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It’s the end of the year and with the end of the year comes setting goals. If one of your goals is to become a business owner in the construction industry then you have a lot of work ahead of you. Starting a construction business will require lots of planning, hard work, and decision making.  One of the most important decisions that you will have to make about your new business is what types of business insurance coverage to get how much to get.

With so many options, sometimes it’s hard to decide what’s needed and what’s extra. You might have looked online, it’s only left you more confused with lots of term in your head. To start you off on the right track, let’s go over the ones you will need for sure. Then, let’s talk about how to get free quotes from an insurance agent today so you can get expert advice on exactly what you need to get right to work on your new job site.

General Liability Insurance Coverage
General Liability Insurance covers the cost of lawsuits brought against your company by third parties. These lawsuits can be over property injury or bodily damage. They will claim this damage was caused by your business.

If your construction business is sued, you have to pay. Regardless of whether you win or not, you will have legal fees, settlement costs, and damages. Fortunately, General Liability Coverage covers the cost. General Liability Insurance doesn’t cover every lawsuit, but it covers many. In general, it will help with:


  • Property damage (job site damage)
  • Client (or third-party) bodily injuries & resulting medical costs
  • Injury to Reputation

General Liability Insurance isn’t the only policy you’ll need, but it does cover many of your company’s biggest risks. Liability coverage effectively shields you from lawsuits that could otherwise bankrupt your small business.

Workers Compensation
As a construction professional, you know all too well the risks of your industry. You’re at risk of on-the-job accidents that result in bodily injury as well as illnesses resulting from handling hazardous materials. Even the sites with the best risk management or the best-prepared roofing contractor can be the victim of unforeseen events.

If one of your subcontractors is hurt or falls ill while at your construction project, your contracting business could be held responsible. Workers’ Compensation Insurance is your line of protection in these cases. Contracting business owners rely on this insurance coverage to cover the medical expenses related or earnings the employee missed while recovering from a job site accident.

Commercial Auto Insurance Coverage
If you or your employees regularly commute to your site in work vehicles, Commercial Auto Insurance an essential business insurance policy. Commercial Auto Insurance provides coverage to void the high costs of vehicle repair, medical expenses, or potential lawsuits that can come from unforeseen auto accidents.

Even if you’re employees are safe drivers, a random roadblock could result in the need for proof of insurance for your fleet. Regardless of how often you use vehicles for your contracting business, this type of policy will protect you even if it’s only once a year. Make sure that when you talk to the insurance agency that you have talked about all the additional insured people that will be driving. Will, you only have drivers under 25? That could cost a lot extra. Will you ensure your drivers have a clean record and their own transferable proof of coverage? That would cheapen your cost.

We hope General contractor insurance types are now easier to understand. In general, construction insurance is very similar to regular insurance. However, you will need to be aware that the costs will be higher. That’s normal once you’ve considered the high risk that working in construction entails. As the risk often determines how much an insurance company will have to pay, that means you’ll have to pay more too.

At Farmer Brown’s Insurance Agency, we offer free quotes and a detailed talk with an insurance agent about exactly what you will need for your specific business. As a business owner, we understand that you have questions and a need to save money. That’s why we won’t lead you around, with great customer service, we will tell you the insurance cost and exactly what you need with no hassle.

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