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Construction Insurance 101

What is construction insurance?

There are many types of construction insurances (also known as contractors insurance) intended to protect a property developer and other stakeholders throughout the stages of a construction project.

Contractors insurance, which is basically insurance for a construction project, is a wide classification of coverage that relates to the erection of buildings, roads, bridges or any other types of structures.

The following is a list of the most common types of contractors insurance and how they protect those involved in the stages of construction.

Builder’s Risk Insurance

Builder’s risk insurance (all risk insurance) is coverage for buildings and other structures during construction.

This policy should be prioritized even where policies such as commercial property insurance and homeowner’s insurance have been purchased, since the policies do not cover structures under construction.

Builder’s risk insurance covers residential new construction and remodeling projects, commercial property construction, building materials, foundations, scaffolding, fencing, paving, outdoor fixtures, and lawns fitted by the contractor.

In most cases, all risk insurance covers damages caused by fire, vandalism, and weather, although some construction insurance companies can offer special coverage for unique projects.

Construction bonds

Construction (contract) bonds are intended to guarantee that a project will be completed if accepted, and if failed an entity will be made to pay for the damage.

There are several types of construction bonds, including:

Bid bonds – which guarantee that bid proposals are serious and that the bidder is capable of undertaking the project.
Payment bonds – which assure that the builder can provide payments to suppliers, subcontractors, and site workers.
Supply bonds – which guarantee that suppliers will deliver building materials and other supplies as per the contract.
Performance bonds – which compel the contractor to follow the quality guidelines set out in the project’s contract.
Maintenance (warranty) bonds – which protect the project owner from poor workmanship for a period of time after the work is done.

Contractor license bonds

This is an agreement – similar to construction insurance policies – which assures that a contractor will obey the rules that pertain to their contractor license.

It is designed to protect members of the public and the people who will work or do business with the contractor.

Contractor license bonds are offered by insurance companies and the cost usually varies depending on the contractor’s historical track-record of income and credit score. The better the track-record the cheaper the bond.

Workman’s Compensation

This type of construction insurance is designed to protect businesses and contractors from any liability in the event their worker is injured while on duty.

It covers medical expenses as a result of a covered incident, ongoing recovery expenses related to an injury, missed wages, legal fees if the policy holder is taken to court, as well as funeral costs and death benefits.

General liability insurance

Also known as commercial general liability insurance, this type of insurance for construction offers a liability protection to businesses in the event of property damage or bodily harm in the course of business.

General liability insurance policies for construction companies usually cover damages relating to defective workmanship, work-related injuries, and defamation.

Like in other types of construction insurances, general liability insurance outlines certain exclusions to protect insurers from having to cover certain risks.

Construction equipment insurance

Also known as tool and equipment insurance, this type of insurance is designed to cover the tools and equipment used by construction professionals, including:

Computers and data – desktops, laptops, tablets, and project data.
Owner’s equipment – forklifts, cranes, loaders, excavators, etc.
Contractor’s tools and equipment – generators, drills, hammers, saws, etc.
Leased equipment – leased equipment and tools.

This policy typically covers items at either replacement cost or at the fair market value of the stolen or damaged items.

Coverage of this nature includes equipment stolen from a construction site as well as those damaged in a fire or natural disaster at a jobsite.

Professional liability insurance

Also known as errors and omissions (E&O) insurance, this type of coverage offers protection for a business against claims resulting from errors and mistakes that occur during normal business operations.

A good example of E&O coverage is the case of an engineer who miscalculates the structural requirements of a house – causing the owner to make expensive repairs.

The homeowner may sue the engineer for damages caused by his mistakes. In this case, the E&O policy in the engineer’s insurance policy might cover the claim.

However, unlike other policies that cover property damage or bodily injuries suffered in the line of duty, E&O policies only cover financial losses.

Source: https://www.constructionkenya.com/10113/construction-insurance/

SAFE DRIVING MEANS SAVING MONEY

Do you want to save money on your auto insurance by driving safely? Most companies are using car telematic programs to do so.

