Contractor Insurance


General contractors, specialized contractors, homebuilders, remodelers, and even carpenters need to minimize exposure to risk with construction insurance customized to the hazards of the profession. The right blend of coverage can help you limit your financial risks due to jobsite injuries, equipment damage or vehicle accidents may occur during the course of your construction project.

4 Types of Risk Construction Companies Face

  • Property damage: Damages to company property or equipment
  • Income loss: Loss of income due to business interruption from events such as fire or severe storm damage
  • Employee injuries: Job-related injuries, illnesses or deaths
  • Liability risks: Injuries or property damage caused to others not associated with your company

Some of the policies you may want to consider include:

  • General liability insurance: This critical form of coverage cover your financial risk if you are responsible for bodily injury or property damage to others. If you work in construction, general liability insurance is required in order to get a contractor’s license in most states.
  • Builders risk insurance: You can think of this as construction liability insurance. It provides coverage specifically for on-site property damage of a site under construction. This coverage varies by company, but may also cover the construction materials on site, prior to installation. The coverage limit is based on the value of the structure when completed.
  • Professional liability insurance: If you provide consultation, design work or advice as a part of your professional services, this form of liability coverage can protect you. Also known as “errors and omissions” insurance, this coverage is designed to cover potential claims due to a loss that a client may experience from your services.
  • Loss of income insurance: Covers loss of income that results from insured a business interruption, up to 12 months
  • Workers compensation: This coverage is required in most states to cover employees’ risk of job-related injury, illness or death. Pays for medical diagnosis and medical treatment. Covers about 60% of lost pay if employee cannot return to work
  • Commercial vehicle insurance: If you use cars, trucks, vans or any other vehicles for business purposes, commercial vehicle coverage will provide protection for any bodily injuries or property damage to third parties that you cause.

Who Can Benefit From Construction Insurance?

Here are some of the businesses that participate in the construction trade that can benefit from construction insurance.

  • General contractors: Oversee the whole construction project
  • Heavy contractors: Construct streets, roads and infrastructure
  • Home improvement companies: One-person remolders to larger renovation companies
  • Specialized Contractors: Masons, carpenters, framers, plumbers, electricians

Managing Risks with Construction Insurance

As a contractor, you take on risk of property damage, employee injury and vehicle accidents. You are exposed to the risk of bodily injury or property damage to third parties. With the right business insurance in place, you can minimize the risk and liabilities that can steal your profits.

Construction workers look at and discuss plans.


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