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What type insurance do I need for Construction?

By October 12, 2016April 4th, 2019No Comments

There are unique insurance products needed as a building project progresses.

Big or small, it is very important for you to talk to your insurance broker to make sure you have the right coverage for your specific project. Your broker can help to ensure that the project owner, contractor and any sub-contractors will have the coverage required in case anything goes awry.

What types of insurance might be required?

The two main types are Builder’s Risk and Wrap-Up Liability.

Builder’s Risk

Also referred to as Course of Construction Insurance, the Builder’s Risk policy can provide coverage for the value of the labour and materials at the project site during the different stages of construction.

Normally, the project owner and contractor will agree on a date that the project will be completed and ready for its intended use. In the beginning, there may not be as many workers and materials on site but, as the project continues, more is completed every day and the value of the building and materials on site start to increase.

If anything happens to the building or working materials at any time during the project, it can cause great financial hardship for any party involved, especially if the project gets delayed for any length of time.

The Builder’s Risk policy can compensate the owner and contractors for their investment in labour and materials in a project during the course of the construction for insurable losses.

Wrap-Up Liability

Wrap-Up Liability covers the legal liabilities of the owners, contractors and, in some cases, the consultants of the project. It protects the construction team against third party and general liability exposures that have to do with their specific project – all with one policy.

These policies are normally used on major construction projects or government projects. It provides uniform coverage and limits for all involved in the project. It stays in force from start to finish and then remains for a period of time after completion.

As the project owner or the contractor, make sure you know what your insurance requirements are. The above describes two main types but, depending on the project, you may need Environmental Liability (Pollution Liability) or other types of insurance.

Our brokers can customize a policy for you and your project and they will know the right Insurance Company to cover the specific risks you might encounter in your business. Contact Pearson Insurance today. Our commercial lines department will make sure you are covered.

At Pearson Insurance, you will deal with real people

These are people who will remember you. You will have the comfort of knowing that you will be able to deal with the same broker, so they know and understand your insurance requirements and concerns. We offer choice. We have a number of insurance companies that we can check to make sure you are getting the best policy for the best price. Our Brokers are licensed, professionally trained, and offer expertise that allows them to provide top notch customer service to protect what matters to you and your business. We can leave you with the peace of mind knowing that you are dealing with a brokerage that has been in business since 1935!
Why not come and meet our team. Just click here to see the friendly faces at the other end of the phone!

Sources:, Encon Group