Construction Insurance in Vermont

What is Construction Insurance?

Working in the construction industry comes with an array of possible risks, which include both property- and liability-related perils. Construction insurance helps protect businesses in Vermont from many of the risks they’re exposed to.

Construction insurance is a specialized form of commercial insurance that’s designed to meet the unique insurance needs of businesses and professionals in the construction industry. Most policies are written as package policies so that they can offer protection from multiple risks.

What Businesses in Vermont Need Construction Policies?

The majority of Vermont businesses that are involved in construction ought to consider purchasing a construction policy. Few businesses could financially recover from a major disaster or lawsuit without a policy in place, and some businesses may have a hard time securing contracts without adequate construction liability insurance coverages. Certain clients require this coverage as a prerequisite to being hired by them.

Businesses that aren’t sure whether construction or some other form of insurance is more appropriate for their situation should speak with an insurance agent who specializes in this form of coverage. Insurers generally defer to the National American Industry Classification System, which classifies over 1.5 million different types of businesses according to industry, and an insurance agent can check to see how a particular business would be classified under this system.

According to the NAICS, the following are some of the businesses that may need construction liability insurance coverages and the other coverages that are available through a construction policy:

General contracting companies
Residential remodeling companies
New building construction companies
Structural construction companies
Street, bridge and highway construction companies
Companies involved in land subdividing

What Coverages Do Construction Policies Make Available?

As mentioned, construction policies tend to be package policies that come with multiple protections. Some coverages that a policy might make available as a standard or optional protection are:

General Liability Coverage, which often covers a variety of common accidents

Owners and Contractors Protective Liability Coverage, which often covers damage to others’ property

Professional Liability Coverage, which often covers errors when giving clients advice

Commercial Umbrella Liability Coverage, which often covers additional liability protection

Commercial Property Coverage, which often covers owned equipment and facilities

Inland Marine Coverage, which often covers equipment and supplies while they’re transported between work sites

Equipment Breakdown Coverage, which often covers essential equipment in the event of a malfunction

Commercial Auto Coverage, which often covers owned vehicles

How Are Premiums for Construction Policies Set?

Insurance companies take into account a variety of factors when setting premiums for construction policies. Some of the items that may influence how much a policy costs include:

Where a business’ headquarters are located

Where a business’ service area is

What sort of construction a business does

Whether a business has filed insurance claims recently

What coverages and limits a business has selected

An independent insurance agent can help construction businesses compare quotes to find out how much insurance would cost in their particular situation. Whereas captive agents can normally only show quotes from the company they represent, independent agents are free to share quotes from multiple insurance companies for a more complete view of what policies cost.

How Can Businesses in Vermont Get Construction Insurance?

For help finding construction insurance, contact the independent Vermont insurance agents of Paige & Campbell Insurance. Our agents have assisted many construction companies in with finding a policy, and they have the expertise necessary to get you a policy that has the right construction liability insurance and other coverages at an affordable price.