Course of Construction Insurance and General Liability give coverage for different types of risks. The first is for property replacement and the second is to cover your costs when you are responsible for the losses incurred by another party.
Why have Insurance?
When you buy insurance you are essentially transferring the risks you face to another party. If that risk materialises, then the other party pays the cost and not you. Imagine all the risks you face on your project are a big pie. Different forms of insurance protect different slices of that pie. If you don’t have protection for some of the slices, when that risk occurs you will have to pay the costs from your own pocket.
When you have Course of Construction Insurance and General Liability Insurance you have covered a large part of that pie. Let’s talk through the risks each covers.
Course of Construction Insurance Coverage
This insurance is also known as Builder’s Risk Insurance. Every policy is tailored for each unique project. There are common inclusions in many policies, and optional ones that can be included if your project needs them. Examples are:
- Adverse Weather
- Building Ordinance changes
- Soft Costs
Our agents at Farmer Brown are experts and will talk through the policy options with you so get the right coverage for your unique project.
General Liability Coverage
This covers you for damages incurred by another party as a result of your actions. The types of damages it covers are:
- Bodily harm
- Property damage
- Reputation damage
- Advertising damage
- Medical payments
- Damage to premises rented by yourself
There are some exclusions to General Liability such as if damage is caused by illegal activity, or poor workmanship.
Is it mandatory to have insurance?
General Liability Insurance is mandatory in most States. Litigation in construction is becoming more and more common and courts are awarding large settlements in many cases. This insurance pays for your legal defence as well as assisting with the settlement costs.
Course of Construction Insurance is not mandatory but is often a requirement from clients. It gives a client reassurance that if something goes wrong you will have the funds for the replacement costs. A Course of Construction policy also covers all participants with a financial interest in the project – the contractor, subcontractor, owner, lender – so the project as a whole is protected.
Where can you get your Course of Construction Insurance?
Insurance can be complicated and it is always best to speak to experts that know the industry well. Farmer Brown has been operating for more than 20 years and our agents can help with all your construction insurance needs.
Some of the reasons you should choose Farmer Brown Insurance are:
- Our customer service is excellent, as seen in our 5 star reviews
- We represent a network of A-rated insurance carriers
- We’ll get you the right coverage at the lowest prices
Call Farmer Brown Insurance on (888) 973-0016 and put us to the test.