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Whether you’re an individual licensed builder, or running your own small business, it is important you have the right insurance to protect yourself, your property, and your work. Insurance for builders can help you have the funds to replace damaged tools or vehicles, protect your pockets from certain legal claims, and even win the business of uncertain clients looking for peace of mind during the construction process. In this article, we explain the most important insurance policies for builders that can boost client confidence.
Public and Products Liability Insurance
Building sites can be dangerous locations, and onsite injuries or collateral damage can easily occur. Public liability insurance covers builders in case of certain legal claims for personal injury or property damage. The builders should also ensure that they are covered for the work they will be undertaking (keeping in mind certain height restrictions).
Homeowners may prefer builders with this kind of insurance. If the builder is not covered, the client may find themselves personally liable for these claims, as they own the property where the work is being carried out.
Material Damage and General Property Insurance
Remember buying your first set of tools? At the time it feels like a very big purchase. Since then, you may have expanded your business by purchasing additional machinery, equipment and supplies. These items are an investment into your business; you’ll want to protect them. Material Damage insurance will cover your property from certain damage at a place you specify, such as a particular location or warehouse. Even better, General Property Insurance will protect your tools and equipment on the go, wherever you take them. You may also want to purchase Theft cover, to protect your gear from being stolen. But be careful, don’t leave your tools or construction supplies out in the open air – most theft policies don’t cover items in this situation.
Commercial Motor Insurance
As a builder, transporting supplies, construction material and even workers from one place to another is an important part of your average day. Protect your vehicle with Commercial Motor Insurance, to make sure you’re covered for repair and replacement if an accident takes place. You can find policies that range from a single vehicle to a whole fleet, and cover third party damage, fire and theft, or full comprehensive protection.
Workers Compensation
If you have employees who perform work on site, then you are required by law to purchase Workers Compensation Insurance. This insurance covers your employees in case they are injured at work. Exact requirements differ by state, so make sure you purchase a policy that meets the statutory requirements.
Builders Warranty
The law requires licensed builders to take out Builders Warranty (also known as Home Warranty Insurance). This insures the homeowner if a builder fails to finish the project for reasons such as death, or bankruptcy. Much like Workers Compensation, the requirements vary between States, so check the situation where you work.
As you can see, there are a lot of types of insurance that play an important role in keeping you properly covered. Consider bundling your insurance into a trades and services pack, or a small-business insurance pack, to cut down the hassle and save on costs.
Brought to you by Allianz Insurance
