Q: What insurance protection does our ministry need for a construction project?

A: In addition to liability insurance that can protect people from the costs associated with injuries on construction sites, there are other risks associated with building projects that require special insurance.

Builder’s risk insurance covers unfinished buildings and the construction materials on construction sites. Standard property insurance policies provide little or no coverage for these risks, unless specifically endorsed for that exposure. Brotherhood Mutual offers a builder’s risk endorsement. Ask your Brotherhood Mutual agent for more information about this important protection.

Construction Bonds Can Provide Protection

In addition to protecting people and property during construction projects, ministries should also consider what they will do if their contractor is unable to finish their project on time—or at all.

Construction bonds reimburse for extra costs incurred when construction projects are delayed or left unfinished. Brotherhood Mutual does not offer construction bonds, but ministries preparing for large construction projects may want to discuss this option with their insurance agent and attorney.

Recommended Resources

Learn more about this topic with our article, Construction Challenges.

More Questions?

Do you have a question that wasn’t covered in this article? Submit your question to Brotherhood Mutual’s Legal Assist team.

This information is intended to be helpful. However, it is not legal advice, and reading it does not create an attorney/client relationship. Every circumstance is different, and an organization's rights and obligations vary by jurisdiction. That's why we strongly encourage you to regularly consult with a local attorney as part of your risk management program. 

The information is accurate as of the date of publication; however, changes in law or regulation over time may affect the accuracy of the information presented.