Car telematic programs are wireless devices that communicate with each other. In the world of auto insurance, this means that insurers collect data by using a cell phone app or a small in-car tracking device. Yes, that might sound intimidating but there are many reasons these devices could be useful to you.

Lower Rates. Do you want to pay less for car insurance? Your car insurance should be based on how you drive, not the age of the driver. Careful drivers can be rewarded for their good driving habits. Whether it is a lower deductible or premium, you will see exactly how your driving affects you.

Misuse. Trying to save your family vehicle for as long as possible? Telemetric information can help discourage the misuse of your vehicle so it will have a longer life in the family. Some devices will let you know when you are braking or accelerating too hard, which could decrease the life of your vehicle.

Teen Drivers. Having a teen driver out on the roads for the first time can be scary. Telemetric tracking devices allow you to see if your teen is driving safely. Are you scared of them being reckless with the family vehicle? You are able to gather information such as braking or accelerating too quickly, for a teaching moment that could one day save their life.

There are many carriers that use this technology today. Each carrier has their own unique device or app that allows you to personalize your rates based on how you drive. You can start saving by calling our agency.

Sources:

https://www.brickhousesecurity.com/gps-trackers/apps-vs-devices/

https://twocents.lifehacker.com/should-you-let-your-insurance-company-track-your-drivin-1845201248

https://www.compare.com/auto-insurance/resources/how-insurance-telematics-work

How to Choose the Right Renters Insurance Policy for Your Needs

How to Choose the Right Renters Insurance Policy for Your Needs

If you’re a renter, you know renters insurance is important to protect your personal belongings and provide liability coverage. However, with so many insurance policies, choosing the right one for your needs can take time and effort. Here are some tips on how to choose the right renters insurance policy:

1. Assess your needs: Inventory your belongings and estimate their value before shopping for renters insurance. This will help you determine the coverage limits you need for your policy.

2. Compare policies: Look at different insurance companies and compare their policies, coverage limits, deductibles, and premiums. Read the fine print to understand what is covered and what is not.

3. Consider additional coverage: Depending on your situation, you may need additional coverage for items such as expensive jewelry or electronics. Check if the policy offers add-ons for extra protection.

4. Check the liability coverage: Liability coverage is crucial in case someone is injured on your property or if you damage someone else’s property. Make sure the policy you choose has adequate liability coverage.

5. Look for discounts: Some insurance companies offer discounts for things such as having a security system in your rental, being a non-smoker, or having good credit. Ask about any potential discounts before finalizing your policy.

6. Read reviews: Look at online reviews of the insurance company and policy before making a decision. This will give you an idea of their customer service, claims process, and overall satisfaction of their customers.

By following these steps, you can choose the right renters insurance policy that fits your needs and provides you with the peace of mind you deserve.

College Bound: Why Renters Insurance is a Smart Move for Dorm Life

Heading off to college is a thrilling milestone, filled with new experiences, knowledge, and friendships. As you prepare for the exciting journey of dorm life, there’s one essential aspect that often goes overlooked – renters insurance. While you may be wondering why such coverage is necessary for a cramped dorm room, we’ve got the facts to show you why renters insurance is a smart move and how it can protect your belongings and peace of mind during this chapter of your life.

Believe it or not, dorm room thefts happen more frequently than most college students realize. According to campus safety statistics, property crimes, including theft, are among the most reported incidents on college campuses. The compact living spaces in dorms make it easier for thieves to target and access belongings, such as laptops, smartphones, and other valuable items. With renters insurance, you can have financial protection if your belongings are stolen, ensuring you can replace essential items and stay focused on your studies.

Accidents can happen, even in a controlled environment like a dorm room. Whether it’s spilled coffee on your laptop or accidentally knocking over a roommate’s expensive equipment, renters insurance can provide coverage for accidental damage to your belongings. Without this coverage, you might find yourself facing costly repair or replacement expenses, impacting your budget and causing unnecessary stress.

In a densely populated environment like a college dormitory, the risk of fire and water damage increases. From overloaded electrical outlets to sprinkler system mishaps, these incidents can lead to severe losses. Renters insurance typically covers damages caused by fire, water leaks, and other covered perils, helping you recover financially in case of an unforeseen disaster.

