The construction industry has unique needs, and our agency partners look to RPS to provide coverage solutions of all types for their construction industry clients. Kevin Wartick, RPS senior producer Commercial Lines, provides an overview of the seven must-have insurance products for your construction clients.

1. Excess Liability

Contractors working on large projects or with high liability exposure, such as those in urban areas or high-risk industries, should have Excess Liability insurance.

"The policy provides additional coverage beyond the limits of a primary General Liability (GL) policy. High-value projects or large-scale operations often require higher liability limits to meet contractual obligations or protect against catastrophic claims. Excess Liability ensures these needs are met," Wartick says.

2. Pollution Liability

Many contractors need to pay more attention to their pollution exposure. A small spill or improper disposal of materials can lead to significant cleanup costs and legal liabilities. Additionally, standard GL policies typically exclude pollution-related claims, making this coverage critical.

"Contractors involved in activities like demolition, painting, waste removal or any operations that could result in environmental contamination will need Pollution Liability," says Wartick.

Pollution Liability insurance addresses claims arising from pollution incidents, such as spills or hazardous material exposure. Coverage can include contractor, site and transportation pollution, combined in one policy or as separate lines.

3. Professional Liability

General contractors involved in design-build projects or artisan contractors providing professional consulting services should carry Professional Liability insurance. This coverage protects against financial loss related to errors, omissions or negligence in the design or advisory process.

"For example, a contracting firm designs and builds a skylight for a commercial building. The finished skylight doesn't allow an adequate amount of light in due to a design flaw, so the opening of the building is delayed while the skylight is redesigned," explains Wartick. "The extra expenses incurred would be covered under a Professional Liability policy."

4. Contractors Tools and Equipment

Contractors who rely on expensive tools and machinery — from artisan contractors to large general contractors with extensive equipment fleets — require a Contractors Tools and Equipment policy.

"The cost to replace or repair essential tools can be financially devastating without proper coverage," says Wartick.

Coverage applies to owned, rented or borrowed tools and equipment. Whether it's a $500 hammer drill or a $1 million excavator, the policy can be designed to protect against theft, damage or loss.

5. Builder's Risk

Builder's Risk insurance protects against physical loss or damage to a project under construction or renovation, including risks like fire, vandalism or severe weather, and "the policy can cover single or multiple projects under a reporting form," according to Wartick.

6. Commercial Auto

"Vehicle-related incidents are common in construction operations. A robust Commercial Auto policy protects against potentially significant liabilities and property damage," says Wartick.

Commercial Auto insurance covers damages and liability arising from accidents involving company-owned or rented vehicles used for business purposes — from small vans to large fleets of trucks.

7. Workers' Compensation

Construction is one of the most hazardous industries out there. A Workers' Compensation policy ensures injured employees receive the care they need while protecting employers from crippling financial and legal consequences. It covers medical expenses, lost wages and rehabilitation costs for employees injured on the job. It also protects employers from lawsuits related to workplace injuries.

Contractors face many risks that extend far beyond what GL insurance covers. Excess Liability, Pollution Liability, Professional Liability, Contractors Tools and Equipment, Builder's Risk, Commercial Auto, and Workers' Compensation are critical policies to ensure comprehensive protection in the construction world.

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