Understanding the Kinds of Construction Insurance

Whether you own a large, commercial construction business or you are a specialized subcontractor, you probably know that you must carry some form of insurance in order to do business. Clifton construction insurance companies may offer a variety of coverage options, so it is important to understand them. There are three commonly offered possibilities: general liability, builder’s risk and bonds.

General Liability

General liability insurance safeguards contractors and construction companies from damages in the event that an accident occurs on their jobsite. Whether the accident results in property damage or injury to a third party, liability insurance protects the business and can sometimes help cover necessary legal costs.

Builder’s Risk

Builder’s risk coverage protects the building site and any tools or materials being used during construction. It covers against damage from fires, vandalism, and theft. Windstorm and flood damage can usually be added as well. Keep in mind that builder’s risk insurance is for new or remodel work, multiple job sites, and even materials that are being transported to the job site.


Clifton construction insurance agencies might also offer various bonds. Bonds are guarantees to the overall project owner that are backed by a financial institution. If a contractor or builder is unable to complete the terms of the contract, the bond offers payment to the owner. Along with liability and builder’s risk insurance, bonds are an important part of an overall insurance package.