When was the last time you looked through your general liability insurance policy? If it’s been more than a year, you need to pull it out and look at it to see what is excluded. It probably doesn’t protect you if there are delays or problems with subcontractors. General liability insurance was never designed to handle all the risks that your business faces. A full portfolio of builders risk insurance including surety bonds that cover contractual obligations can ensure that your business doesn’t lose money when things outside of your control happen.
Most people think of surety bonds for completion of the contract, and although that is true, there are other types of builders risk insurance that that ensure you aren’t on the line if something goes wrong. A maintenance bond guarantees against defects in the building for a specific time frame once the project is complete. Although surety bonds are thought of to protect the client, it also is a form of insurance for you, the builder.
Talk to a specialist who understands the construction industry and can work with you to provide the builders risk insurance that covers the scope of your project. Don’t rely on your general insurance portfolio to handle all of the liability that your company faces when you’re on the job. Protect what you’ve worked so hard to build with the right insurance products.