What Is Piling Guarantee Insurance?

construction image by Sandra Henderson from Fotolia.com

Piling guarantee insurance is an insurance offered by certain piling contractors. It provides a wide insurance coverage, insuring both the piles used for the foundation and the building set on the foundation.


Developers and construction workers use piling when constructing a building that requires a deep foundation. In this case, ready-made piles of concrete, wood, or steel are driven deep into the ground to better stabilise the foundation of the building. Independent piling contractors are usually hired for this.


Some piling contractors offer piling guarantee insurance. This guarantees the piles used for the building's foundation will not be detriment to the building. This insurance covers not only the piles but also the building, so if the piles are flawed, the insurance covers the demolition of the building, the replacement of the piles, and the reconstruction of the building.


Piling guarantee insurance provides much broader coverage than the more commonly used product guarantee insurance. Product guarantee insurance provides insurance of only the piles used, so if there is a flaw in the pile, it is the client's responsibility to pay for the demolition and reconstruction of the building. Piling guarantee insurance, however, covers the cost of both the piles and the building.

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