Renters insurance doesn’t just protect your belongings; it also offers liability coverage, which is a must-have for college students. Accidents happen, and if someone gets injured in your dorm room or you accidentally damage school property, you could be held responsible. Liability coverage can help cover legal fees, medical expenses, and damages, giving you the protection you need in case of an unfortunate event.

One often overlooked benefit of renters insurance is its off-premises coverage. This means that your belongings are protected not only in your dorm room but also outside of it. Whether you’re visiting home during a break or traveling for a weekend getaway, your renters insurance can extend coverage to your belongings, providing peace of mind wherever you go.

Contrary to popular belief, renters insurance is affordable, especially for college students. Many insurance companies offer tailored policies designed specifically for students living in dormitories. These policies often provide the essential coverage needed without breaking the bank. Plus, with various deductible options, you can customize the policy to suit your budget and coverage needs.

Going back to college is an exciting adventure, but it’s crucial to take measures to protect yourself and your belongings during this transformative time. Renters insurance may not be the first thing that comes to mind when preparing for dorm life, but the facts speak for themselves. With coverage for theft, accidental damage, fire, water damage, liability, and even off-premises incidents, renters insurance provides comprehensive protection that every college student should consider. By investing in renters insurance, you can focus on making memories, expanding your horizons, and embracing the journey of higher education with one less worry!

Navigating the Seas of Protection: A Comprehensive Guide to Boat Insurance

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Ah, the open waters! There’s something truly liberating about setting sail and exploring the vast expanse of the ocean. But with the freedom of owning a boat comes a responsibility to protect your vessel and those aboard. That’s where boat insurance comes into play. In this blog post, we’ll dive deep into the world of boat insurance, exploring different types of coverage, including marine insurance, personal leisure, commercial use, and charter lines.

Understanding Marine Insurance

Marine insurance serves as a broad term encompassing insurance coverage for various types of vessels, including boats, yachts, sailboats, and more. It typically provides protection against risks such as theft, damage, accidents, and liability. Marine insurance can be further categorized into personal leisure and commercial use insurance, depending on the purpose of your boat.

Personal Leisure Boat Insurance

For boat owners who use their vessels primarily for personal leisure activities, personal boat insurance is a necessity. This type of coverage is designed to protect your boat and its equipment, as well as provide liability coverage in case of accidents that cause damage to other boats or injuries to individuals. Personal leisure boat insurance can be customized based on the value of your boat, navigational range, and additional coverage options such as towing, salvage, and fuel spill liability.

Commercial Use Boat Insurance

If you utilize your boat for commercial purposes, such as chartering, fishing, or transporting goods, personal leisure boat insurance may not be sufficient. Commercial boat insurance is tailored to the specific needs of businesses and typically includes coverage for business equipment, cargo, passengers, and liability arising from commercial activities. Depending on the nature of your business, additional endorsements like pollution liability or professional liability insurance may also be necessary.

Charter Lines Insurance

Charter lines operate in a unique space, as they provide boat rentals to individuals or groups for recreational purposes. Boat owners who engage in chartering their vessels should consider obtaining charter lines insurance. This specialized coverage protects both the boat owner and the charterer, providing liability coverage in case of accidents, damage to the boat, or injuries to the charterer. It’s crucial for charter lines operators to carefully evaluate their insurance needs and select coverage that adequately protects their assets and passengers.

Key Factors to Consider

When exploring boat insurance options, several factors deserve consideration. These include:

Boat Value and Replacement Cost: Determine the value of your boat and opt for insurance coverage that adequately reflects its worth. Replacement cost coverage ensures that you receive compensation equivalent to the current market value of the boat in case of a total loss.
Navigation Area: Inform your insurance provider about the geographical limits within which you intend to operate your boat. Some policies have restrictions on navigational range, and you should ensure your coverage aligns with your intended usage.
Liability Coverage: Liability coverage is critical in protecting you against legal claims arising from accidents or injuries caused by your boat. Adequate liability limits will provide peace of mind in the event of an unforeseen incident.
Deductibles and Premiums: Understand the deductibles and premiums associated with your policy. A higher deductible might lower your premiums, but be sure to choose an amount that you can comfortably afford in case of a claim.

