Apartment Complex Construction Service Insurance

Apartment Complex Construction Insurance 101

Everything you need to know to protect your business.

Apartment Complex Construction Service Insurance

Apartment complex construction services are part of the larger multi-family housing construction industry. They typically act as general contractors, design and construction services, and work with subcontractors at numerous construction sites.  

Unfortunately, costly problems happen on construction sites every day. The best thing you can do to protect your business and your customers is to have the right apartment complex construction service insurance in place to make sure you can recover after a disaster. A local independent insurance agent can help you find the business insurance you need.

Why Do You Need Apartment Complex Construction Service Insurance?

Apartment complex construction services take on huge risks at job sites. At any time you can be faced with the following types of losses that can threaten your business.

  • Property theft, vandalism, loss, or damage—at your home office or on a job site
  • Lost income due to work stoppages after a fire, storm, or power outage
  • Employee illness, injury, or death
  • Liability claims if you cause bodily injury or property damage to others at your office, showroom, or on a job site
  • Problems that occur after a building is complete (e.g., leaky plumbing, mold problems, structural defects, etc.)

Your business insurance gives you a place to turn when repairs have to be made, and in the worst case, when lawsuits are filed.


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What Does Liability Insurance Cover?

Liability insurance is your first line of defense for lawsuits and claims that you have caused property damage or bodily injury.

  • Contractors general liability insurance: Protects you if your business is responsible for bodily injury or property damage to others. Be mindful that you’ll likely need general liability insurance in order to obtain a contractor’s license.

General liability insurance provides coverage for a variety of liability claims, such as the following.

  • Bodily injury
  • Property damage
  • Completed products
  • Faulty workmanship
  • Personal injury and advertising injury

Commercial auto insurance: If you own trucks or other vehicles, this covers property damage and bodily injury liability claims, vehicle damage, and medical bills, as well as any costs related to lawsuits due to auto accidents involving your vehicles.

Professional liability insurance: Also called contractors errors and omissions insurance, this covers you if a client experiences a loss based upon any professional services you have provided, such as design work or advice.

Commercial umbrella insurance: Provides an extra layer of liability protection to any of several other liability policies you might have. Commercial umbrella insurance kicks in when the limits of your other applicable insurance policies have been exhausted, protecting you in the event that a claim exceeds the amount of coverage available from any other applicable policy.

An independent insurance agent can help you tailor these policies to your unique risks.

What Does Property Insurance Cover?

Property insurance helps you protect losses to your physical assets, such as tools, equipment, construction materials, office space and furnishings, computers, etc., whether they are in an office or a warehouse, a showroom, on a job site, or in transit from one site to another.

With a variety of policies and endorsements, you can cover your “stuff” no matter where it is.

  • Commercial property insurance: Covers your office space, warehouse, or other buildings and their contents for losses due to fire, theft, vandalism, weather events, and more.
  • Business interruption insurance: Property insurance usually includes this policy which reimburses you for lost income and helps pay for certain ongoing expenses if you are temporarily unable to operate due to a covered loss (fire, storm, etc.).
  • Extra expense coverage: Pays for out of the ordinary expenses (e.g., buying or leasing equipment for a temporary site, paying overtime, hiring temp workers) that are above and beyond your normal operating costs if you can’t operate out of your usual location or if your equipment is damaged from a covered event.

Your commercial property policy only covers your tools, equipment, and supplies while they are on your premises (at your office, a warehouse, showroom, or other covered location). You need additional coverage to protect all of your property while it is in transit and while it is at a job site.

Inland marine insurance is another form of property insurance that protects your equipment, tools, portable computer equipment, building supplies, and any other tools or equipment from theft, loss, or damage while they are in transit to and from worksites.


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The Importance of Builders Risk Insurance

Builders risk insurance is a type of property insurance protects buildings that are under construction, as well as materials and equipment at the job site. It usually covers the total completed value of the structure, including materials and labor, but not the value of the land.

Builders risk insurance typically covers damage due to fire, wind, theft, lighting, hail, explosion, vandalism, and certain other perils. It does not cover worker accidents and injuries or liability risks, which are covered by your other policies.

Do You Need Contractors Bonds?

You might need a variety of contractors bonds, or surety bonds, depending on the size and scope of the projects that you work on. Bonds are very important for contractors who work on commercial building sites.

Contractors bonds can be essential for finding, securing, and performing work. They are typically used to guarantee some aspect of the bidding process or building project and ensure the project owner that you are fully licensed, insured, and prepared to complete the project as promised.

Why Do You Need Workers’ Compensation Insurance?

Any kind of construction environment can be dangerous for employees. No matter how many safety protocols you have in place, accidents happen.

Keeping your employees safe from work-related injuries is important. Workers’ compensation insurance provides insurance coverage for employees when accidents happen at the workplace, regardless of who is at fault. The injured worker receives medical care and income protection after a work-related injury.

Each state has different workers’ compensation laws. Your independent insurance agent can help you navigate the rules for your state, and can help you find appropriate workers’ compensation insurance.

How Much Does Apartment Complex Construction Service Insurance Cost?

Insurance costs for apartment complex construction services will vary. Your costs may increase and decrease over time as the number of buildings under construction fluctuates.

Insurance company underwriters will consider things like the location and types of apartments that you are building, the number of apartment buildings under construction, and all of the different optional coverage types and policies that you might need. Your costs are based on these and a variety of other factors unique to your business.


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Benefits of an Independent Agent

An independent insurance agent who has experience working with apartment complex construction services and other similar businesses can help you decide the types and amounts of coverage that you need for your business. The choices you make will determine your cost of coverage.

Independent agents can work with numerous, reputable insurance companies who specialize in your type of business. Together you can review a variety of proposals and choose the best mix of coverage that meets your needs and budget.

What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.

Find and Compare Quotes for Apartment Complex Construction Service Insurance

Instead of getting an online quote, find an independent insurance agent now, and get a one-on-one consultation and affordable options for the best coverage for your unique needs.

Your agent will work with you free of charge to get quotes from multiple insurance companies so you can make the best choice.

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TrustedChoice.com Article | Reviewed by Paul Martin

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