you are over-insured, you risk becoming complacent, thinking you’re shielded from every conceivable adversity. This can lead to lax risk management practices on the ground. And what happens when a claim comes your way? 

Multiple overlapping policies can muddy the waters because determining which policy covers what can create unnecessary delays and complications. Paying for coverages you don’t need is a waste of money. So: 

  • Engage experts to conduct a thorough risk analysis of your construction project. This will give you a clear picture of the potential vulnerabilities, allowing you to choose coverages that genuinely matter.
  • Regularly review and fine-tune your insurance coverage to ensure it remains relevant and cost-effective. As your construction project progresses, its risk landscape can shift.
  • Seek advice from insurance brokers who specialize in construction. Their deep industry knowledge can guide you away from unnecessary coverages and towards a policy that’s a perfect fit for your project.


Mistake 4: Ignoring Exclusions

In construction insurance, the details matter immensely. While much attention is given to what an insurance policy covers, a subtle but significant aspect often goes unnoticed: policy exclusions. 

These are specific conditions or scenarios where the insurance does not provide coverage. Overlooking these leads to substantial unexpected costs and complications. Granted, insurance policies, by nature, are meant to cover specific risks. 

However, no policy can encompass every imaginable risk. That’s where exclusions come into play. In construction insurance, exclusions explicitly define what the policy won’t cover. This could range from specific types of damage, like acts of war, to certain work practices deemed too risky.

Understanding these exclusions is as crucial as knowing what the policy covers. It offers clarity, allowing businesses to anticipate areas where they might need extra precautions or seek additional coverage. So, what are the risks of overlooking exclusions?

  • Unexpected Financial Burden: If a liability or damage occurs under an exclusion and you weren’t aware of it, you’ll be shouldering out-of-pocket costs. This can strain finances, especially if the costs are significant.
  • Legal Complexities: Some exclusions may relate to legal mandates or standards in the construction industry. Ignoring these can not only result in insurance claims being denied but can also land a business in legal hot water.
  • Compromised Project Progress: Unplanned damages or liabilities can halt construction processes. Without the security blanket of insurance for such exclusions, the onus of resolution falls entirely on the business, leading to potential delays.

Here are strategies to navigate exclusions effectively:

  • Thorough Policy Review: Before finalizing any construction insurance policy, dive deep into the exclusions section. Understand each point and seek clarification if something is ambiguous.
  • Engage with Insurance Experts: Relying on expertise can be invaluable. Construction insurance specialists can offer insights into common exclusions and their implications. They can also advise on supplemental policies or endorsements to cover gaps.
  • Risk Management Integration: Incorporate the knowledge of exclusions into the project’s risk management strategy. This proactive approach can help anticipate and mitigate potential issues related to exclusions.

What’s not covered is as significant as what is. Be vigilant about policy exclusions and build a robust shield against unforeseen liabilities, ensuring your construction projects progress smoothly and efficiently.


Mistake 5: Not Checking for Sub-limitations

Another pivotal yet frequently overlooked aspect is the presence of sub-limitations in policies. Insurance companies use sub-limitations to manage risk exposures because certain events or damages are deemed higher risk or more frequent. 

And by setting sub-limits, insurers can maintain sustainable operations without excessively raising overall policy premiums. However, these stipulations cap how much the insurer will pay for specific claims, regardless of the overall policy limit. 

Missing out on these details can lead to unexpected shortfalls in coverage, impacting financial planning and risk management. Some of the potential pitfalls of ignoring sub-limitations are:

  • Financial Vulnerability: The most immediate risk is the potential financial exposure. If damages exceed the sub-limit, the policyholder must bear the excess cost, which can create unplanned financial stress.
  • Project Delays: A lack of adequate funds due to unanticipated coverage shortfalls can delay project timelines, impacting contracts, labor schedules, and overall profitability.
  • Reputation Risks: Failing to manage risks adequately, primarily due to oversight in understanding insurance coverages, can tarnish a company’s reputation in the competitive construction industry.

So, it’s imperative to dissect the policy further. You might find sub-limitations within its pages that restrict the payout for particular events or damages. For instance, while the policy might have a limit of $1 million, there could be a sub-limit of $250,000 for damages due to natural disasters. 