Owning a boat is a thrilling experience, but it’s essential to navigate the waters of boat insurance to protect your investment and ensure the safety of everyone on board. Whether you’re a leisure boat owner, commercial operator, or charter lines provider, understanding the nuances of marine insurance and selecting the right coverage will provide peace of mind and financial security. So, hoist your sails, set a course, and embark on your nautical adventures with the confidence of being well protected!

Protecting Your Business from Summer Risks: Insurance Solutions for Entrepreneurs

Summer is a time of increased activity and unique challenges for businesses of all sizes. As an entrepreneur, it’s crucial to be aware of the potential risks that the season brings and take proactive measures to protect your business. Insurance plays a vital role in safeguarding your company from unexpected events and providing the necessary coverage to mitigate potential losses. In this blog post, Dial Insurance is here to help you understand the insurance solutions available to entrepreneurs and ensure your business is adequately protected against summer risks.

General Liability Insurance:
- General liability insurance is a fundamental coverage that protects your business against claims of property damage, bodily injury, or personal injury. With increased foot traffic and outdoor activities during the summer, this coverage is essential for any business owner.
Property Insurance:
- Summer can bring severe weather events such as storms, hurricanes, and wildfires that can pose significant risks to your business property. Property insurance provides coverage for damage or loss to your physical assets, including buildings, equipment, inventory, and furniture. Make sure your policy includes coverage for natural disasters specific to your region.
Business Interruption Insurance:
- A disruption to your business operations can occur at any time, and summer is no exception. Business interruption insurance helps cover the financial losses incurred when your business is unable to operate due to a covered event, such as property damage or a natural disaster. It can assist in paying ongoing expenses and replace lost income during the recovery period.
Cyber Liability Insurance:
- With the increased reliance on digital technology, businesses are vulnerable to cyber threats year-round. However, the risk may be heightened during the summer when employees may work remotely or use public Wi-Fi networks. Cyber liability insurance provides coverage for data breaches, cyberattacks, and the associated costs, including legal fees, notification expenses, and customer data restoration.
Commercial Auto Insurance:
- If your business relies on vehicles for operations, commercial auto insurance is crucial. It provides coverage for accidents, property damage, and liability claims arising from the use of company-owned vehicles or when employees use their vehicles for business purposes. As summer often involves more road trips and increased driving, it’s important to ensure your coverage is comprehensive.
Workers’ Compensation Insurance:
- Summer activities may present additional risks to your employees, such as outdoor work, construction projects, or events. Workers’ compensation insurance is legally required in most states and provides coverage for medical expenses and lost wages in the event of work-related injuries or illnesses. It protects both your employees and your business from potential financial hardships.
Professional Liability Insurance:
- Professional liability insurance, also known as errors and omissions insurance, is essential for businesses that provide professional services. It offers protection against claims of negligence, errors, or omissions in your professional work. This coverage can be especially valuable during the summer when businesses may encounter new projects or increased client interactions.

As an entrepreneur, protecting your business from summer risks should be a top priority. With the right insurance solutions in place, you can navigate the season with confidence, knowing that you are prepared for potential challenges. At Dial Insurance, we specialize in providing tailored insurance coverage for entrepreneurs. Our experienced agents can assess your unique needs and guide you in selecting the appropriate policies to protect your business. Contact us today to discuss your insurance requirements and secure the peace of mind that comes with comprehensive coverage for your business throughout the summer and beyond.

Crash-Avoidance Features Complicate Auto Repairs But Are Still Valued

As more new vehicles become equipped with crash-avoidance features, some owners report significant issues with the technologies after repairs, according to a recent report from the Insurance Institute of Highway Safety (IIHS).

In the survey, approximately half of those who reported an issue with equipped front crash prevention, blind-spot detection, or rearview or other visibility-enhancing cameras said at least one of those systems presented problems after the repair job was completed.

Nevertheless, many owners remained eager to have a vehicle with these features and were pleased with the out-of-pocket cost, according to Alexandra Mueller, IIHS senior research scientist.

