What are the different types of insurance that a contractor should maintain and what do they cover?

Question

What will be an ideal response?

Answer 1

Workers’ Compensation Insurance. Provides benefits to employees or their families if they are killed or injured during the course of work.

Builder’s Risk Insurance. Protects projects under construction against direct loss due to fire and lightning. May also include windstorms, hail, explosions, riots, civil commotion, vandalism, malicious mischief, earthquakes, and sprinkler leakage.

Commercial General Liability. Covers negligent actions by the contractor and the company’s employees, and includes bodily injury, property damage or loss, and other personal injury such as slander or damage to reputation.

Automotive. Covers vehicles used on public roads including cars, trucks, portable office trailers used on the job site, and construction equipment driving on public roads, such as dump trucks.

Marine. Covers equipment used on waterways, such as barges and boats.

Inland Marine. Covers off-road construction equipment, such as backhoes, scrapers, and dump trucks not licensed for use on public roads.

Property. Covers real property (real estate) owned by the contractor, such as office buildings, shops, and warehouse.

Business Personal Property. Covers the contents of a building, such as computers and furniture.

Errors and Omissions. Covers liability arising from errors or omissions by the designers.

Umbrella. Goes on top of all the company’s insurance, increasing the limits of coverage.

Life. Pays in the event of the death of a key employee.