Such nuances can drastically influence the effectiveness and appropriateness of the insurance for your specific project. How do you address them?

  • Comprehensive Policy Scrutiny: Always read policies with a keen eye. Don’t just focus on the overarching limits; dive deep into the specifics to unearth any sub-limitations.
  • Consultation with Experts: A specialist in risk management for construction or an experienced insurance broker can help identify and explain policy sub-limits, ensuring you’re not caught off guard.
  • Regular Policy Updates: The construction landscape is dynamic, and so are the associated risks. Regularly review and update insurance policies, keeping an eye on sub-limitations to ensure they remain aligned with the evolving project scope. 

Always play the devil’s advocate and stick to the details. Stay informed and proactive; your construction businesses will be adequately shielded from unforeseen financial challenges.


Mistake 6: Neglecting Workers’ Compensation

Employee safety and well-being is paramount in any industry. That is why, beyond ethical responsibility, there lies a legal mandate: workers’ compensation insurance, a non-negotiable for businesses with employees.

At its core, workers’ compensation insurance provides benefits to employees who sustain injuries or illnesses due to their jobs. This type of insurance is especially crucial in the construction sector, where the work often involves physical exertion and potential exposure to hazards. 

Benefits can cover medical expenses, rehabilitation costs, and some lost wages during recovery. That’s why most states in the U.S. have clear stipulations requiring businesses with employees to maintain workers’ compensation insurance. 

The specifics may vary – some states may have exemptions based on the number of employees or the type of work – but the overarching theme is consistent: worker protection is a legal mandate. Ignoring it jeopardizes employee trust and can land a company in severe legal and financial trouble. But more than anything: 

  • It incurs Legal Penalties: Failure to provide workers’ compensation can result in hefty fines, penalties, and potential criminal charges in some states. The financial implications can be substantial, denting a company’s profitability.
  • Leads to Civil Lawsuits: Without workers’ compensation insurance, employers open themselves to potential lawsuits by injured employees. These can be costlier and more damaging than the insurance premiums themselves.
  • It causes Reputation Damage: In an age where company ethics and treatment of employees play a significant role in brand image, neglecting workers’ compensation can tarnish a company’s reputation, making it harder to attract clients and top talent.
  • Causes Operational Interruptions: Legal battles, injured employees, and financial penalties can disrupt day-to-day operations, potentially delaying projects and impacting contractual obligations. 

So, how can you ensure compliance and protection of employees through workers compensation? 

  • Stay Informed: Regularly update your knowledge on state-specific worker compensation requirements. Laws and mandates can evolve, and it’s essential to remain compliant.
  • Engage Experts: Consider working with an insurance broker or legal expert specializing in risk management for construction. Their insights can guide you to the best policies and ensure full compliance.
  • Prioritize Safety: While insurance is a safety net, proactive measures to enhance workplace safety can reduce the likelihood of claims. Regular training, safety protocols, and equipment checks can make a difference.

Neglecting workers’ compensation is not merely an oversight; it’s a significant risk for construction businesses. Prioritizing this insurance underscores a company’s commitment to its employees, ensures legal compliance, and positions the business as responsible and reputable in a competitive industry.


Mistake 7: Not Reviewing the Policy Regularly

The dynamic nature of construction is evident in every brick laid, every design adjusted, and every timeline redefined. As a project progresses, its parameters can shift, and new risks and exposures come with these shifts. 

Amidst this evolving landscape, the static nature of an unreviewed insurance policy can be a business’s Achilles’ heel. Here’s why regular reviews of construction insurance are not just recommended but vital for every prudent business owner.

Besides, no construction project remains rigid from inception to completion. Whether due to client requests, unforeseen ground realities, regulatory changes, or resource availability, deviations from the original plan are more the rule than the exception. 

And each of these changes carries risks, potentially rendering an initial insurance policy inadequate or obsolete. This is what you are risking when you are not keeping pace with project evolution:

  • Coverage Gaps: New liabilities can emerge as a project grows or changes. An insurance policy that seemed comprehensive at the outset might now have glaring omissions, leaving the company vulnerable.
  • Financial Repercussions: In the unfortunate event of a claim, discovering that the incident isn’t covered due to policy outdatedness can lead to significant out-of-pocket expenses, straining the project’s finances.
  • Contractual Breaches: Many construction contracts stipulate specific insurance requirements. As the project evolves, failing to adjust insurance coverage might result in breaches of these terms, potentially leading to legal complications.

