What Do You Need to Know before Getting Construction Insurance?
Construction and contract workers are the ones who bring a building from an empty plot of land to a sprawling skyscraper. Many construction sites can have hundreds of workers on-site simultaneously, with some of the most diverse occupations from crane operators and civil engineers to superintendents and construction laborers.
And with so many workers on-site, there is plenty of construction risk involved in each and every project. Nearly 5,000 construction workers are killed on the job in the United States each year, or about 12 people per day. This includes accidents such as:
- The scaffolding collapse that happened in Houston that injured 6 workers
- The pane of glass that fell from a construction site in NY that injured 3 bystanders on the street below
- The construction worker who was killed when the wall fell on him in Newtown
With so many factors to look out for, you need a company that has a dedicated construction insurance staff to help you do what you can to minimize your risk exposure. The right construction insurance for the construction business will protect you from the unpredictable hazards of the construction profession. And with our experts on the case, your business will be safe from liability due to equipment damage, job site injuries, or vehicle accidents.
What Does Commercial Construction Insurance Cover?
A good construction insurance policy that gets you quality coverage will give you peace of mind, knowing that whatever happens, your business will be safe and be able to rebound from any disaster. The specific coverage you get will depend upon a number of factors, including company size, employees, and the type of work you perform. Here are some of the types of construction insurance you may want to consider:
Commercial Property Insurance FAQs
In most states, general liability insurance is required in order to get a contractor’s license. This coverage will protect your business if you are responsible for injury or property damage to others, such as a worker being injured by a fall or one of your tractors going off course and damaging some local property.
Most construction businesses need liability insurance for construction workers to protect themselves against medical damages, attorney fees, injury damages, lawsuits, investigations, and even abuse coverage for liability. General liability insurance usually doesn’t cover employee injuries and auto-related damages.
This coverage will protect your organization’s materials for on-site property damage of a site under construction or renovation of a building or structure, including materials, fixtures, and/or equipment being used. The coverage limit of this policy is based on the value of the structure when completed.
In some cases, you can get additional endorsements to your builder’s risk insurance. These endorsements usually include debris removal, earthquake, flood, equipment breakdown, emergency removal, expediting expenses, and fire department service charges.
Professional liability insurance will protect you if you give advice or give a consultation that ends up being incorrect and leads to damage, such as suggesting someone to use a weaker material when building their house that is structurally unsound, leading to a collapse.
This construction coverage will protect your business for up to 12 months if the business is unable to function due to a disaster such as a wrecked vehicle or if your tools were stolen.
In most states, worker’s compensation is required to cover employees’ medical diagnosis and treatment from a job-related injury, illness, or death. It will cover wage loss and medical benefits to workers injured in the course of employment.
Employees who file claims for this type of liability insurance for construction workers could do so if their injury or illness was caused on the job. Some of the examples include injuries that happened as a result of a fall or an accident that occurred while operating machinery.
Commercial vehicle construction insurance is a customized casualty solution that will protect transportation risks from trucking operations of all sizes and cover your cars, trucks, and other vehicles should they damage or cause damage to other vehicles. A typical commercial auto policy includes medical payments, auto liability, comprehensive coverage, and collision coverage.
Umbrella liability insurance will add extra coverage protection to your insurance plans and will increase the amount of coverage your business has. In short, umbrella liability insurance picks up where your general liability insurance stops.
Excess liability insurance provides casualty coverage solutions to protect businesses against potentially catastrophic losses. With high capacity and exceptional program design flexibility, we build strong, unified towers of liability protection in an attempt to meet the sophisticated needs of major corporate clients.
Types of Construction Bonds
Most jobs will require you to have proper bond coverage to even bid for a job. These include:
The insurance company or a bank issues a performance bond to guarantee satisfactory completion of the project by your business.
Hold Harmless Agreement
Hold harmless agreement is a contract commonly provided by the subcontractor to the contractor or builder designed to release one or both parties from legal claims. Most often, one party agrees not to sue the other party for any expenses, damages, or losses arising from a transaction or activity between the two parties.
Bid Bond Surety
The bid bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds.
How Much Does Construction Business Insurance Cost?
Different types of construction work cause different degrees of risk to the construction business and the workers on-site. The variety of exposure to this risk is one factor that impacts the cost of the insurance for the construction business.
Other factors include:
- The coverage needs of your construction business.
- Work vehicles and claims history.
But the best way to get construction insurance quotes is to speak to one of our insurance specialists and learn everything you want to know about the best construction insurance for your specific business needs!
If you are interested in construction insurance you might like to check also engineering insurance.
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