Construction insurance is a lot like wearing a helmet on site.
Our brokers have over a decade (ok – more like two or three) of experience insuring construction projects, let us help protect you from risks both in and outside of your hands.
Whether you’re a contractor, a construction manager, or a builder – obtaining a variety construction insurances can be essential to the success of your project / business. There are a variety of risks that exist for Contractors to be aware of.
At Collis Insurance Services Group, we help review your operations, and the risk exposures specific to your company, and then tailor an insurance program designed specifically to your organization’s needs.
Scenarios and Examples – Why You Need Construction Insurance
You are building a new house for a client
A fire starts at your construction project site in the middle of the night and also burns down two neighbour buildings around it. The construction project building itself needs to be rebuilt and you are legally liable for damages to the surrounding buildings.
Construction equipment and building materials go missing
Roofing shingles get delivered to site at the end of the day for installation. When you return in the morning, some of your equipment, tools and building materials are no longer there…
What Does Construction Insurance Cover?
Construction Insurance is a bit of a generic term, that can be used to describe all types of insurance needed for all types of contractors. However, we are extending this to include Course of Construction / Builder’s Risk coverages specifically needed by General Contractors, Building Contractors and Renovators.
The following list are examples of common coverages needed by Contractors of all types sizes.
Contractor’s Commercial Package
For building contractors or renovators, there are a variety of common coverages that are needed for most companies. After this basic package is in place, then we would customize further for adding Builder’s Risk / Course of Construction exposures as needed.
We would start with Commercial General Liability, Contents/Stock/Equipment coverage that stay at your premises and then add on appropriate Tools / Equipment coverage. Typically, we will also add on a customized Contractors Extension endorsement, which would add-in coverage to provide needed coverages like – Installation Floaters, Property in Transit, Rental Tools/Equipment, etc.
From there, if the Contractor is doing New Builds or more substantial renovations, we would look at either extending the same policy to allow for Builder’s Risk coverage – or look at covering the Course of Construction separately on a project-by-project basis, as needed / desired.
Commercial General Liability
Commercial General Liability is the primary insurance that all Contractors need to protect their business. Whether you need coverage at a specific limit contractually to get onto sites for clients, leasing space, or just being a prudent business owner – all businesses need this coverage. Whether it is while a building is being constructed, or even just regular day-to-day operations – there are a variety of risks that can possibly lead to bodily injury or property damage to someone else. Commercial General Liability protects your company financially in these instances, by covering legal and medical costs as well as any judgements / settlements. No matter how careful you are, accidents can happen.
Contractor’s Equipment or Tool Insurance
If you are a contractor, as you know losses of tools / equipment are unfortunately not a rare event. In fact, a survey found construction sites experience an average of two thefts per year with losses averaging almost $2000 for tools. Contractors Equipment Insurance helps transfer the risk of large losses to the insurer, while the smaller losses (under or close to the deductible) become the insured clients’ loss. Insuring these items allows you to get back to your jobs quicker and with fewer financial losses. There are also related types of losses in these areas, like costs for renting replacement tools / equipment, hiring special tools for projects that Contractors Equipment Tool coverage can extend to cover.
Builder’s Risk
Also known as course of construction insurance, this policy protects you and your business against damage to buildings while they are under construction or (substantial) renovation.
Coverage is usually written on an “All Risks” (ie. except what is excluded) basis and typically applies not only to property at the construction site but also to property at off-site storage locations and while in transit.
The Builders risk limit is based on the reconstruction value of the fully completed project. The policy term is based on anticipated construction time frame of the specific project. eg. 4, 6, 9, 12 months. Caution is needed in choosing the term of the coverage. Depending on the insurer, the cost can increase if an extension is needed. Further, if you take too long of a term, the remaining premium is non-refundable, if the construction is completed early.
Different insurers offer different built-in coverages in these policies, along with different exclusions and warranties. For more detailed information on Builder’s Risk coverage, click here: Course of Construction Insurance – Collis Insurance
Construction Equipment Breakdown Insurance
While a building is being constructed, there is a very real risk of accidental breakdowns occurring to electrical systems, heating systems, etc, that can result in costly damage, loss of revenue, interrupted operations and delays, and additional costs to repair or replace. Construction equipment breakdown insurance pays for the repair or replacement of the building and equipment for specific perils not typically covered in property Policies or the Course of Construction policy. All kinds of equipment are vulnerable to a wide range of breakdown exposures during construction such as electrical systems, AC systems, heating systems and more.
Commercial Auto/Truck Insurance
When a vehicle is used for carrying any type of tools / equipment / building materials – the policy needs to be on a Commercial auto policy rather than Personal auto basis. This policy protects you financially from auto collisions, covers damage to your vehicle and provides funds to defend yourself legally, whether or not you are at fault.
What are the Benefits of Construction Insurance?
- Financial Protection – A small cost for a big benefit.
- Peace of Mind
- Clients/customers have more confidence in you.
- At Collis Insurance, you get the best value.
Types of Businesses that need Construction Insurance
- Contractors
- Commercial Developers
- Home owners
- Builder owners
See for yourself what clients have to say about us
FAQ
FAQ
Have a question? Don’t hesitate to reach out!
(403) 265-5475
Or send us a chat below!
Do all construction projects need insurance?
Although insurance for construction projects is not required by law, it will be likely required by the bank / funders. Sometimes this project insurance is covered by the Contractors, sometimes the homeowner. Additionally, without insurance, associated expenses and fees of unexpected accidents can pile up quickly which can put your business at risk.
How much does construction insurance cost?
The cost is dependent on a variety of factors, some of which include the size of your business, years of experience, training, your annual revenue, type of project, building materials, specific limits and coverages needed for your business.
How do I make sure I’m getting the right insurance coverage for my business?
Our brokers take time to understand your true professional/business needs, risks, and more to provide a tailored policy and additional protection areas that fit your business insurance needs/budget.
Have a question?
Your trusted Collis Insurance Business Insurance Broker can help and also offer additional coverage for consideration, like Cyber & Privacy Liability, Legal Expense Insurance, and other relevant coverage.
Other Resources for Construction Projects and Managers: