Construction Insurance in Vermont
What is construction insurance?
Working in any part of the construction industry comes with certain risks, and it's important to protect against the potential property and liability perils that a business faces. One way that construction businesses in Vermont can protect themselves is by purchasing construction insurance.
Construction insurance is specialized commercial insurance for contractors and construction businesses. Policies typically cover accidents, vehicles, equipment and more.
What Vermont businesses should have construction policies?
Most Vermont businesses working within the construction industry should have a construction policy. All types of contractors can usually benefit from the protections that this insurance affords.
For example, the following contractors and construction businesses would likely find that a construction policy meets their needs well:
- General contractors
- Specialized subcontractors
- Heavy contractors
- Artisan constructors
- New home builders
- Residential construction businesses
- Commercial construction businesses
Policies are broadly available for businesses of all sizes working in this industry. An insurance agent who specializes in construction policies can likely help everyone from solo carpenters to major developers find the coverages they need.
What coverages are available through construction policies?
Construction policies normally offer a variety of protections, including both construction property insurance coverages and construction liability insurance coverages. Property protections primarily guard assets, such as facilities and equipment, against damage and/or loss. Construction liability insurance coverages primarily protect against lawsuits that could be filed against a business.
Some of the construction property insurance protections that are readily available include:
- Building Coverage, which might protect business-owned offices, storage facilities and other buildings
- Inland Marine Coverage, which might protect equipment, tools and materials as they're moved to/from worksites
- Builders Risk Coverage, which might protect equipment, tools and materials when they're at worksites
- Mobile Equipment Coverage, which might cover non-vehicle yet mobile equipment (e.g. forklifts, backhoes, excavators, etc.)
- Extra Expense Coverage, which might cover facility rental costs following certain qualifying disasters
Some of the construction liability insurance protections that are available include:
- General Liability Coverage, which might cover common accidents occurring at facility locations and worksites
- Professional Liability Coverage, which might cover errant work and advice that employees are responsible for
- Employee Practices Liability Coverage, which might cover discrimination lawsuits that employees could file
- Commercial Umbrella Coverage, which might cover expensive liability lawsuits with secondary protection
Should construction businesses purchase workers compensation insurance?
Workers compensation insurance usually helps pay lost wages and medical costs arising from job-related injuries. Vermont state law generally requires businesses across industries to have workers compensation if they have employees.
Thus, most construction businesses need to purchase workers compensation that covers their employees. Workers comp may be purchased through a construction policy or apart from one, depending on the particular policy. The coverage is easy to procure in either case.
Do construction businesses need to purchase contract and construction bonds?
Construction businesses that work on larger projects, such as commercial buildings or new home developments, sometimes are required to purchase bonds. Contract and construction bonds normally provide a customer with reassurance that their project should be completed. There are a few different types of bonds that construction businesses might need:
- Bid Bonds usually ensure that a business that bids on a project will follow through and begin the project if the business is awarded the contract
- Performance Bonds usually ensure that a business that starts a project will complete the work as stipulated in the contract
- Payment Bonds usually ensure that a business that starts a project will pay its employees and subcontractors their due wages
Most of these and the other bonds that construction businesses could need are available from insurance companies.
How can construction businesses get quotes for construction insurance?
For help finding a construction insurance policy, contact the independent insurance agents at T.S. Peck Insurance. Our agents can help you request customized quotes from several insurers in the state, and we have the expertise necessary to help you select the best quote for your Vermont business.