If you’re in the construction business, you understand that there are many hazards that arise. Fortunately, insurance can help you protect your business against financial losses in the case of covered events. Don’t let one accident or misstep put your business at risk. Instead, learn about the types of insurance coverage that can defend your company against emerging risks. At Grand Mutual Insurance Services, we customize your policy to your industry and specific concerns.
What Emerging Risks Do Construction Contractors Face?
From construction and design defects to worker injuries, there are many risks faced by construction contractors. Let’s look at examples of each one before delving into specific types of construction insurance. Here are a few examples:
- A worker falls off scaffolding, breaking her leg. Workers’ compensation can cover the lost wages, medical expenses, and other costs associated with the injury.
- There’s a misunderstanding regarding project specifications, resulting in a costly rework. Errors and omissions insurance can pay for legal costs associated with the error.
- A severe storm forces you to stop construction on a new project. Business interruption insurance can reimburse you for lost income and covered expenses until conditions improve.
- Your subtractor doesn’t complete the work on time, causing project delays. A bond surety can pay for the cost to replace the subcontractor or to compensate the owner for the delay.
- You adopt new software to streamline your workflow but a data breach brings the project to a halt. Cyber insurance can help you cover the recovery costs and deal with the security issues.
Types of Construction Insurance That Can Reduce Risk
Your construction contract will probably require general liability insurance. General liability insurance protects your business against property damage and bodily injury that occur on a project. It also covers copyright infringements and unintentional damage caused by construction and installation.
The policy covers medical bills, property damage, and other costs associated with covered events. We often recommend pollution liability insurance to cover your business against accidental contamination of the construction site.
Workers’ Compensation Insurance
Construction laborers work hard and face many physical risks. Protect your people with workers compensation insurance, which covers lost wages and medical expenses for job-related injuries.
Our agents can help you understand the legal requirements for workers compensation for your construction business.
Commercial Auto/Equipment Insurance
You’ll also need commercial insurance for your vehicles and construction equipment. This might include commercial auto insurance or equipment insurance, depending on your operation. Our team can help you ensure that your trucks and other vehicles have adequate coverage for the type of building you specialize in. It’s ideal to have this coverage to meet state requirements and prevent financial losses due to accidents and construction-related damage.
Builder’s Risk Insurance
This insurance handles damage to the structure during construction. It usually includes fire, vandalism, and weather events. Most other construction insurance doesn’t cover the unfinished structure, so this coverage is a must for high-budget projects.
Contractor’s Tools and Equipment Insurance
Construction tools may cost thousands of dollars to replace. To protect your tools and equipment, we recommend contractor tools and equipment insurance. This type of policy covers tools less than five years old, clean drills, wrenches, hammers, and circular sauce. It also handles stolen tools covered under your insurance policy.
Professional Liability Insurance
Professional liability insurance, or errors and omissions insurance (E&O), can protect you against legal claims against you or your subcontractor. It’s essential coverage if you work on large budget projects.
Have questions? Our team at GMIS is here to help.
At Grand Mutual Insurance Services, we are committed to providing you with the most up to date information on the insurance market. Reach out to GMIS today for personalized guidance, and maximize advantages for growth and success:
info@grandmutual.com
888.732.5994