Construction Services
A building project carries physical, financial and contractual risk from start to completion.
Coverage to consider
Contractors weigh coverage for work under construction, their own equipment, installed equipment, delay, bonds, professional error and claims after completion.
- Professional liability (E&O)
- Can pay defense costs and settlements when a claim alleges professional error in the advice or work a contractor delivers.
- Can include professional error, cost of defense and settlements and court awards
- Performance bond
- Typically compensates the project owner if the contractor defaults on completing the contract as agreed.
- Can include contractor failure, work below standard and late completion
- Payment bond
- Can pay the firms that supply labor and materials to a project if the main contractor fails to pay.
- Can include failure to pay, contractor failure and contested sums
- Completed operations
- Generally responds to claims for damage or injury traced to finished work, even after the job is handed over.
- Can include liability for property damage, liability for injury and defense of claims
- Contractor’s plant and equipment (CPE)
- Typically insures excavators, cranes and power tools against damage, theft and sudden breakdown, including while moving between sites.
- Can include direct damage, sudden breakdown, transit and external perils
- Installation floater
- May protect equipment and materials in shipment to a job, during installation and while stored on site.
- Can include delivery to site, installation work and on-site materials
- Delay in start-up (DSU)
- Often pays the added costs when a storm, labor dispute or material shortage delays a project’s completion.
- Can include anticipated profit loss, late project start-up and extra project costs
- Builder’s risk
- Usually covers a project’s building, materials, tools and temporary structures against fire, theft, vandalism and weather.
- Can include damage to property, theft or malicious damage, fire and natural catastrophe and indirect project costs
These guides describe types of insurance in general. The right coverage depends on your operations and the terms of the policy issued. Pasaca’s featured lines are cyber insurance, directors and officers (D&O) liability insurance, product liability insurance and aviation insurance.
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Property & Construction
Building and owning property brings physical damage, project delay, contractor default and professional liability. Each stage of a project can call for different coverage.
Speak with our team about coverage for your business.