Types of Construction Insurance
A large construction site is a complicated affair requiring many crews of workers with their own specialized skill sets and tools. Because of that, a single project may require many different types of insurance.
- Liability Insurance – Because of the dangers inherent in the construction industry, liability is probably a contractor’s most important insurance purchase. It protects both the contractor and the building owner against financial loss due to on-the-job injuries.
- Builder’s Risk Insurance – This insurance covers a building while it is being constructed. Whether the damage is done by a careless worker or a natural disaster, it indemnifies the materials, fixtures, and equipment at a worksite.
- Performance Bond – Whether bankruptcy, inferior materials, or faulty workmanship is to blame, a performance bond will compensate the property owner if the contractor does not finish the job properly.
- Hold Harmless Agreement – This is a policy provided by a subcontractor to ensure that his work will be up to par.
- Bid Bond Surety – This is proof to the owner that the contractor will finish the job up to the standard laid out in the contract at the price he bid.
Call Agape Brokers Insurance Agency to find out more about business insurance in the San Jacinto Valley area.
