Construction insurance is the term used to refer to a particular type of insurance which reimburses any damage to a building or property while it’s under construction.
Buildings under construction are susceptible to myriad risks including fire, high winds or vandalism, so any prospective construction client should seek out a construction insurance policy that should be implemented prior to when the construction activities begin.
This coverage usually ends when the property is close to being sold or when there is a new occupant in the building or expiration of policy terms.
Types of Construction Insurance
- All Risk - As the name suggests, construction risk insurance encompasses any physical damage to the property and site materials. The agreement usually entails the particular requirements including which specific risks are insured against and the average amount of insurance coverage.
- Construction Liability - Here you will have protection against any damage or losses incurred as a result of professional negligence. This involves a contract that details the consequences that will result from lack of sufficient skill, care and diligence when overseeing the design of a project.
- Construction Risk Management - This type of insurance indemnifies any damage incurred to property under construction or injury to an individual as a result of products manufactured or supplied by a business.
- Construction General Liability- This policy provides broader coverage for any type of accident that might occur on a construction site that could injure an innocent party or cause damage to any of their property.