When planning a commercial construction project, you’ll need to secure insurance to cover any possible risks. With different types of insurance available, it can be challenging to determine which policies you need. To simplify your construction project, here’s what you should know about four of the most common types of commercial building insurance.

What Types of Commercial Building Insurance Do You Need?

1. Liability

If you’re a property owner, contractor, or construction company, general liability insurance will protect your assets if your project faces liability claims for incidents such as bodily injury, property damage, faulty workmanship, and advertising injury. It’s sometimes called commercial general liability insurance or contractor general liability insurance. The majority of construction firms need general liability insurance to receive a contractor’s license. Similarly, many subcontractors need general liability insurance to be able to work for a general contractor. 

2. Property

Property insurance protects the tools, construction materials, equipment, computers, and other business property you use during a commercial building project. A commercial property insurance policy will only cover the property when it’s in your office, warehouse, worksite, or other covered location. You’ll need another type of property insurance called inland marine insurance to protect your property when it’s being moved to and from a covered location. Most property insurance also covers lost income and assists with ongoing expenses if a covered loss, like damage from a fire or storm, temporarily halts your project. 

3. Builders Risk

Also called course of construction insurance or construction all risk insurance, builders risk insurance covers buildings and other structures that are under construction. Depending on the specific policy you choose, it can cover foundations, building materials, scaffolding and other temporary structures, paving, outdoor fixtures, fencing, and lawns, plants, and trees the builder installed. While the majority of builders risk policies cover weather and vandalism damage, you might need an additional policy to cover damage from earthquakes, flooding, and other threats.

4. Workers’ Compensation

Because construction projects present a number of safety risks, it’s important to have workers’ compensation insurance to protect your business if an employee is injured on the job. This type of insurance covers an injured worker’s medical expenses, wages while unable to work, legal costs, and death benefits. Businesses and contractors who don’t have workers’ compensation insurance may face fines and other penalties. 

Simplify your construction project by turning to MP Davis Insurance Agency. Based in Randleman, NC, these trusted insurance agents help property owners, developers, and contractors find the right commercial building insurance to protect their assets. With more than 45 years of experience, they can also help with any bonds needed for your project. Learn more about their reliable services online, and call (336) 498-7606 to request a quote.