So, what proactive measures can you take for seamless coverage?

  • Scheduled Reviews: Make it a standard practice to review the insurance policy at predetermined intervals. Whether quarterly, at project milestones, or after significant changes, these reviews can help identify potential coverage gaps.
  • Collaborate with Experts: A regular consultation with an insurance broker specializing in risk management for construction can provide insights into emerging risks and suitable coverage adjustments.
  • Stay Updated on Project Changes: Maintain open communication channels with project managers and
  • teams. Being in the loop about project changes ensures you can proactively adjust insurance coverage as needed.
  • Embrace Flexibility: Understand that insurance isn’t a one-size-fits-all proposition. As your construction project evolves, your insurance needs will too. Being open to making necessary changes can safeguard the project’s financial and operational health. 

Regular reviews ensure that the safety net of construction insurance remains robust and responsive, mirroring the project’s dynamism and shielding it from the unpredictable challenges of the construction world.


Mistake 8: Not Considering a Builder’s Risk Policy

Unlike other policies, the Builder’s risk policy is a sentinel during the building phase, defending against unforeseen perils that can jeopardize the construction’s timeline and budget. At its essence, a Builder’s Risk Policy is designed to shield property owners and contractors from potential losses during construction. 

Think of it as a specialized form of property insurance (or construction liability insurance) catering specifically to buildings under construction. It can cover many risks, from natural disasters like fires and storms to human-induced issues like theft and vandalism. Yes, builder’s risk insurance is more than just another insurance policy because:

  • It Fills the Coverage Void: General construction insurance might not always envelop the unique vulnerabilities of a building in progress. This is where a Builder’s Risk Policy steps in, offering targeted protection.
  • It’s a Financial Safeguard: Imagine a scenario where a nearly-completed construction site falls victim to fire or significant vandalism. Without a Builder’s Risk Policy, the financial fallout could be immense, potentially leading to crippling out-of-pocket expenses.
  • It Ensures Project Continuity: Construction is often bound by tight timelines. Unanticipated damages can cause delays, pushing projects off schedule. This policy ensures that monetary concerns don’t compound these delays, allowing for quicker recovery and resumption.
  • It Gives Stakeholder Confidence: Knowing a policy covering construction-specific risks can bolster confidence among stakeholders, from investors to future tenants or buyers.

That said, this is how you maximize the value of a builder’s risk policy:

  • Customize Coverage: Every construction project is unique, from its design and materials to its location and scale. Tailor the policy to fit the project’s specificities, ensuring comprehensive protection.
  • Stay Proactive: Don’t wait for a mishap to consider this insurance. Incorporate it into the initial project planning stages, ensuring coverage immediately.
  • Engage with Experts: Navigating the nuances of risk management for construction can be daunting. Collaborating with insurance brokers or consultants specializing in the field can offer invaluable insights, helping you tailor the best coverage for your construction business.

Builder’s Risk Policy is a foundational element for business owners serious about shielding their investments and ensuring smooth project execution. 


Mistake 9: Choosing the Lowest Premium

When it comes to construction insurance, the reputation and reliability of the insurer are just as important, if not more so, than the price tag. As the saying goes, “You get what you pay for.” Therefore, even as you look for ways to trim operational costs, selecting the construction insurance policy with the lowest premium is not the smart financial move. Here’s why:

  • Delayed or Denied Claims: One of the most significant frustrations business owners face is the delay or outright denial of claims. Insurers offering rock-bottom premiums might be cutting corners in their claim assessment and payment processes, leading to prolonged waiting periods or unfair rejections.
  • Subpar Customer Service: An insurer’s customer service reflects their commitment to their clients. Companies prioritizing low premiums above all else might not invest adequately in training and supporting their customer service teams. This can lead to miscommunications, misunderstandings, and dissatisfaction.
  • Hidden Clauses and Exceptions: To compensate for the low upfront costs, some insurers might pepper their policies with restrictive clauses, exclusions, and sub-limits. This can be a nasty surprise when an unexpected event occurs and you discover you’re not covered as you thought.

