Managing multiple construction projects at once is common for a general contractor. While this can lead to higher revenues, it also increases exposure to risk. That’s why it’s essential to fully understand your insurance coverage—and adjust it when necessary.
General Liability: Know the Limits
Your general liability insurance policy typically covers your activities, regardless of where they take place. However, be aware that certain exclusions may apply.
For example, specific activities like blasting, or high-risk locations, may be excluded. Additionally, if you change the scope of your services, it’s important to inform your insurer, as your coverage may need to be updated.
- Consider this example: you operate a lighting showroom and decide to start installing fixtures at clients’ homes without notifying your insurer. If damages occur, you might not be covered.
Important: Certain worksites may be excluded from your policy. A quick call to your broker could make all the difference.
Builder’s Risk Insurance: Protecting the Work Itself
During construction, the client’s property is exposed to various risks: fire, theft, weather damage, and more. That’s where builder’s risk insurance comes in—it covers material damages until the final handover.
There are two main types of coverage available:
- Blanket Coverage: All your projects are automatically covered.
- Project-Specific Coverage: Only the projects listed in the policy are protected.
Blanket coverage is ideal for contractors handling multiple small, similar projects. On the other hand, if you’re managing larger or more complex builds, it’s better to consider targeted, project-specific insurance.
Conclusion
Take the time to properly protect yourself. Every job site is unique, just like your insurance needs. Before starting a new project, speak with your broker to evaluate your options.
For any questions, do not hesitate to contact our brokers : 1 866 961-3553
