Despite your best efforts to protect building materials, any number of things can happen during the course of construction. Fire can destroy lumber and drywall, a severe storm can damage heating or cooling units, and custom-made cabinetry can mysteriously “walk away.” You may already have an insurance policy that offers coverage for business property and
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General Liability vs. Professional Liability: What’s the Difference?
When it comes to protecting your contracting business from claims and lawsuits, it can be tough to know what type of insurance you should purchase. Small companies can’t afford to pay for coverage they don’t need, so it’s important to know which policies you do need.
Liability insurance protects your business against claims for damages…
Professional Liability Insurance Explained
By Daniel Gray
Professional liability insurance provides contractors coverage from financial losses that happen as a result of their errors, mistakes, or negligence. Unlike general liability insurance — which protects contractors when their work leads to bodily injury or property damage — professional liability offers coverage in situations when their work causes another party to lose money.
For…
Additional Insured Endorsements & How They Work in Construction
By Thomas Tracy
An insurance policy rarely meets every contractor’s needs out of the box. Fortunately, endorsements offer one way to customize coverage. One of the most common endorsements you’ll likely encounter involves additional insured (AI) parties. In short, an additional insured is typically another business entity or person who can be added to your business policy, securing…
Errors and Omissions (E&O) Insurance Explained for Construction
By Daniel Gray
Errors and omissions (E&O) insurance covers contractors against financial loss resulting from mistakes, errors, or claims of negligence. While general liability insurance covers against claims related to injury or property damage, errors and omissions insurance protects from lawsuits related to financial loss.
For example, an electrical contractor who failed to properly wire a building may…
10 Best Insurance Companies for Construction Businesses
Whether you’re just starting your business or looking to change insurance carriers, it pays to go with a company that has experience and knowledge in providing insurance for the construction industry. These days you can purchase insurance on your own or go through a local agent. Online options allow you to purchase and bind your…
Why You Need Materials Financing in Your Back Pocket
By Dacia Idom
Having access to extra cash flow can eliminate financial barriers before they become roadblocks for your business. Even if you have enough cash today, financing your materials is a great solution to have in your back pocket for unexpected needs in the future.
…
What Is an Insurance Endorsement? A Contractor’s Guide
By Thomas Tracy
When working in construction, your insurance policy gets issued as a fairly standard contract. At the core, you have property coverage for your tools and equipment, along with a liability component that protects your financial assets in case there’s a work-related accident or injury that you may have some responsibility for.
Like a basic construction…
Texas ‘Retainage’ vs. ‘Reserved Funds’: What’s the Difference & Why it Matters
Retainage: It’s been a hot button topic in the construction industry for years. Given the slim profit margins on construction projects, retainage practices can be incredibly frustrating for contractors. However, it does provide some needed assurances and benefits to the project stakeholders.
In Texas, there are technically two different types of “retainage,” one…
Builder’s Risk vs. General Liability for Contractors: What’s the Difference?
By Daniel Gray
Construction businesses need many different types of insurance to mitigate the risks associated with building projects. Two of the most common insurance policies that contractors have are builder’s risk and general liability, which serve very different purposes.
Builder’s risk insurance, typically used by general contractors, covers property damage to a building under construction, while general…