Construction Insurance in Peabody, MA

Construction insurance is essential for contractors and builders because it offers critical financial protection against a wide range of risks inherent to construction projects. Without proper insurance, contractors could face significant out-of-pocket expenses, legal liabilities and even business closure in the event of a major incident. Additionally, many clients and regulatory bodies require proof of insurance before work can begin, making it not only a safeguard but also a prerequisite for doing business.

What Types of Construction Insurance Policies Are Available?

The following are common types of construction insurance policies available for contractors and builders:

• General liability insurance

• Workers’ compensation insurance

• Builders risk insurance

• Commercial auto insurance

• Professional liability insurance

• Contractor’s equipment insurance

• Umbrella liability insurance

• Pollution liability insurance

• Inland marine insurance

What Is the Difference Between Builders Risk Insurance and General Liability Insurance?

Builders risk insurance and general liability insurance serve different but complementary purposes in construction. Builders risk insurance is a property insurance policy that can help cover buildings and structures under construction, including materials, equipment and fixtures on-site, in transit or temporarily stored elsewhere. It protects against losses from events like fire, theft, vandalism and certain weather-related damage. In contrast, general liability insurance focuses on third-party claims for bodily injury, property damage and legal expenses arising from the contractor’s operations. For example, if a passerby is injured by falling debris, general liability would cover the claim. In essence, builders risk can protect the project itself, while general liability protects against harm caused to others.

What Are the Common Exclusions in Construction Insurance Policies?

Construction insurance typically excludes coverage for the following types of damage:

• Normal wear and tear

• Faulty work

• Design errors

• Acts of war

• Intentional damage

Learn More

For construction insurance near you, contact Consoles Insurance Agency.