Commercial General Liability Coverage for Contractors 

Commercial general liability coverage (CGL) is insurance for third-party claims such as bodily injury and property damage for contractors and project owners.

When you and your employees are working at jobsites, using heavy machinery and equipment, there’s always the risk that you could unintentionally cause property damage or injuries to a third-party. If you should be held liable, this insurance covers the cost of any legal expenses, medical bills and repair costs, up to your policy’s limit.

Course of Construction Insurance

Course of construction insurance, also called builder’s risk insurance, is insurance for damage or loss to residential or home construction projects. In most cases with this policy type, several parties may be included in the policy, including the property owner or developer, general contractor, subcontractors, lenders and construction managers.

Typically, the responsibility of obtaining builder’s risk insurance falls to either the building owner (especially in residential cases) or the general contractor. This is because these two parties are the ones who are most financially invested in the project and would end up facing a larger financial loss if something unexpected were to happen.

Wrap-up Liability Insurance 

Wrap-up liability insurance is insurance for a specified project from start to finish. This type of insurance policy is designed to cover team members involved in a construction project, including the project’s owners, engineers, project managers, developers and contractors. Wrap-up liability insurance insures these parties against general and third-party liability exposures related to the project.

Wrap-up liability insurance is for projects worth $10 million or more and may be purchased in two forms: contractor-controlled and owner-controlled. Contractor-controlled wrap-up insurance may be used by a general contractor to extend protection to all subcontractors and contractors that are signed on to a project.

Owner-controlled wrap-up insurance is designated by the owner of a project for the benefit of a contractor or builder to cover all contractors listed on the project.

Some construction insurance policies include coverage for a business’ physical assets, including equipment, automobiles, etc.

The following may also be covered:

• Commercial automobiles, including sedans, vans, trucks, etc.
• Power tools and hand tools
• Heavy machinery
• Work gear, safety equipment, etc.
• Warehouses
• Office supplies
• Furniture, electronics
• Building materials
• During a construction project, buildings and structures are especially vulnerable to potential exposures. A construction insurance package might include the following during construction:
• Materials
• Structure foundations
• Temporary structures
• Paving, outdoor fixtures
• Signage and landscaping

Most construction insurance policies will have a standard array of physical perils that they will provide coverage for, such as:

• Fire damage
• Smoke damage
• Falling objects
• High winds
• Hailstorms
• Lightning
• Theft and vandalism

Construction insurance may exclude coverage for intentional damages, criminal activities, fraud and breach of contract. Each policy has its own specific exclusions, so it’s recommended that you familiarize yourself with the contents of yours. If you need help working through the details of your policy, our brokers are more than happy to walk you through your policy.