“These technologies have been proven to reduce crashes and related injuries,” Mueller said. “Our goal is that they continue to deliver those benefits after repairs and for owners to be confident that they’re working properly.”

Still, as problems with these technologies persist, the study notes that it is important to track repair issues to further the adoption of crash avoidance features. IIHS research has shown that front-crash prevention, blind-spot detection, and rearview cameras all substantially reduce the types of crashes they are designed to address. For example, IIHS said, automatic emergency braking reduces police-reported rear-end crashes by 50 percent.

An analysis conducted by the IIHS-affiliated Highway Loss Data Institute (HLDI) showed the reduction in insurance claims associated with Subaru and Honda crash-avoidance systems remained essentially constant, even in vehicles more than five years old. But repairs can make it necessary to calibrate the cameras and sensors that the features rely on to work properly, making repairs complicated and costly.

For example, a simple windshield replacement can cost as little as $250, while a separate HLDI study found vehicles equipped with front crash prevention were much more likely to have glass claims of $1,000 or more. Much of that higher cost is likely related to calibration.

The new IIHS study found that owners often had more than one reason requiring repairs to these safety features. Most had received a vehicle recall or service bulletin about their feature, but that was rarely the sole reason they brought their vehicles in for service or repair.

“Other common reasons — which were not mutually exclusive — included windshield replacement, crash damage, a recommendation from the dealership or repair shop, and a warning light or error message from the vehicle itself,” according to the study.

Repair difficulties could motivate drivers to turn off crash avoidance features, potentially making collisions more likely. But, despite the post-repair issues, the study found that slightly more than 5 percent of owners would opt not to purchase another vehicle with the repaired feature. As reckless driving and traffic fatalities continue to rise, advanced driver-assistance systems will only become more important for the roadway safety, necessitating reliable technology.

Source: Max Dorfman | https://www.iii.org/insuranceindustryblog/crash-avoidance-features-complicate-auto-repairs-but-still-are-valued/

Why is flood insurance important?

You don’t have to live in a flood-prone area to encounter flooding in your home. This can happen at any time to anyone! Flooding can be caused by more than just natural disasters. If you own a home, you need flood insurance. There are two different types of flood insurance: the National Flood Insurance Program and private flood insurance. The area you live in will determine which type of flood insurance is best for you.

The National Flood Insurance Program is a flood insurance that is offered through FEMA. If you are located in one of the 21,000 communities that participate in this program, you should be eligible for both types of coverage offered by the National Flood Insurance Program. The two types are building property coverage and personal property coverage. Building property coverage is “replacement cost value” coverage. This means that building property coverage covers the cost to repair or replace your home up to $250,000. Personal property coverage replaces up to $100,000 of items in your home.

The other type of flood insurance is private flood insurance. Private flood insurance premiums vary based on the insurance companies that offer it. Speak with your insurance agent regarding cost and coverage plans.

You may qualify for both the National Flood Insurance Program and private flood insurance. Depending on the value of your home and contents in it, you might be better off getting both to protect yourself in the event of a flood.

Flood Facts:

Just one inch of water can cause more than $20,000 in damage.
It takes just six inches of fast-moving water to sweep an adult off their feet and 12 inches of water to sweep a car away.
Flash floods typically carry water between 10 and 20 feet high.
If you live in a 100-year flood plain, your home has a 1% chance of flooding each year.
Moving water at 10 mph carries the same pressure as wind blowing at 270 mph.
If your home is in a flood plain and you have a federally backed mortgage, you are required by law to carry flood insurance.

Give our office a call to discuss all your flood insurance options!

Source: https://www.daveramsey.com/blog/need-flood-insurance

Safe Driving

Do you want to save money on your auto insurance by driving safely? Most companies are using car telematics programs to do so.

Car telematics programs are wireless devices that communicate with each other. In the world of auto insurance, this means that insurers collect data by using a cell phone app or a small in-car tracking device. Yes, that might sound intimidating but there are many reasons these devices could be useful to you.

