Individuals who are in the construction business or who are thinking about going into the construction business should familiarize themselves with the most common types of construction insurance in New York. It’s not enough to simply have insurance, you also need to understand what type of insurance you have and what it’s used for.
Liability is one of the most essential types of insurance to have in the construction industry. With it home builders, remodelers and contractors are protected against accidents, injuries and any property damage that the job site might suffer.
Hold Harmless Agreement
In most cases, the Hold Harmless Agreement is provided by the builder, contractor and other related professionals as a way to insure them against any work that is being done by a subcontractor.
Builder’s Risk Insurance
This type of policy will take care of damages up to a certain financial limit. That limit has to accurately reflect the full value of the completed construction, which doesn’t include the land value.
Insurance companies and banks are usually the ones to issue performance bonds. Not only that, but the two entities also act as a “surety,” which means that they will take full responsibility for the contractor’s or builder’s performance.
With so many different types of construction insurance in New York, contractors and builders should decide which policies will work best with their upcoming projects and adjust their coverage accordingly.