The best insurance policies allow your construction business to take on risk without the added worry of financial loss. Construction is an expensive business. As a contractor trying to minimize overhead costs, you may wonder; “Is it necessary for me to purchase so many insurance policies?”
In fact, it’s more than necessary. In some states, it’s the law. Construction is a high-risk business. According to a 2019 survey conducted by KMPG, 78% of construction companies feel risk is on the rise in this sector. In article 1 of our 5 part series, let’s take a look at the 4 best insurance policies for your construction company.
What Are The 4 Best Insurance Policies For Your Construction Business?
- General Liability: This is a crucial coverage to have because it protects your business in the event of:
- Third party claims for bodily injury
- Property damages
- Harm to reputation
- Advertising mistakes
- Medical costs
- Damages to rented properties caused by employees or sub-contractors.
General Liability will pay for legal fees if a lawsuit is brought against you. While General Liability is not compulsory by law, most project owners will insist on you having coverage to bid on their project. At the minimum, we recommend having General Liability insurance as one of the best insurance policies to protect your construction business.
- Builder’s Risk: This policy is for constructions in progress. It starts on the day construction commences, and ends when the building is ready for occupancy, or use for which it was intended. Builder’s Risk covers; building materials, temporary structures, electrical work, machinery, and construction signs from theft, vandalism, destruction by fire, smoke, riots, and inclement weather.
- Workers Compensation: This is one of the best insurance policies to cover your employees and uninsured 1099 subcontractors. It covers them in case of injury on the job. The policy payouts go towards medical care, costs incurred during recovery, and compensation for missed wages. The payouts also go towards funeral expenses in case of fatalities. Workers Compensation is a requirement by law. You do not need this cover if you have no employees.
- Commercial Auto Insurance: This policy is for vehicles used in your construction business. Payouts go towards vehicle repair costs in case of accidents. Policy payouts are also made to cover medical expenses or legal costs. For example, if you or your employee is sued after an auto accident. The four main coverage types are:
- Liability coverage
- Physical damage coverage
- Medical payments coverage
- Uninsured motorist coverage
Get Insured And Protect Your Business
In construction, accidents happen. Accidents are unplanned for and costly. A laborer might get hurt, or machinery might break down. Property might be damaged, or a work vehicle might get involved in a crash. Paying out of pocket for any of these eventualities can result in financial losses for your business. At worst, they can bankrupt you. With the best insurance policies in construction, you protect your business and shift the risk to your insurance company. You can run your business with the confidence that accidents or not, your business will flourish.
Call Contractors Liability For The Best Coverage Today
At Contractors Liability, we have extensive industry experience and representation in 50 states. We are available to guide you on the best Contractors Liability Insurance policies for your construction business. Call us today on 888-676-0923