5 Tips For Buying Construction Liability Insurance

The impact of the construction industry on Canada is profound. As per the Canadian Construction Association, construction companies significantly contribute to the economy, adding approximately $151 billion annually, which is about 7.4 percent of Canada's GDP.

Construction companies are a critical driver of Canada’s economy, job creation, and supporting growth of related economic sectors. It’s essential that these companies remain in business and do not face financial hardship from risk factors that can be mitigated through construction insurance.

Construction liability insurance is one crucial coverage all construction companies need to avoid financial losses. But what is this coverage, and how do companies acquire it? This article will explore what it is and five tips for buying construction liability insurance in Canada. Let’s jump in.

What is Construction Liability Insurance?

Construction liability insurance, often referred to as commercial general liability insurance or general liability insurance for construction, is a coverage that protects from financial losses due to third-party liability claims of damages from accidents, injuries, or property damage that occur during a construction project or related activity.

5 Tips for Buying Construction Liability Insurance

1. Source multiple quotes
2. Prioritize coverage over cost
3. Understand the coverage limits and exclusions
4. Partner with an expert
5. Review and update your policy regularly
   
   
   

Source Multiple Quotes

When you’re sourcing construction liability insurance, or your broker is on your behalf, you’ll want to get multiple quotes to compare and contrast coverage, limits, and any warranties it may contain. In doing so, you can feel assured you’re getting the best value for your policy.

Working with an Insurance Broker like the ones at Buildsure, they will reach out to their network of insurance companies to get multiple quotes for your construction liability insurance. From there, they will negotiate the rate and terms of the policy on your behalf. A broker can not only save you time but also provide valuable insight into all of your options.

Prioritize Coverage Over Cost

A trap you’ll want to avoid is only looking at the price of your construction liability policy. While cost is an important consideration, the overall value you receive from your policy should be your deciding factor.

Typically, construction liability insurance can vary from one insurer to the next on several factors, such as coverage limits, warranties, deductibles, and exclusions. While cheaper policies may save you money upfront, they may not provide sufficient coverage when you need it, leaving your business vulnerable to significant financial losses.

Understand the Coverage Limits and Exclusions

In order to prioritize coverage over cost, you’ll need to understand the coverage limits and exclusions of each construction liability insurance quote. Here is a brief overview of both.

Every construction liability insurance quote will have its coverage limits set by the insurance company. Coverage limits are the maximum amount of money a policy will pay for a covered loss. Keep in mind, that in the case of construction liability insurance, there may be separate coverage limits for damages, bodily injury, and other package sub-limits, so all will need to be reviewed separately.

Exclusions are specific situations, conditions, or types of damages not covered by a construction liability insurance policy. These exclusions are outlined in the policy documents, which you’ll want to review before buying coverage.

Partner with an Expert  

Working with an experienced insurance broker can make buying construction liability insurance much easier than going it alone. They have deep insurance knowledge, understand different coverage limits and excursions, have a network of insurance companies to source quotes from and provide invaluable advice and guidance as you secure the right policy for your company.

However, not all brokers are the same. You will want to find a broker with experience working with construction companies, as these brokers have experience reviewing construction policies and recommending the best option for their clients.

Review and Update your Policy Regularly

Once you’ve secured your construction liability insurance policy, you’ll want to review it regularly to see if anything has changed since you purchased it. Changes could include a shift in business operations or growth or downsized of your business. If these changes have happened to your company, you will want to connect with your broker to ensure you have the right coverage for your business.

Take The Stress Out of Buying Construction Liability Insurance with Buildsur

Buying commercial insurance on your own can be complicated and time-consuming. You’ve got enough on your plate running your construction business. Luckily, the brokers at Buildsure are experienced in the intricacies of construction insurance. They will partner with you to understand your business and risk profile and source the best policy to protect your business. Contact the team today for a no-obligation consultation.