The hope is that construction projects always go smoothly safely, on time, within budget and with no unexpected losses. While proper planning and oversight can make this happen more often than not, the reality is things occasionally go wrong. Accidents can cause damage to people and property. Having the right insurance coverage is essential to your business. The two most common types are a builders risk policy and general liability.
Commercial General Liability
A GCL policy is best explained in that it covers events that happen to others which are caused by you or your employees. This includes any sort of damage to property owned by others. Another example is an injury that occurs to someone else. It is certainly critical to have insurance in case you are faced with these circumstances, but general liability may not be all that you need.
General liability coverage typically will not cover losses to your own property. This includes a building itself or the tools on site used to construct it. A builders risk policy fills this gap. It protects you against fire, theft and other issues harmful to your operation.
Understanding what can go wrong on a job site is important to knowing what insurance policies you need. Being covered in these situations is the key to protecting the financial health of your business.