Civil contracting insurance policies make up a complex beast that can be tough to navigate if you do not know where to start. Whether you are the property owner looking to provide insurance for your contractors or if you are the construction company owner seeking insurance for your business, you will find there is a wide assortment of policies that you could choose from. Before you settle on what form of civil contractor insurance would suit your needs, it would be advisable first to pinpoint the immediate risks that your project is faced with. From there, you can discern which policies would be ideal for your needs based on the terms provided and the stipulated limits. Moreover, you would also have to determine whether you need a one-off policy or if you are better off with an annual plan. So what are some of the types of insurance to consider when starting a construction project?

CGL insurance

CGL stands for Commercial General Liability, and it is the most basic type of insurance over that you can take out for a building project. Typically, project managers or property owners will opt for this policy as their base coverage, and then consider additional policies to complement the cover. Commercial General Liability insurance will insure you from liabilities stemming from either property damage or bodily harm that occurs on the construction site.

Bodily injury encompasses any physical harm or disease that someone sustains from the building site, even it if causes death. Property damage, on the other hand, insures you from all resultant losses that occur on the property due to the construction process. However, it is important to note that this form of insurance will not protect you from liability if the construction work was defective.

Umbrella liability insurance

This form of insurance coverage is better suited to large construction business that tends to work on expansive commercial projects rather than small-scale residential projects. People will typically consider an umbrella liability policy with the sole purpose of supplementing their commercial general liability policy.

The reason for this is CGL insurance tends to have maximum policy limits in place, depending on who the provider is. Therefore, if you are embarking on a large-scale project, the policy limits in CGL coverage may not be sufficient, and you would need an umbrella liability to ensure you have extra money in the event the initial coverage amount is insufficient.