One thing many New York contractors have in common is inadequate insurance. This issue can become quite evident if someone files a third-party lawsuit (perhaps after a motor vehicle accident) or sues the company for damages that occurred during a project. There are numerous types of construction insurance, each providing unique coverage for a multitude of issues.
Not only is it important for contractors and developers to obtain as full coverage as possible through various types of insurance, but it is also critical to know where to seek support if a construction dispute or defect claim arises. Experienced guidance and support are the keys to resolving legal problems in a swift and economically feasible manner.
6 types of construction insurance for contractors and developers
The following list provides a basic overview of the most common types of insurance that contractors and developers can purchase to protect their businesses if construction disputes or third-party lawsuits occur:
- General liability insurance protects against third-party injury or property damage, as well as installation damages and issues like copyright infringement.
- Errors and Omissions insurance protects construction company owners against “quality of work” lawsuits.
- Contractor tools and equipment insurance covers repairs or replacement of lost, stolen or damaged goods.
- Builder’s risk insurance covers damage to structures under construction, caused by vandalism, weather or fire.
- Workers’ compensation insurance must be purchased by construction companies with at least one employee to cover medical bills and provide other benefits following workplace injuries.
- Commercial auto insurance provides coverage for company vehicles that become involved in a motor vehicle collision.
Full construction insurance coverage is always best. For some things like commercial auto insurance, there may be state laws or requirements regarding minimum coverage allowed and other issues.
Make informed decisions regarding construction insurance
It is always best to seek clarification about New York construction laws before purchasing insurance. Any contractor or developer currently facing legal problems regarding a third-party lawsuit or other insurance-based issues may seek guidance from a construction law attorney.