Construction Insurance for Qualified Businesses in Bloomington, IL

 

We’re confident that companies searching for construction insurance in Bloomington IL will benefit from the experience and expertise Clemens Insurance brings. We encourage you to visit our "Contact Us" page so we can get to know you and better answer your questions.

 

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When it comes to addressing key areas of risk in the construction field, Clemens Insurance knows best. We’ll work with you to determine the best plan for your business going forward, as well as sit down to figure out ways to help lower your total cost of risk.

 

Below, we’ve put together a guide to help you better understand the ins and outs of construction insurance, as well as a few things to consider before selecting your construction insurance company in Bloomington, IL.

 

Who Needs Construction Insurance?

 

Realistically, everyone. The reason for this is that liabilities allocated under construction may be substantial, plus it may be the difference between getting and losing a contract. Residential and commercial contractors both should place construction insurance at the top of their priority list. Further, contractor insurance is required when contracting services to the government on the federal, state, or city level. It is also most often required by private entities from contractors.

 

What Does Construction Insurance Cover?

 

You might not know that construction insurance protects all parties involved in a contract. Any damage or injury caused by the contractor’s work will be paid for by insurance. The contractor will not have to pay for such claims out of his pocket, and he is also protected in case he is wrongfully sued.

 

Specifically, public liability covers claims and legal fees for injury or damage caused by the contractor's work to a third party or members of the public.

 

Employer's liability covers claims and legal fees against injuries or illness incurred by the contractor's employees in the course of their work, including accidental death of employees on the construction site.

 

The builder's risk covers claims and legal fees against damage to the building while construction is ongoing. Demolition liability insurance covers claims against damage caused by the demolition.

 

Latent defects insurance (also known as decennial insurance) typically lasts for ten years from the original construction of a building. A building owner must usually arrange the cover in advance and it typically protects the owner against the cost of remedying the structure of a building.

 

Professional indemnity insurance insures against liability arising from professional negligence. This usually includes a contractual liability that is equivalent to professional negligence, such as a breach of a contractual obligation to exercise reasonable skill, care, and diligence when carrying out design.

 

Typically, construction insurance covers the period during which the contracted work is in progress. However, some projects may develop issues many years afterward, and the contractor still runs the risk of being sued. As such, it is his choice - and our recommendation - that he look into additional insurance to cover this possibility, which may be in the form of a run-off policy or an extension of the liability clause.

 

What Does Construction Insurance Cost?

 

The cost of construction insurance in Bloomington IL will vary on a case-by-case basis. To get the most accurate estimate for your company’s needs, visit our “Get A Quote” page.

 

Types of Construction Insurance

 

Commercial General Liability  (CGL) Policy: the CGL policy serves as a base for coverage, allowing companies to add or modify their plans to suit particular jobs or circumstances. Standard CGL policies insure against liability related to “bodily injury” and “property damage.” A CGL policy does not cover the cost to repair defective work, only damage resulting from that defective work.

 

Umbrella Liability Coverage: Larger contractors who operate bigger construction sites may find an umbrella policy most useful. They often serve as a supplement to a CGL policy, as CGL policies have maximum policy limits that may not cover all of a contractor’s liability.

 

Builder’s Risk Policy: These policies protect the named insured from specified dangers during construction. Most construction contracts require the owner or the general contractor to purchase a builder’s risk policy that names the owner, the general contractor, and the subcontractors as insureds. Builder’s risk policies may cover the structure itself and also materials, whether already on site or waiting to be transported. Most policies of this sort are written in terms of duration and provide coverage of events including fire, wind, theft, lightning, hail, explosion, and vandalism.

 

Professional Liability Coverage: This type of policy also acts as a supplement to a CGL, as an increasing number of contractors are working as designer-builders, meaning they assume responsibility for the design and any corresponding liability. Coverage for this type of professional liability is often not provided under a CGL Policy, so many contractors will look at professional liability coverage.

 

Contractor’s Pollution Coverage: Pollution policies provide coverage for third-party claims for bodily injury and/or property damage. This type of policy may be most useful to contractors involved in paving, infrastructure, maintenance, mechanical, demolition, industrial, excavation, grading, HVAC, carpentry, and pipeline and tank installation.

 

What To Know Before Picking A Construction Insurance Company

 

Before picking a construction insurance company in Bloomington IL you should look at the prospective company’s solvency and financial performance. Insurance companies are rated based on their “combined ratio.” The combined ratio is the total of two other ratios – the loss ratio and the expense ratio – and is considered to be an indication of how well the insurance company is performing in its daily operations. These two ratios are added together to obtain the combined ratio. If the combined ratio exceeds 100 percent, the insurance company has lost money that year.

 

You should also look at the insurance company’s class, of which there are two: admitted and non-admitted. Admitted carriers are considered residents within the state and must conform to the regulations of the state’s Department of Insurance. Non-admitted carriers are not residents and therefore are not subject to the same requirements of the state.