Unfortunately, mishaps on construction sites are all too frequent. The combination of multiple activities with dozens or hundreds of people operating complex and dangerous equipment, often in poor or threatening weather, can easily result in accidental injuries to workers, clients, visitors, and onlookers, leading to litigation that could cost you millions – or even put you out of business.
Construction Liability insurance will pay for legal damages (and legal costs) for worksite accidents that cause; 1) loss, damage or destruction of property, and 2) physical injuries to third parties. Thanks to the explosive growth of lawsuits in the business world, almost all building contractors will need to show that they carry a Construction Liability policy before they’ll be allowed to bid for a job.
Contractors sometimes buy this coverage on a General Liability basis, up to the amount of the policy. However, they often prefer a policy that covers an individual project over a set time at a fixed dollar value, based on such factors as the number of workers or contract employees, and the size and nature of the operation. Some types of construction jobs – such as roofing, foundation work, and high- rise or large scale commercial projects with more workers per site – are more risky than others.
Your Construction Liability policy will probably set maximum amounts both on a “per incident” basis and for “umbrella” coverage. It should also include Personal and Professional liability for acts by company owners and managers, and cover damages from fire and medical-related claims from incidents on the job site that don’t fall under a standard Workers Compensation policy.
We’d be happy to review your firm’s exposure to the construction-related liability risks you face and recommend a comprehensive protection package that can help give you peace of mind on the job.