Contractors are responsible for creating plans and putting them into motion whenever they take on a new project. Depending on the type of work and the subcontractors involved, different types of insurance may be required. By understanding the different types of insurance, construction types of all kinds can be covered against costly claims or disputes.
Types of Bonds
Bonds are very helpful in protecting contractors and their work, and in many cases required by law before even beginning a project. Some of the different types of bonds that might be needed include:
- Site Improvement – for renovations
- Subdivision – for a subdivision’s public structures
- Maintenance – to cover defects, failure and repairs after a project is completed
- Supply – ensures that there are adequate supplies to complete a project
- Performance – helps guarantee quality work is completed in a timely manner as laid out in a contract
- Payment or Bid – protects project owners from having to pay excessive costs to contractors and subcontractors beyond what is outlined in a contract
- Contractor License – ensures that a contractor is licensed and qualified to complete a project
With all the available insurance, construction types ranging from private to public, or small to larger contracts can give contractors the right coverage to get the job done confidently. Before beginning work, speak to an agent to identify your specific needs and to set up a policy that addresses your unique exposures.