Who Must Carry Construction Insurance and Why?

Who Must Carry Construction Insurance and Why?

Most states require that contractors and construction companies purchase some sort of insurance. Because of this requirement, companies can sometimes feel that having coverage is primarily a hoop to jump through rather than a valuable protection for them. If you are looking for Clifton construction insurance, it is important to understand who must be covered and why being insured is a good idea.

Who Must Be Covered?

Any contractor, construction business, or subcontractor must have some form of construction insurance. Essentially, anyone involved in commercial or residential building, remodeling, or repair must be covered. It is the responsibility of each one of these entities to obtain its own coverage from a licensed broker.

Why Is Coverage a Good Idea?

Construction insurance protects builders and project owners from potential damages or loss. For instance, liability insurance protects contractors and builders in the event that there is an injury or accident on their job site. On the other hand, various bonds that construction companies may purchase protect the project owner. A bond is backed by a financial institution and guarantees compensation to the project owner in the event that the contractor is unable to complete the terms of the contract.

As you navigate the Clifton construction insurance market, remember that all entities involved in building projects should be covered, and that coverage provides important protection from loss.

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