Definition - What does Construction Insurance mean?
Construction insurance is insurance protection that provides financial compensation for covered losses to a building or structure, as many mistakes, errors, and unforeseen events can lead to damages and losses during the construction of a building. Construction companies or other parties who have an interest in the property being built commonly purchase it.
Insuranceopedia explains Construction Insurance
Construction projects are often extremely expensive endeavors with various risk exposures, considering the amount of materials, equipment, and contractors needed to finish the project. Without construction insurance, this undertaking would be incredibly risky for businesses to participate in. It provides the invested parties the peace of mind to go forward with the project. With a proper policy, the construction company, or the other insured parties enjoy coverage for a number of perils and will be significantly less at risk to lose large sums of money.