Dial Insurance

Sources:

https://www.brickhousesecurity.com/gps-trackers/apps-vs-devices/

https://www.compare.com/auto-insurance/resources/how-insurance-telematics-work

https://twocents.lifehacker.com/should-you-let-your-insurance-company-track-your-drivin-1845201248

auto insurance auto tips safety tips

Flood Preparedness: Before, During, & After

Flooding is a temporary overflow of water onto land that is normally dry. Floods are the most common natural disaster in the United States. Failing to evacuate flooded areas or entering flood waters can lead to injury or death. Floods may:

The result from rain, snow, coastal storms, storm surges, and overflows of dams and other water systems.
Develop slowly or quickly. Flash floods can come with no warning.
Cause outages, disrupt transportation, damage buildings, and create landslides.

Preparing for a Flood

Know Your Risk for Floods – Visit FEMA’s Flood Map Service Center to know the types of flood risk in your area. Sign up for your community’s warning system. The Emergency Alert System (EAS) and National Oceanic and Atmospheric Administration (NOAA) Weather Radio also provide emergency alerts.

Purchase Flood Insurance – Purchase or renew a flood insurance policy. Homeowners insurance policies do not cover flooding. It typically takes up to 30 days for a policy to go into effect so the time to buy is well before a disaster.

Plan Ahead – Plan for your household, including your pets, so that you and your family know what to do, where to go, and what you will need to protect yourselves from flooding. Learn and practice evacuation routes, shelter plans, and flash flood response. Gather supplies, including non-perishable foods, cleaning supplies, and water for several days, in case you must leave immediately or if services are cut off in your area.

In Case of Emergency – Keep important documents in a waterproof container. Create password-protected digital copies. Protect your property. Move valuables to higher levels. Declutter drains and gutters. Install check valves. Consider a sump pump with a battery.

If you are under a flood warning:

Find safe shelter right away.
Do not walk, swim or drive through flood waters. Turn Around, Don’t Drown!
Remember, just six inches of moving water can knock you down, and one foot of moving water can sweep your vehicle away.
Stay off bridges over fast-moving water.
Depending on the type of flooding:
Evacuate if told to do so.
Move to higher ground or a higher floor.
Stay where you are.

Staying Safe During a Flood

Evacuate immediately, if told to evacuate. Never drive around barricades. Local responders use them to safely direct traffic out of flooded areas.
Contact your healthcare provider If you are sick and need medical attention. Wait for further care instructions and shelter in place, if possible. If you are experiencing a medical emergency, call 9-1-1.
Listen to EAS, NOAA Weather Radio, or local alerting systems for current emergency information and instructions regarding flooding.
Do not walk, swim or drive through flood waters. Turn Around. Don’t Drown!
Stay off bridges over fast-moving water. Fast-moving water can wash bridges away without warning.
Stay inside your car if it is trapped in rapidly moving water. Get on the roof if water is rising inside the car.
Get to the highest level if trapped in a building. Only get on the roof if necessary and once there, signal for help. Do not climb into a closed attic to avoid getting trapped by rising floodwater.
Staying Safe After a Flood
Pay attention to authorities for information and instructions. Return home only when authorities say it is safe.
Avoid driving except in emergencies.
Wear heavy work gloves, protective clothing, and boots during clean up and use appropriate face coverings or masks if cleaning mold or other debris.
People with asthma and other lung conditions and/or immune suppression should not enter buildings with indoor water leaks or mold growth that can be seen or smelled. Children should not take part in disaster cleanup work.
Be aware that snakes and other animals may be in your house.
Be aware of the risk of electrocution. Do not touch electrical equipment if it is wet or if you are standing in water. Turn off the electricity to prevent electric shock if it is safe to do so.
Avoid wading in floodwater, which can be contaminated and contain dangerous debris. Underground or downed power lines can also electrically charge the water.
Use a generator or other gasoline-powered machinery ONLY outdoors and away from windows.

Source: https://www.ready.gov/floods#:~:text=Find%20safe%20shelter%20right%20away,bridges%20over%20fast%2Dmoving%20water

home tips Homeowner Homeowners Insurance info insurance