Whether small or large, Florida contractors must carry appropriate insurance coverage to protect them from serious consequences and unmanageable claims. There is no one type of insurance policy that can protect a contractor in all cases. Therefore, multiple policies must be held in order to maintain maximum coverage and protection.
For large-scale and complex construction projects that feature multiple subcontractors, what is called subguard insurance is a must. The International Risk Management Institute indicates this type of policy is also sometimes called default insurance. It can be used for claims when a subcontractor fails to completely fulfill the activities and obligations set forth in a contract with the primary contracting business.
The IRMI indicates the importance of builder’s risk insurance as a means of protecting actual property during a construction project. This can be property at an actual construction site, at an offsite storage facility or while in transit to a construction site.
Certainly liability is always a concern in the construction industry. For this reason, comprehensive general liability insurance, commonly referred to as CGL insurance, is at the top of the list of must-have coverages for any construction company. According to the American Bar Association, this form of policy will cover both property damage and bodily injury claims that companies within the construction industry face.
Making sure that the right types of insurance policies are in place and with high enough coverage limits is essential for individual contractors or large construction companies alike. While problems during construction projects are never planned, they must be prepared for.
This information is general in nature and not intended to provide actual legal advice.