Why Prince George Contractors Need Course of Construction Insurance

Why Prince George Contractors Need Course of Construction Insurance

April 11, 2024 / 5 mins read

Course of construction insurance protects you as a Prince George contractor when you’re building a commercial, residential, or industrial building project.

You’ll also hear course of construction insurance called builders risk insurance. This type of insurance for Prince George contractors ensures that your project is protected during the construction phase, from start to finish.

Your Western Financial Group business insurance expert will give you top-notch commercial insurance advice and ways to save on insurance for your Prince George contracting business.

What is course of construction insurance?

Course of construction insurance provides insurance coverage for a building, job site, and construction materials during the construction phase, including renovation and repair.

This type of insurance usually begins before the first materials arrive on the job site and ends once your project is complete.

Why you need course of construction insurance

As a Prince George general contractor, commercial property owner, or property developer, you need to have course of construction insurance to protect what you’re building from start to finish, whether it’s a residential, commercial, or industrial project.

Your typical contractor’s insurance policy would not cover buildings under construction, which is why you need course of construction insurance coverage.

How course of construction insurance can help you as a Prince George builder

A course of construction insurance policy typically covers risks, including:

  • Burglary, theft, vandalism, and damage caused by malicious acts
  • Fires, explosions, and lightning strikes
  • Windstorms, hail, excessive rain, natural disasters, and floods
  • Damages caused by the impact of a vehicle or an aircraft
  • Collapse of a structure under construction

What doesn’t course of construction insurance cover?

Course of construction insurance doesn’t cover poor workmanship, mistakes, or negligence.

What kinds of projects can course of construction insurance cover?

  • Small residential builds
  • Commercial construction projects
  • Large high rises
  • Multi-family units
  • Single-family dwellings
  • Residential and commercial
  • Rebuilds
  • Municipal projects

How much does course of construction insurance cost for Prince George contractors?

The cost for course of construction insurance will depend on factors such as:

  • The type of construction
  • The value of the project/materials
  • How long the project is expected to last
  • Any past claims
  • Security measures

How course of construction insurance/builders risk insurance can protect you

1. Vandals deface the Prince George storage building you are constructing with graffiti and destroy parts of the building. Course of construction insurance would help cover the costs of removing the graffiti and repairing the damage.

2. A fire starts in the building where your construction materials are and the building and materials are destroyed. Course of construction insurance helps cover the cost to replace the materials and restore the storage building.

3. A windstorm tears some of the roofs of multi-family dwellings you are building in Prince George. Course of construction insurance would help cover the costs of repairing the damage.

As a Prince George contractor, make sure you have the right contractor insurance package to protect your business

Here’s what you need:

Commercial general liability (CGL) insurance

CGL insurance protects you against claims that allege third-party injury or property damage, such as a client/supplier getting injured on your Prince George job site or their property getting damaged.

Without CGL insurance, you would be responsible for paying any liability costs.

It wouldn’t be uncommon for Prince George contractors to have a minimum of $2 million in CGL insurance.

Professional liability insurance

Professional liability insurance is also called errors and omission (E&0) insurance.

If you are faced with a lawsuit as a Prince George contractor, professional liability insurance can help protect you against loss in the event of a lawsuit due to a negligent act, or an error or omission in the course of your services.

Tools and equipment insurance

It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use in your work as a Prince George contractor.

Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.

This type of insurance can also be called equipment floater insurance instead of equipment and tools insurance.

Commercial Auto Insurance

You need commercial auto coverage as part of your insurance package. Your personal car policy will not cover you should you get into an accident while travelling to work in and around Prince George.

Mobile property insurance

If you regularly move equipment across different locations in Prince George, mobile property insurance provides coverage for property that you don't store at a fixed location, or for equipment routinely taken offsite.

Mobile property insurance covers transit and theft that could happen due to property not being stored in a secure location, as opposed to commercial property insurance that covers property generally expected to be in a designated location.

What do I do if there’s a claim against me as a Prince George contractor?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your course of construction insurance and the right commercial insurance for you as a Prince George contractor. Our experts are available now to help you navigate the business insurance journey to protect you as a contractor.

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