Coverage that manages risks, controls costs and powers your growth.
Every construction site carries risks, from equipment damage and worker injuries to costly delays and legal disputes. Without the right protection, one setback can jeopardize your schedule, your reputation and your bottom line. Construction insurance helps you navigate exposures, control risk and recover from claims quickly, while safeguarding your projects and your team.
Common Construction Coverage Types to Consider
Mavrix provides insurance solutions for those who bring projects to life. From general contractors to specialty trades, our coverages protect your work, equipment, and team while keeping your business moving with confidence.
Taking Control of Your Construction Risks
The stakes are high in construction. Employee injuries, property damage, and lawsuits are ever-present threats. Although risk management practices promote workplace safety and reduce the risk of losses, unexpected events are always possible. All it takes is one bad day – one storm, one fall, one act of vandalism – to completely derail your project.
That’s why it’s so important to have appropriate construction insurance coverage. When you have policies that suit your projects and needs, you can be prepared for whatever comes your way while preserving your business relationships and controlling your costs.
Frequently Asked Questions
What type of insurance do construction companies need most?
Construction companies generally need many types of insurance. Under state law, construction companies typically need workers’ compensation insurance for any employees and commercial auto insurance for any vehicles. Contractors may also need general liability insurance to comply with state licensing requirements. While it may not be a legal requirement, a builders risk policy provides important coverage for ongoing projects. Other types of insurance may also be advisable, depending on your risks.
Before you decide to forgo other types of coverage, consider what would happen if your construction company suffered an uncovered loss. If a worker sued your company for discrimination and you didn’t have employment practices liability insurance, would the lawsuit bankrupt your company? If a ransomware attack shuts down your operations, could you recover without cyber insurance? Insurance provides stability, as well as peace of mind for your clients and business partners.
What does builders risk insurance cover for construction companies?
While property insurance covers existing property, it does not provide adequate coverage for ongoing construction. Builders risk insurance covers your building structure, building materials, and equipment while your project is under construction. It includes coverage for many perils, including theft, vandalism, hail, fire, storms, and lightning.
How much does builders risk insurance typically cost for general contractors?
The amount you will pay for builders risk insurance depends on the size and value of your project. Insurance for a huge project spanning multiple years will cost considerably more than insurance for a small project that’s complete in a couple of months. Although there are other underwriting factors involved, you should expect to pay roughly 1% to 5% of the total value of the project for builders risk coverage.
What does general liability insurance cover?
General liability insurance for contractors provides coverage for many common third-party lawsuits, particularly those involving bodily injury or property damage. For example, if your construction project accidentally damages a nearby building, you can seek coverage under your general liability insurance policy. General liability insurance for construction company owners also covers lawsuits involving claims of personal or advertising injury.
However, general liability insurance does not cover all lawsuits. For example, it does not typically cover lawsuits filed by employees – you’ll need workers’ compensation insurance for claims involving worker injuries and employment practices liability insurance for claims involving employment practices. Read your policy and talk to your broker to understand what else your general liability policy excludes and which other insurance policies you may need.
Is general liability insurance for contractors required by law for construction businesses?
Many states require contractors to maintain general liability insurance as part of the licensing requirements for contractors. If you do not comply with these requirements, your right to work in the state could be in jeopardy. You could also be on the hook for the costs of any lawsuits that occur. See your state’s licensing board for details and consider whether you need higher construction liability insurance limits to protect your company.