Conversely, a reputable insurer offers more than a policy, even if it is slightly more expensive. They provide peace of mind, assurance, and a safety net. This is the inherent value of  reputable construction insurance:

  • Trustworthiness: A well-established insurer with positive reviews and testimonials is likelier to stand by its promises, ensuring that claims are assessed fairly and promptly.
  • Expertise: Renowned insurers often have a team of experts adept at understanding the intricate needs of construction projects. They can offer invaluable advice on risk management and the best coverage options.
  • Transparent Communication: Reputable companies prioritize transparent communication, ensuring clients fully understand their policies, including any limitations or exclusions.

Still, while it’s essential to consider budget constraints, the lowest premium should not be the sole deciding factor. Instead, striking the right balance.

  • Research Insurer Reviews: Before committing, look up online reviews, testimonials, and industry ratings. A positive feedback pattern can be a reliable indicator of the insurer’s credibility.
  • Consult Industry Peers: Fellow business owners and industry peers can offer firsthand insights into their experiences with specific insurers.
  • Engage in Direct Dialogue: Reach out to potential insurers, ask questions, gauge their responsiveness, and assess the depth of their expertise.

Remember, in times of crisis, your insurance partner’s reliability, expertise, and responsiveness will matter far more than the few dollars saved on premiums.


Mistake 10: Failing to Discuss with an Expert

While the internet offers a treasure trove of information, the stakes are too high to rely solely on online insights regarding construction insurance. Bypassing expert consultation can be a perilous oversight for business owners. 

On the other hand, engaging with professionals can be the game-changer you didn’t know you needed. Why?

  • Construction insurance isn’t a monolithic entity; it’s an intricate web of policies, clauses, and conditions. Even the most diligent online research can instantly overlook nuances that seasoned experts would catch.
  • Insurance laws and guidelines aren’t static; they evolve in response to legal precedents, market conditions, and other variables. Staying updated with these shifts is a full-time job in itself — a job that insurance professionals undertake daily.
  • Online platforms might have hidden affiliations or vested interests, skewing the information they present. Unlike them, a reputed expert’s primary allegiance is to the client’s best interests.

With expert consultation, you engage with multiple experts, insurance brokers, consultants, or legal advisors, offering a 360-degree view of the risk landscape. This diversity of perspectives can identify potential blind spots, ensuring comprehensive coverage.

Additionally, every construction project carries its own set of unique risks. Experts, with their vast experience, can pinpoint tailor-made solutions that cater to your project’s intricacies. Experts can also guide business owners towards optimal policies, avoiding both over-insuring and under-insuring, leading to potential cost savings.

You can adopt a collaborative approach where your insights meld with professional expertise to craft a robust insurance strategy, safeguarding your construction endeavors against unforeseen adversities.


Construction Insurance Lays a Foundation of Trust

In the intricate tapestry of the construction world, every stakeholder, from the bricklayer to the business owner, plays a pivotal role. For those at the helm, like you, ensuring a safe and protected environment isn’t just about adhering to regulations but building trust. 

Central to this trust is construction insurance. But what is construction insurance in its essence? And how does it intertwine with critical concepts like risk management for construction or the specifics of a construction insurance policy?

Think of it as a tailored suit—a one-size-fits-all approach won’t cut it. Instead, the attire must be custom-made and fit your business’s unique challenges and risks. At its heart, construction insurance is a multifaceted shield, guarding against many unforeseen adversities. 


Construction Insurance Categories

Firstly, we have general construction insurance, your primary defense against common risks. It’s the foundational layer, much like the base instruments in our orchestra. Yet, as any seasoned business leader knows, depth and richness come from diversity. 

Cue in the specific policies, such as construction liability insurance that address more intricate challenges. Think of this as the soloists in your orchestra, each with a unique role and sound. Construction liability insurance, for instance, focuses on potential lawsuits from injuries or property damages during construction. But there’s more to the ensemble. 

