Construction project coverage is written by a specialized subset of insurance carriers that understand the unique risks of building sites. While general liability carriers often sell to contractors, true construction project coverage requires underwriters who evaluate soil reports, change orders, and construction phases. BLDAssure works with these specialized markets to ensure your project is protected by policies that actually fit the work being done. For additional details, review the Guides contractor licenses bonds.

Specialized Carriers for Builder's Risk

Builder's risk insurance is a first-party policy that covers the physical structure during construction. It is distinct from standard property insurance because the building does not yet exist. Carriers that specialize in this line, such as FM Global and AmTrust, underwrite based on the completed value and construction type. They look at the specific materials and the timeline to determine the premium. This specialized approach ensures that the policy pays for the actual work in progress, rather than just the land or existing structures.

General Liability Markets for Trades

General liability insurance protects contractors from third-party bodily injury and property damage claims. Many carriers write this line, but construction-specific carriers understand the nuances of trade-specific risks. For example, a roofing contractor faces different exposure than an electrician. BLDAssure compares policies from multiple carriers to show you what each one actually covers, not just the price. This allows you to select a carrier that aligns with your specific trade and risk profile.

Surety Bonds and Financial Security

Surety bonds are a three-party agreement that guarantees a contractor will complete a project. They are not insurance in the traditional sense, but they are a critical part of construction project coverage. Carriers and surety companies like Propeller Bonds provide bid, performance, and payment bonds. These bonds protect the project owner and ensure that subcontractors and suppliers get paid. BLDAssure integrates with surety partners to place these bonds on the same account as your insurance, simplifying compliance for public and private projects.

Workers' Compensation for Construction Crews

Workers' compensation is required in most states for businesses with employees. It covers medical costs and lost wages for employees injured on the job. Construction is one of the highest-risk industries, so carriers must be comfortable underwriting high-hazard classes. Some carriers specialize in construction workers' comp, offering better rates and more flexible terms for trades. BLDAssure helps you find carriers that write your specific trade, ensuring you get the best possible coverage for your crew.

How to Choose the Right Carrier

Choosing the right insurance carrier for construction project coverage requires more than comparing prices. You need to look at the carrier's financial strength, their experience with your trade, and the specific terms of the policy. BLDAssure provides a platform where you can compare coverage from multiple carriers side by side. This includes limits, deductibles, and exclusions. By using this data, you can make an informed decision that protects your business and your projects.

Key Takeaways

• Builder's risk insurance is a specialized line that requires carriers with construction underwriting expertise.
• General liability carriers vary in their understanding of trade-specific risks.
• Surety bonds are a critical component of construction project coverage, distinct from insurance.
• Workers' compensation for construction crews requires carriers comfortable with high-hazard classes.
• BLDAssure compares policies from multiple carriers to show what each one actually covers.
• Choosing the right carrier involves evaluating financial strength, trade experience, and policy terms.

Frequently Asked Questions

What is builder's risk insurance?

Builder's risk insurance is a first-party policy that covers the physical structure during construction, protecting against damage from fire, theft, and weather.

Who writes construction-specific general liability insurance?

Specialized carriers like FM Global and AmTrust write construction-specific general liability insurance, understanding the nuances of trade-specific risks.

Are surety bonds the same as insurance?

No, surety bonds are a three-party agreement that guarantees a contractor will complete a project, while insurance is a two-party contract that covers losses.

How does BLDAssure help with construction insurance?

BLDAssure compares policies from multiple carriers to show what each one actually covers, helping you select the best fit for your trade and projects.

What is workers' compensation in construction?

Workers' compensation is a required insurance policy that covers medical costs and lost wages for employees injured on the job, with construction being a high-risk industry.