In plain and simple terms, builders liability insurance covers damage to property and bodily injuries incurred at a construction site being worked on by a builder. This type of insurance is a lot like car insurance in that it is required, specifically, it is required of builders before they can submit a bid for any project. The government requires it, and it makes sense to imagine private project owners require it too. But how much coverage is needed?
If you search for it online, you will see that there are many insurers out there that specialize in builders liability insurance. But just like anything else, not all of these insurance companies are created alike. Ideally, you should only do business with a company that is rated B, at the very lesser because that means the insurance company will not be going out of business anytime soon.
If you search for it online, you will see that there are many insurers that provide more or less the same coverage, however, they can – and do – differ in the premium you need to pay. In general, though, builders liability insurance is expensive and that’s the reason why there are companies that finance premiums for builders.
You should know what is employers liability insurance. You can use it to pay for the treatment of injuries that occurred at the construction site. Any damage to property resulting from work being done at the site is also covered. It doesn’t matter if the person injured is third-person or that the damaged property is owned by a person who has nothing to do with the project. As long as it happened at the construction site, it’s covered. Of course, this does not mean there is no limit to the coverage.
The builder sets the limit and works with the insurer on the retroactive date of coverage. If a claim is made because of an incident that happened before the date, it will not be covered.
Builders liability insurance is flexible in that aside from policy owners being able to use it to pay hospital bills and repairs, it could also be used to pay for litigation costs like attorneys fees in case the policy owner issued.
If you need builders liability insurance, make sure to get a quote from at least three insurers. Compare the premiums you need to pay versus the coverage amount. Also, compare the terms and conditions. As we mentioned before, this type of insurance is so expensive, indemnity companies are often needed to finance it, which is why you need to shop around.
Once you find more info about an insurer to work with, it will only be a matter of finding an indemnity company. How much you actually pay depends on how risky the work is.