The “Course of Construction Insurance,” often overlooked, ensures protection during the building phase. Imagine missing the timpani beats in a crescendo—it’s an oversight you’d notice. Similarly, leaving out this specific insurance could lead to gaps in coverage.

Then there’s the matter of errors and omissions insurance for unforeseen events. While the expertise of workers is invaluable, human error remains a reality. Contractor errors and omissions insurance is a testament to this, ensuring that inadvertent mistakes don’t escalate into financial burdens.

Furthermore, integrating risk management for construction into your strategy goes beyond just purchasing insurance. It’s about having a proactive approach. For instance, a meticulous construction risk management strategy will falter without the foresight to include construction liability insurance.

Measures like floor protection during construction might seem trivial, but they play a part in this broader risk management strategy, minimizing claims and ensuring project continuity. Understanding construction insurance isn’t merely about knowing its broad categories. 

It’s about delving deep, recognizing the nuances, and making informed decisions. Because, in the grand orchestra of construction, every note, every policy, and every risk management strategy contribute to the magnum opus.


But What if Something Goes Awry?

An unexpected calamity, a lapse in risk management for construction, or a misunderstanding of your construction insurance policy can become chaotic. Take, for instance, the “Course of Construction Insurance”. It might sound reassuring, but this policy can prove treacherous when not understood. 

It’s designed to protect against risks during the building phase. But, without a comprehensive grasp, businesses might overlook nuances, leading to heart-wrenching gaps in coverage. And while a robust construction insurance policy is pivotal, on-ground practices like floor protection during construction further minimize risks. 

It’s a symphony of strategic planning and comprehensive coverage, ensuring the show continues even if a string snaps. But eventually, the string will snap. So, these insights should help you conduct your construction business flawlessly.


Conclusion: Mistakes Aren’t Just Errors; They’re Lessons!

And understanding the coverage is only half the battle. Being prepared for unexpected challenges is not just wise—it’s imperative. Sure, navigating the complexities of construction insurance can seem daunting, but by sidestepping common pitfalls and remaining informed, business owners can ensure their projects and investments are robustly safeguarded. 

Remember, the goal isn’t just to have insurance but the right one. By understanding your specific needs, regularly revisiting your policies, and consulting with industry experts, you can build a foundation that’s strong in brick and mortar, confidence, and security. Your construction project deserves the best protection; ensure it gets just that.



What is construction insurance?

  • Construction insurance refers to a suite of insurance policies designed to protect businesses from risks associated with construction projects. This includes damages to the property, worker injuries, and other potential liabilities.

Why is underinsuring a significant risk?

  • Underinsuring means not having sufficient coverage for the potential risks of a construction project. If an incident exceeds your coverage limit, you’ll have to cover the remaining out-of-pocket costs, which can be financially devastating.

What are the dangers of overinsuring?

  • Overinsuring means paying for coverage you don’t need. This results in unnecessary costs and doesn’t provide any additional protection.

Why are policy exclusions important?

  • Exclusions are specific conditions or events that an insurance policy won’t cover. Being unaware of these can lead to unexpected out-of-pocket expenses when you assume you’re protected.

How do sub-limits in insurance policies work?

  • Sub-limits set a maximum amount the insurer will pay for specific claims, even if the general policy limit is higher. Awareness of these is crucial to ensure they align with your project’s potential risks.

Is workers’ compensation mandatory for construction businesses?

  • In most states, you must have workers’ compensation insurance if you have employees. It covers medical expenses and wage replacement for workers injured on the job.

Why should I regularly review my construction insurance policy?

  • As construction projects progress, the associated risks can change. Regular reviews ensure your coverage remains adequate and relevant to the project’s current phase and needs.

What is a Builder’s Risk Policy?

  • A Builder’s Risk Policy explicitly covers damages to a building while under construction. It protects against risks like fire, theft, and vandalism.

Why is the reputation of an insurance provider important?

  • An insurer’s reputation can give insights into their claim responsiveness, customer service, and overall reliability. A good reputation indicates that the insurer is trustworthy and offers genuine value.

How can I ensure I make the right decision with my construction insurance?

  • Engage with multiple insurance experts, brokers, and possibly legal advisors. They can provide comprehensive insights, helping you choose the best coverage for your project needs.