Common Types of Construction Insurance Explained

If you are a property owner that is undertaking any type of construction project, there are a number of project-related items that you should strive to insure.

Additionally, the contractors that you enlist to assist you may have their own guidelines in place regarding various types of coverages. In this brief guide, we will outline the most common types of construction insurances that you may be required to obtain.

Morever, these types of coverages will include a brief explanation. If – after reading this guide – you have additional questions, you may contact us here at Modica Associates for more information.

  1. Builder’s Risk Insurance – This type of insurance is also referred to as “Course of Construction” or “COC” insurance. It is coverage for various types of structures that are directly under construction. Examples of items that may be covered include the materials used for building, the foundations, temporary types of structures, fencing and various other types of outdoor fixtures, lawns, and items planted or directly installed by those that are performing the construction.
  2. General Liability Insurance – This type of insurance is also referred to as “Commercial General Liability” or “CGL” insurance. This provides exceptional liability insurance protection to businesses should bodily harm or any type of property damage occur when construction is occurring on-site. Examples of coverages include workmanship that is considered to be “faulty”, any type of injury that occurs on the job, and even defamation. When obtaining this type of insurance, be certain to read the policy closely to determine any type of exclusions that are present.
  3. Contractor License Bonds – This type of coverage is a form of an agreement. It states with a full guarantee that a contractor will act in full compliance with the various types of regulations that pertain directly to their individual license. In nearly all cases, the contractor is responsible for obtaining this type of construction insurance. It is a special bond that not only protects the contractor but also protects anyone that conducts any type of busines with the contractor, as well as anyone part of the general public. While considered a type of construction insurance in general terms, this is more or less a bond.

Contact Us Today

We here at Modica Associates offer construction insurance for both property owners and contractors. Regardless of your individual needs or your business needs, we have you covered.

In addition to the insurance types outlined in this brief guide, we also offer various types of personal insurance, business insurance, transportation insurance, property insurance, vehicle insurance, business loss insurance, and more!

Simply contact one of our agents today and we will work closely with you to make certain that you obtain the insurance that you need – regardless of your construction project.

Whether you are a property owner, a small artisan contractor, a mid-sized contractor, or a contractor that has a large operation of practices in a trade that is deemed “high risk”, we can help! Call us today at: 718-855-1836

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