How to Select and Purchase Construction Insurance in Delaware
What are the different types of Delaware construction insurance? General liability, Builder’s risk, Professional or design errors and omissions, and Bond requirements. In addition to these types of coverage, there are other important considerations. Here are some tips on selecting and purchasing construction insurance for your company. Listed below are some of the most important considerations:
General liability coverage
The cost of general liability coverage for Delaware construction insurance can vary significantly depending on the type of business and the type of risk that you’re exposed to. For example, a Georgetown window washer will have a higher cost per policy than a house cleaning company with a few employees. While some companies have higher liability limits, others have much lower costs. The amount of money you pay per month depends on several factors, including your type of business and how much exposure you have.
Builder’s risk coverage
While construction is in progress, a partially-completed building is vulnerable to a range of risks. Among these risks are theft, fire, and other natural disasters. Therefore, a builder’s risk policy is essential for any under-construction project. In addition, homeowners should also have their homes insured as soon as possible. But what happens if the building or its contents are damaged? In such a scenario, the property owner should have insurance to replace the damaged items.
Professional or design errors and omissions coverage
If you’re involved in the design, planning, and construction of a building or structure, you should purchase professional or design errors and omissions coverage to protect yourself. This type of coverage typically covers costs incurred by clients due to mistakes made by the contractor. This type of insurance is essential for any contractor who offers in-house design services. It’s also an excellent idea to consider purchasing subcontractor default insurance, otherwise known as “SubGuard” insurance, which is an additional form of protection.
When deciding whether to hire a construction contractor in Delaware, it’s important to understand what the state requires for surety bonds. In Delaware, contractors must post a bond of up to six percent of the total contract value as a guarantee to the state of Delaware that the company will meet its contractual obligations and abide by applicable laws. Additionally, surety bonds protect consumers by placing liability on the principal if something goes wrong. If a contractor fails to meet its obligations, the surety bond company pays the resulting amount as compensation for the loss incurred. In most cases, the principal must pay back the surety bond company within six months of the incident.
Cost of coverage
What determines the cost of your construction insurance coverage? Your business’s specific insurance needs and location will affect the cost. A Georgetown business with two employees will have a different insurance rate than one in Wilmington with fifteen. Most importantly, the type of work you do will determine the cost of your policy. For example, window washers who work from a suspended position on tall buildings will be at higher risk than housecleaners who only clean from ground level.