Protect your construction project with HUB Builder’s Risk Insurance Solutions
A complete turnkey solution for builder’s risk insurance on frame and non-frame construction projects.
Learn how HUB’s shared economy solutions can help your business
As the shared economy space continues to evolve, so do your risks. It’s important to work with specialists who understand the industry and can address your specific needs.
Construction Insurance FAQs
Consider factors related to the policy:
- What is the difference in coverage between the policies? Does one policy cover something the other policy doesn’t?
- Are you comfortable with the deductible?
- Are the limits sufficient?
Consider factors related to the insurance companies:
- How long has the insurance company been in business? How long have they offered construction insurance?
- Do they understand my business? How much experience do they have?
- What is their credit rating? Do they have a strong reputation for great customer service, risk control capabilities and claims settlement when it matters most?
A broker should make your life easier. First, you’ll want to be sure the broker has other clients with businesses like yours. This means the broker is familiar with the construction industry and its risks and can knowledgeably advise you on the coverages. They should have experienced experts to handle both your insurance and Contract Surety needs. Additionally, the broker has access to the broader marketplace and can get quotes from a number of insurance companies. Your broker should serve as a resource, helping you review contracts and introducing you to certified risk managers who will partner with you to develop and implement an effective risk management program. Finally, a broker must be equipped to advocate on your behalf in case of a claim.
Construction insurance is essential for contractors to protect themselves, their employees and their assets from the inherent risks associated with construction projects. It helps ensure compliance with legal requirements, fulfill contractual obligations and maintain a secure and reputable business operation.
- Compliance – Most contractors initially purchase insurance and choose their limits to satisfy contractual obligations and legal requirements.
- Protection - Contracting businesses face a variety of risks; third-party bodily injury, third-party property damage or other unexpected events can put the financial well-being of a contracting business in peril. It is essential that contractors and their businesses contractually transfer these risk exposures through construction insurance policies.
- Risk Management – A proactive insurance and risk management program will help a contractor eliminate, control and transfer risk and level the cost of risk financing.
If your business involves multiple construction trades, it is crucial to have comprehensive construction insurance coverage tailored to your specific needs. An experienced insurance broker can help you assess your risks, determine the appropriate coverage levels and select insurance policies that provide adequate protection for your construction business.
Construction insurance can take many forms to protect contractors, subcontractors, project owners and other professionals involved in construction projects. These include but are not limited to:
- Commercial General Liability / Wrap-up Liability
- Builder’s Risk / Course of Construction Insurance
- Equipment Breakdown Insurance
- Professional Liability (Errors & Omissions)
- Contractors Equipment
- Automobile Liability
- Pollution Liability
- Workers’ Compensation
Although they are not insurance policies, Surety Bonds are also very important for contractors. Surety Bonds are a type of financial guarantee that ensure contractors fulfill their contractual obligations. There are various types of surety bonds including bid bonds, performance bonds and payment bonds, which provide assurance to project owners, subcontractors and suppliers.
Construction projects inherently involve both first-party and third-party risks; construction insurance policies can transfer these risks to the insurance company in exchange for a premium. In many cases, construction insurance is legally and contractually required before contractors can bid on work or commence a new project.
Although Surety Bonds are not considered insurance policies, they are also a contractual arrangement that involves three parties: the principal (the contractor doing the work), the obligee (the party requiring the work) and the surety company (providing the bond). Contractors, suppliers, subcontractors and project owners require surety bonds to help protect their businesses and minimize risk during construction projects.
Yes, different construction projects come with varying insurance requirements to address their unique risks. As construction insurance comes in many forms, it is essential to carefully review contractual covenants to ensure compliance with various project agreements.
Builder’s risk insurance and construction liability insurance serve distinct purposes in the construction industry. Essentially, builder's risk insurance covers damage or loss to the construction project itself including buildings and structures that are under construction or renovation. This policy also covers the building materials and equipment used in construction projects. General liability insurance protects against third-party claims (legal actions) arising from construction activities due to property damage, bodily injury, completed operations or advertising injury.
Contractor's Survival Guide in a Hard Insurance Market
Learn how you can manage rising insurance costs and facilitate smoother insurance renewals.