Benefits
A good construction liability insurance policy protects your business from lawsuits or damages made by claims during the construction process. The most important advantages of the benefits of having liability insurance are:
- It will protect your business against injury and/or property damage.
- Liability insurance will assist you in covering costs and damages after a judgment has passed.
- It provides a certain level of value and security knowing that your assets and employees are protected.
- It can be used to cover the cost of attorney fees, witness fees, court expenses, and more.
- The construction liability will protect in many different ways: your company as a whole and individual claims against the company.
The policy can be taken out in the joint names of the contractor and the owner to cover construction projects ranging from small houses to construction of roads, bridges, dams, tunnels, energy power units and many others.
The Material Damage Section of our policy provides cover for the contract price, the cost of the materials or items to be supplied by the principal, the construction plant and equipment, the construction machinery and clearance of debris.
Save Up to 27% in Contractor Insurance All Risk With AmeriAgency. With More Than 20 Years of Experience, We’re Sure We Can Help!
How Type of Construction Materials Affects Builders Insurance Rates
The higher quality the construction, the lower the risk and relative insurance premiums on the project. For example, a construction with a steel frame can withstand damaging perils like wind and fire compared to a wood structure. Although most residential projects are wood construction, they are also typically the most expensive to cover.
Additional factors that can impact the cost of builders risk insurance include duration of the project and your deductible amount. For example, a construction time beyond 12 months will increase your cost due to paying premiums over a longer period of time. Low deductibles can also increase your premium.
All of these factors will determine the ultimate cost of insuring your project and where it falls on the one to four percent of project cost range. For example, if you are building a $1 million home located in a flood zone, you use low quality materials, and the duration of the project is 12 months, your premium could reach the high end of the range at four percent, or $40,000. However, a $100,000 home built with high quality materials, and not in a flood zone, might be one percent, or $1,000.
Save Up to 27% in Contractor Insurance All Risk With AmeriAgency. With More Than 20 Years of Experience, We’re Sure We Can Help!
For more information, call us at 1-888-851-5572. If you would like to receive a fast and free quote, visit us on our webpage!
