Construction Insurance
Albertville

Harris-Fowler Insurance has been notably focused on serving the construction industry. Our broad construction insurance experience includes risk management for general and subcontractors who focus on commercial, municipal, government, and public works projects.

We have a deep understanding of the unique exposures faced and the coverages that various construction projects require.

We have a current understanding of the industry and the associated markets and trends - including a strong relationship with the key construction insurance companies who provide coverage to the construction industry.  

Who needs construction insurance? 

If you’re in a construction business you should always have commercial insurance. Many businesses are required by their clients to carry specific coverages before they can work for them. Businesses involved in construction work often specialize in trades like: 

• Excavation 
• Home Improvement 
• Land Clearing 
• Remodeling 
• Home Building 
• Asphalt Laying 
• Welding 
• Fence & Deck Building 
• Concrete Laying 
• Stone & Granite Work 
• Roofing 

 

How much does construction insurance cost? 

Different trades are exposed to different types and degrees of risk. This variety of exposure is one of the many factors used to calculate a business’s construction insurance cost. 

Other influences on your rate include your coverage needs, employees, work vehicles and claims history. The only way to know your exact rate is to get a customized construction insurance quote. Just call us or receive a quote online. 

Basic Construction Insurance Coverage 

• General Liability: This construction liability is pretty common and the coverage protects your business if it’s responsible for anything like property damage, bodily injury or incorrect work. 
• Commercial Auto: Protects vehicles used in your business that transport tools and equipment. You can also add coverage to your policy that allows you to cover permanently attached equipment such as bolted tool boxes or racks. 

• Workers’ Compensation: Covers employee medical costs and a percentage of lost wages if they become ill or injured at work. 
• Professional Liability: helps to pay for alleged work oversights that cause a client a financial loss. If someone says you didn’t deliver the services you said you’d provide, they can ask you to pay for any losses. Professional liability can help cover the costs to defend your business and/or fix the problem. 

Contract and Lease Review 

We review the indemnification and construction insurance language in existing leases and contracts, including the scope of indemnification and hold-harmless language, requirements for waivers of subrogation on property, liability, and workers compensation, and appropriateness of construction insurance requirements. 

Surety / Bond Services 

Our surety department works with clients to develop customized bond programs that fit each client's unique needs. Surety companies are reviewed and evaluated for consistency in underwriting, capacity, ratings, stability, and rate economy. Clients are effectively represented to surety markets with assistance in bond request presentation, review of bond requests for appropriateness, and prompt, correct bond issuance.  

General Safety Procedures  

◦ Protect your employees by minimizing any job hazards. 

◦ Prepare emergency announcements and do test runs of emergency response systems to familiarize employees.  

◦ Choose a practical flooring surface, not just one that looks nice. Often, the best looking floors can be the most dangerous and will be slippery when wet.  

◦ Customize workspaces to fit each employee’s needs through ergonomic adjustments. By ensuring that an employee’s work space is tailored, you create a safer environment less prone to bodily stress or injury, and thus, less prone to workers compensation claims.  

◦ Educate your employees on the safest way to lift objects. Squatting with bent knees minimizes the stress to the back, regardless of what is being lifted.  

◦ Create a policy on distracted driving. Motor vehicle accidents account for a large percentage of work-related fatalities. Eating and drinking, cell phone use, and music devices are all possible sources of distraction behind the wheel. A good policy can help prevent fatalities and limit liability for your company.  

◦ Establish and enforce disciplinary measures for safety violations. There should be some type of corrective action for any employee who doesn’t abide by safety requirements.  

◦ Train your supervisors in-house. They may have previously been trained as supervisors in general, but they need to also be trained in your particular work environment. 

 

Frequently Asked Questions

• How do you calculate builders risk?

  Calculating builder's risk insurance involves assessing the total completed value of the project, including materials, labor, and overhead costs. This insurance typically covers property under construction against damage or loss. To determine the appropriate coverage amount, you need to estimate the project's total value at completion, considering factors such as construction materials, labor costs, and any additional expenses like architectural plans and permits. It's also crucial to account for the duration of the construction project and any potential risks specific to the project or location. Consulting with an insurance professional can help ensure that all aspects of the project are adequately covered and that the policy limits are appropriately set.

• Who pays for builders risk insurance?
  It can be a challenge figuring out whose responsibility it is to pay for a builder risk policy because the paying party does vary from policy to policy. It would be nice if it were like a date where the initiator takes on fiscal responsibility, but that's not the case. Most often, the property owner or the general contractor overseeing the project pays for the builders risk policy, and it's standard practice to negotiate this before any contracts are signed. If you're concerned about whether you're covered on the policy, worry not. Coverage is not limited to the paying party. You can have multiple covered parties (insureds) on a policy. Some examples include: General contractor Developer or property owner Subcontractors The build's money lender can be listed as a mortgagee, which offers them financial protection.
• What's the difference between builders risk insurance and property insurance?
  As mentioned before, builders risk insurance is a type of property insurance. Still, there is a notable difference: builders risk insurance is designed to be temporary and only lasts as long as construction does.
• How much does builders risk insurance cost?
  Unfortunately, there's no single estimate for how much builders risk coverage costs. Your premium will vary based on many different factors, such as: Your selected coverage amounts Policy limits How much the project costs Where the project is located The type of project Experience level of all contractors involved How long the project will take Quality of your building materials Size of the project and construction site
• How do I calculate builders insurance risk cost?
  You won't be able to perfectly calculate the cost of your builders risk insurance on your own. Insurance carriers use an extensive process when creating a quote or final policy. However, a reasonable cost estimate would be about 1 to 5 percent of your project's total budget. As experienced agents in builders risk insurance, we strive to know you and your worries. We spend time listening and learning to better serve you and help you find solutions. You've worked hard to build your business. The next step is to protect it. We'll assess your risks and help you tailor an insurance policy. We'd love to chat with you. Contact us today!
• What does builders risk not cover?
  Builders risk insurance can cover quite a bit. However, as with any insurance policy, specific exclusions are not covered. Acts of terrorism and war Damage from a faulty design Employee theft Mechanical breakdowns Rust and corrosion Wear and tear Natural disasters like flooding or earthquakes
• What does builders risk insurance cover?
  Builders risk insurance covers a variety of risks. It can protect construction projects that have been damaged by: Fire Lightning Hail Explosions Theft Vandalism Extreme weather
• How much builders risk insurance do I need?
  In all honesty, necessary coverage amounts vary greatly from business to business or project to project. However, there is a good rule of thumb! When deciding on your insurance limits, set them equal to your final anticipated construction cost. This way, you have minimal gaps in your coverage.
• What is builders risk insurance?
  Builders risk insurance, also known as course of construction insurance, is a specific type of property insurance meant to protect buildings and structures under construction. In this case, construction includes completely new buildings as well as remodels and installation work.
• Who needs construction insurance?

  If you're in a construction business you should always have commercial insurance. Many businesses are required by their clients to carry specific coverages before they can work for them. Businesses involved in construction work often specialize in trades like:

  • Excavation
  • Home Improvement
  • Land Clearing
  • Remodeling
  • Home Building
  • Asphalt Laying
  • Welding
  • Fence & Deck Building
  • Concrete Laying
  • Stone & Granite Work
  • Roofing 
• Not sure which of these coverages is right for your construction firm?

  Our staff provides accurate and timely delivery of certificates of insurance. We also provide assistance and reviews of certificates and risk transfers. With our understanding of the design and administration of wrap-ups, we can help contractors navigate the construction defect litigation landscape. Our tailored risk management solutions enable contractors to respond to market fluctuations and better predict future costs.