Do you have construction insurance coverage?
If you work in the Construction Industry, chances are you don’t have enough coverage. In addition to Liability Insurance, which every contractor should have, there are several other types of insurance that can protect you and your business from financial damage. It’s important to know about the different types of construction insurance available to you, as each type of policy has its own specific benefits, so it’s crucial to choose the right one for your needs.
Here are some of the most common types of construction insurance policies.
General Liability Insurance:
General liability insurance is a core element in a contractor’s insurance requirements. This type of insurance protects you from bodily injury, property damage, and personal injury that might occur on the job site. It also covers you for any legal costs associated with defending yourself in a lawsuit.
- Bodily harm is related to injuries sustained by a third- party at the site of work. For example, if a ladder falls on a person and they require medical care, that, along with any legal costs, will be covered by your insurer.
- Property damage is any damage that may occur to the property in the line of work. Say a worker accidentally drops a wrench on a hardwood floor and dents it. Thus, you’ll be liable for potentially costly repairs, unless you have the right insurance to cover it.
- Personal injury covers you for any damage in the form of defamation and copyright infringement in advertisements.
Worker’s compensation Insurance:
Workers compensation insurance covers the employees of your company when they are injured while on the job. As a construction professional, you know all too well the risks of your industry. 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, which can divide into the following:
- Medical bills
- Continuing recovery costs connected to an injury.
- Lost wages due to an injury.
- Funeral costs and death benefits.
- Any legal cost incurred.
Moreover, workers compensation insurance is a legal requirement in most states. In fact, some states have severe penalties with regards to lack of workers compensation insurance.
Commercial Auto Insurance
If you or your employees regularly commute to your site in work vehicles, Commercial Auto Insurance is an essential business insurance policy. Commercial Auto Insurance provides coverage to avoid the high costs of vehicle repair, medical expenses, or potential lawsuits that can come from unforeseen auto accidents.
Even if your 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. Commercial Auto Insurance includes comprehensive, collision damage and liability coverage for the ones who drive the vehicles. These will allow the business to get payment for the loss or damage of the vehicle and even when something like your tools get lost inside the business car.
Inland Marine Insurance
Inland marine Insurance’s use is to cover valuable equipment, materials or supplies that are being used in the construction projects or transported to another place, against any losses that could occur due to theft, fire, weather and other perils. This insurance can be purchased as a standalone policy or as an endorsement to a construction General Liability Policy.
There are no standard inland marine insurance policies but mostly this type of insurance has the following three characteristics:
- Can be made based on any specific type of property for the insured.
- The insured can choose the right policy limit for the property.
- The coverage is usually written in an all risk basis meaning all physical losses to property that are direct are covered except for excluded losses.
Professional Liability Insurance
Also known as Errors and Omissions Insurance, this coverage will pay for all your legal fees (up to the policy limit) if a client sues you for mistakes, negligence, inadequate work, inaccuracies, misrepresentation or similar allegations regardless of whether it’s your fault or not. While no insurance policy can completely eliminate the risk of being sued, Professional Liability Coverage can help to minimize the financial impact if you get involved in an adverse situation. In some cases, this type of insurance may even help to cover the costs of defending yourself in court. If you are a professional, make sure you have the right Professional Liability Insurance in place to protect yourself and your business.
Umbrella insurance is a type of insurance that provides additional coverage above and beyond your existing General Liability insurance policy. This Insurance is designed to give you an upgraded protection in the form of liability coverage. This means that if you’re sued for damages that exceed the limits of your regular policy, your umbrella policy will kick in to help cover the costs. Umbrella insurance can also provide protection for certain types of claims that may not be covered by your standard policy, such as defamation or false arrest.
While umbrella insurance is not required by law, it is something that every property owner should consider. After all, nobody knows when an accident or natural disaster may strike. And if you’re ever faced with a major claim, you’ll be glad you had the foresight to protect yourself with umbrella insurance.
Some Final Words:
Construction accidents can happen in an instant, and they often result in costly damage. That’s why it’s important to have the right coverage provided and in place before something goes wrong. Luckily, there are several different types of construction insurance policies available, so you can find one that fits your specific needs. Contact our team today to get started with a commercial insurance policy that’s tailored specifically for your business purposes. We can help you find the coverage you need so that you can rest easy knowing your company is well taken care of.