General contractors, specialized contractors, home builders, remodelers and even carpenters need to minimize exposure to risk with construction insurance customized to the specific hazards their employees face on the job. The right blend of coverage will help limit financial risks in the four major categories of property damage, income loss due to business interruption, employee injuries and other liability risks (injuries or property damage caused to others not associated with your company).
Most states require you to have at least a general liability insurance policy in order to get a contractor’s license, and many clients will require their contractors to have additional insurance, so a customized construction insurance package enables you to bid on new jobs competitively. Even when it’s not required, properly insuring your construction business adds value and professionalism.
While protecting your employees and your clients is the main goal of construction insurance, nobody wants to pay more than they need to for adequate coverage. Your agent is not only your partner in creating the most cost-effective policy package for your business, but also at your service to provide certificates of insurance and any other documentation you need on time to win new business.
As much as you trust your team and train them to do their jobs safely, working at busy construction sites with heavy machinery and other contractors present puts everyone involved at risk for accidents and injuries. Your employees can work confidently when they know you stand behind them with the right insurance in place, and your clients will thank you for it too. You’ve worked hard to build your business, so let’s talk about how to protect it while minimizing costly risks and liabilities.
Get in Touch with an Agent
Some of the policies you may want to consider include:
- General liability insurance: This critical form of coverage covers 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 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 the 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.
Here are some of the businesses in the construction trade that benefit from construction insurance:
- General contractors: Oversee the whole construction project
- Heavy contractors: Construct streets, roads and infrastructure
- Home improvement companies: One-person remodelers to larger renovation companies
- Specialized Contractors: Masons, carpenters, framers, plumbers and electricians
Click on the Get a Quote button to contact us for a construction contractor insurance quote.
