Just like all businesses need to have insurance, construction businesses have certain insurance policies that can make a big difference in case someone is injured on site, weather causes a project to pause or important equipment is damaged.
There are a lot of different policies out there to consider purchasing, but first take into account the size of the company, the number of employees and the type of work that needs coverage.
What types of insurance policies do I need for my construction business?
There are a lot of different options available that can provide your construction business with the right amount of coverage.
Here are a few options to consider:
General liability insurance: this insurance provides financial coverage if you are held responsible for any injury or property damage. In most states, this insurance is required in order to have a contractor’s license.
Business income: this policy will cover loss of income for up to 12 months in case your business is stalled due to weather or some other event that is out of your control occurs.
Builders risk insurance: this is important for a construction company, it provides coverage specifically for any on-site property damage that occurs on a site that is under construction.
Professional liability insurance: in the instance you offer any consultation or design work services, this coverage offers protection from any potential claims if a client isn’t satisfied with your services.
Workers compensation: this coverage is required in most states and covers employees’ potential risk to job related injuries, illness or death.
Commercial vehicle insurance: if your construction company uses cars, trucks, or any other vehicle for business purposes, commercial vehicle coverage provides protection in case you, or one of your employees, causes an accident.
How do I choose a construction insurance plan that’s right for me?
Before making any final decisions on what insurance policy you think your construction business needs, talk to your insurance agent. Your insurance agent will be able to help you put together a plan that makes sense for your unique business and can answer any questions you may have. After all, purchasing insurance is purchasing protection for your business, and protecting your business is protecting your livelihood.
About Jason Cass
I am the Co-Owner of The Insurance Alliance. I love to speak nationally on the topic of insurance and I am the author of "Customer Service is Just Foreplay" an Amazon Best Seller. I don't sell insurance, I help people buy it.