If you work on major construction projects, insurance is a must. But what kind is right for you? ALIGNED can help you answer this question. Below, we examine two common types of insurance for contraction projects: course of construction and wrap up insurance.
Course of construction insurance 101
Course of construction insurance, often referred to as builders risk insurance, is a type of commercial property insurance that covers a building for perils like fire, water damage, theft etc. while under construction, including when it is being renovated or repaired.
Wrap up insurance 101
Wrap up insurance is a liability policy that protects the pepople and companies working on a construction project from allegations of bodily injury and/or property damage to third parties during construction. This may include the contractors, subcontractors, engineers, architects, plumbers, electricians, and more.
Wrap up insurance vs. builders risk insurance
Wrap up insurance is a type of liability insurance that protects all contractors working on a construction project. In contrast, builders risk insurance is a form of property insurance that typically provides coverage against property damage for both the structure under construction and the equipment and materials on-site. As such, the two are entirely different types of insurance policies, both of which may be important for contractors to have and both are typically purchased together and often from the same insurer.
Types of construction insurance coverages
The term construction insurance is a broadly used term which is made up of numerous standalone products that coverage specific things and can include some or all of the following:
- Commercial general liability insurance: Commercial general liability coverage can protect your construction team against claims of third party bodily injury and property damage to third parties.
- Commercial auto insurance: Commercial auto insurance is useful if you use vehicles for business purposes, such as to transport materials to and from a job site. This coverage may include third party liability coverage, comprehensive coverage, uninsured automobile coverage, accident benefits coverage, collision coverage, and more.
- Course of construction insurance: Builders risk covers the property under construction and any business-related materials. Specifically, it protects the building and its materials from property damage caused by insured perils like water, weather, or fire.
- Umbrella liability insurance: Umbrella liability insurance takes effect when regular liability limits are reached, meaning it can protect your construction project against unforeseen or catastrophic events.
- Pollution liability insurance: Pollution liability coverage can safeguard your construction team from claims of third party bodily injury, property damage, or environmental damage resulting from your work.
- Professional liability insurance: Professional liability insurance, also known as errors and omissions insurance, can protect your team of professionals from claims of negligence, malpractice, error, or failure to deliver a service like design work, construction management, project management etc.
Find the right construction insurance for your project with help from ALIGNED
Whether you’re looking for course of construction insurance or wrap up insurance, ALIGNED can help you find it. We are commercial insurance experts, which means we can help you find great coverage in no time. Let us obtain and compare quotes on your behalf to ensure you get the best rate on your wrap up or builders risk insurance policy. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.