Residental Builders & Commercial Construction Insurance

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Do You Need Cover for Residential and Commercial Construction?

The construction industry is demanding and exacting. Pressure from clients can feel excessive, and there are never enough hours in a day to keep up with your daily necessities.

The last thing you need is more difficulty, but it is easy to become bogged down with facets of the job that others can handle. Your insurance cover is one area of your business where you can rest assured things are in place. You can trust that Connect Business Insurance will provide the protection you need at an affordable price.

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What Kinds of Insurance Is Available?

There are a number of types of cover that are important for those in the residential and commercial construction industries. As you are aware, the construction world is fraught with uncertainty and the potential for danger. Guarding yourself, your workers, and the general public from unforeseen harm is a part of your due diligence as a construction professional.

While each project you work on is unique, there are several categories of insurance cover that a professional in the residential or commercial construction industry should consider. These categories include:

CONSTRUCTION AND BUILDERS INSURANCE

This is an insurance policy that is relevant for commercial construction companies, as well as residential builders.

You and your business have protection from loss or damages during building as well as any damage caused as a result of the construction.

A construction and builder’s insurance policy generally comes in two-parts.

  1. Protection of your property and assets during the constructing of a building. Areas covered in this section of the policy include theft, accidental damage, and vandalism
  2. The second section of the construction and builder’s insurance cover addresses your legal liability concerning claims filed against you because of your construction-related activities
CONTRACT WORKS INSURANCE

The contract works policy will protect all sizes of construction companies during any part of the construction phase of their project. Builders can opt to take out contract works cover for a single project or an annual policy that will include a year’s worth of builds.

There are several different benefits to most contract works policies

  • Help with legal and defence costs if a claim against you goes to court
  • Destruction of tangible property
  • Public liability including products, sub-contractor, and cross liability
  • Product liability to cover loss or damage occurring because of your products after they are out of your hands
OWNER BUILDER INSURANCE

Taking on the role of owner-builder is a popular and money-saving option for those who possess the necessary skills. However, it is crucial for you to remember that as an owner-builder, you carry the same responsibilities as those of any construction company.

Unforeseen events could financially ruin you. This is why insurance designed to cover owner-builders is essential. It is vital that you speak with an insurance expert regarding what is best for you. Here are the three most popular types of insurance cover for owner-builders:

Type of Cover
Potential Benefits
Builder’s warranty insurance
All states do not permit owner-builders access to this policy. However, it covers you in the event that the work is incomplete or somehow defective.
Public liability insurance
You will want this cover to protect you if a third-party is injured or killed on your work site.
Owner-builder construction insurance
This policy protects you during the building of your structure. The policy typically will cover loss or damages due to theft, fire, storm, and water damage. Additionally, this policy covers acts of vandalism to your work site.
HOME WARRANTY INSURANCE (INDEMNITY)

This cover protects the owner from potentially disastrous issues such as:

  • An un-complete building contract
  • Failure on the part of a builder to correct flaws
  • Protection against issues caused by faulty design, unsuitable building materials, or poor workmanship
PROPERTY DEVELOPERS

As a property developer, you take on considerable responsibility for the projects you initiate. It is essential that you work with an expert to evaluate the extent of your insurance needs. At minimum you will want insurance cover that will encompass:

  • Financial expenditures during the initial phases of development
  • Materials used in building
  • Negligence on the part of your employees, contractors, or subcontractors
  • Theft or damage to property and materials
  • Public liability cover
  • Compulsory workers compensation if applicable
LATENT DEFECTS INSURANCE

Regardless of the amount of care and professionalism you exert on your construction projects, there is a reasonable chance that design flaws or materials failure occurs over time. In fact, many such issues take years to reveal themselves.

When these defects appear after the end of the defects liability period, you could face a costly nightmare trying to make the situation right.

A latent defects insurance policy will cover the cots of rectifying a problem due to a structural defect for up to ten years after the project completion date.

The latent defect cover can protect:

  • Body Corporate Members
  • Commercial builders
  • Developers
  • Residential builders

*Please Note*

The material offered here is for informational purposes only. It does not constitute legally binding advice and should not be a substitute for a consultation with an insurance expert.