Understanding Contractor Coverage

Moore Farms & Insurance understands that general contractors operate in a complex and dynamic environment, and their responsibilities encompass various aspects of construction projects. To adequately protect themselves from the diverse risks they face, general contractors often require a range of insurance coverages.

Reach out to us today to learn more!

​1.     General Liability Insurance: General liability insurance is fundamental for general contractors. It provides coverage for bodily injury, property damage, and personal injury claims that may arise during the course of construction projects. This type of insurance protects against third-party claims, such as those from clients, subcontractors, or the public, and helps cover legal fees and settlements.
2.     Workers' Compensation Insurance: Construction sites are inherently risky environments, and accidents leading to worker injuries can occur. Workers' compensation insurance is crucial for general contractors as it covers medical expenses, rehabilitation costs, and lost wages for employees who are injured on the job. This coverage not only supports the well-being of the workforce but also protects the general contractor from potential legal actions.
3.     Builder's Risk Insurance: Builder's risk insurance provides coverage for damage or loss to a construction project during the course of construction. This includes protection for materials, equipment, and the structure itself. Since standard property insurance may not cover projects under construction, builder's risk insurance is essential to safeguard against risks such as fire, vandalism, or natural disasters.
4.     Commercial Auto Insurance: General contractors often use vehicles for transporting materials, tools, and personnel to and from construction sites. Commercial auto insurance is designed to cover the company's vehicles and drivers in case of accidents, property damage, or injuries sustained in the course of business-related driving.
5.     Professional Liability Insurance (Errors and Omissions): Professional liability insurance, also known as errors and omissions insurance, is crucial for general contractors providing design or consulting services. It protects against claims related to errors, omissions, or professional negligence that may occur in the design or planning phase of a construction project.
6.     Umbrella/Excess Liability Insurance: While general liability insurance provides coverage for a range of claims, an umbrella or excess liability policy offers additional protection by extending coverage limits beyond the primary policies. This is valuable in situations where a claim exceeds the limits of the underlying policies.
7.     Pollution Liability Insurance: Construction projects can sometimes involve activities that may lead to environmental pollution. Pollution liability insurance covers the costs associated with environmental cleanup, bodily injury, or property damage resulting from pollution incidents during construction.
8.     Subcontractor Default Insurance (SDI): Subcontractor default insurance is a relatively newer type of coverage that protects the general contractor from financial losses resulting from a subcontractor's default. This can include a subcontractor's failure to complete work, file for bankruptcy, or meet contractual obligations.

The construction industry poses diverse risks, and general contractors need a comprehensive insurance portfolio to navigate these challenges. By securing the right mix of insurance coverages, general contractors can mitigate financial risks, protect their assets, and ensure the successful completion of construction projects. Each type of insurance plays a specific role in addressing different aspects of the risks inherent in construction activities, contributing to the overall resilience and sustainability of the general contracting business.

​Working with a knowledgeable agency like Moore Farms & Insurance can help contractors optimize their coverage. Reach out to us today to learn more!