3 Must-Have Endorsements for Construction Professionals

Strong construction insurance coverage can be the difference between a business growing, remaining stagnant, or decreasing in value. When purchasing insurance, you may find you need coverage outside of what the standard policy provides.

An endorsement is added onto existing coverage to provide protection for acts and circumstances not covered under the standard policy. They’re three must-have endorsements that most construction professionals will need at some point in their career.

Today, we take a look at the protection each of them provides:

Standard Policy: Property Insurance / Endorsement: Inland Marine Insurance

While property insurance protects your equipment at the primary business location, the inland marine endorsement provides increased mobility for protection wherever you go. Damage often occurs while in transit or at the job site. For example, leased equipment could fall out of your truck while driving. In this situation, the property-in-transit coverage under your inland marine policy can pay the cost to replace that leased item. Beyond physical exposures, inland marine insurance can cover digital losses. If you are unable to collect payment because of damaged or lost records, your policy can pay out for the lost wages you didn’t receive. Inland marine coverage can be purchased as an endorsement or standalone policy. To find out which is best for you, call H&K Insurance at 617-612-6533 to discuss your options today!

Standalone Policy: Property Insurance / Endorsement: Builder’s Risk Insurance

Builder’s Risk insurance can either be purchased as a standalone policy or via an endorsement. This type of insurance covers your construction project while it is currently being built. Typically, it will cover damage or losses due to fire, windstorm, theft or vandalism. For example, if a fire destroys a section of a building, your builder’s risk policy would compensate you for the cost to rebuild. Builder’s risk policies can be written on a “named perils” or “open perils” basis. The named perils option is less expensive but only covers the perils listed on the policy. The open perils option is more expensive but covers all risks not specifically excluded on the policy. We at H&K recommend the open perils builder’s risk policy because it provides more comprehensive coverage for your construction project.

Standalone Policy: Inland Marine Insurance / Endorsement: Installation Floaters

Installation Floaters provide coverage for equipment and machinery that will be installed in a building, such as an air conditioner or heater. The coverage “floats” with the items during transit, installation, and testing at the job site. When the client accepts the installation work, this coverage typically ends. For example, a contractor is lugging a $5,000 air conditioner to the job site when he gets hit in the rear by the car behind him. This collision causes the unit to get damaged beyond repair. Installation Floaters will pay the cost to replace the unit minus the required deductible.

Do you need to insure an upcoming project? Give John Quinn a call at 617-612-6533 or email him at jquinn@hkinsurance.com to discuss your options today!