In the construction industry, injury rates are 71% higher than in any other sector.
Because of the risk, those in construction must have insurance to protect themselves and others. Perhaps you own a business and you want to go the extra mile for your team.
Sounds familiar? Luckily, you’ve come to the right place. Here are the different types of construction insurance to consider.
General Liability Coverage
One of the best construction insurance packages is general liability coverage. This is useful if an accident happens on a client’s property, such as accidentally hitting a hammer through the wall.
General liability coverage is often the bare minimum, and many states require contractors to hold this before accepting a job.
Professional Liability Insurance
The best construction company will also hold professional liability insurance. Unlike the previous coverage, professional liability insurance protects businesses that have made a mistake on a project.
It was once the designer’s responsibility to get professional liability insurance, but now builders must do the same. If you want to learn more, check out this link.
Worker’s Compensation Insurance
Those who run a construction company must prioritize job site safety. Enter: worker’s compensation insurance. This is crucial if your team is handling heavy equipment or power tools, as an accident may arise.
If you’re not insured and a contractor is injured, then the boss must cover lost wages, medical bills, and any other costs from the destruction.
Pollution Liability Insurance
Many contractors deal with chemicals in the construction industry, so it’s important to protect them. Pollution liability insurance, for example, is a must-have if you’re bringing refueling equipment onto a site.
It’s possible to combine the pollution liability insurance with the professional cover. So, before making a purchase, discuss this with your risk advisor.
Commercial Auto Insurance
The best contractors insurance for construction companies with vehicles is commercial auto insurance.
Even if you have one business vehicle, it’s worth getting insurance so you’re protected during the workday. Plus, commercial auto insurance covers automobiles and even larger vehicles like dump trucks.
You can also consider getting inland marine insurance which will protect your team’s tools, mobile equipment, and borrowed equipment like forklifts.
Many construction companies digitally store sensitive data, so it’s important to use cyber insurance to protect it. This is especially helpful if your company uses multiple software platforms or relies on smart technology on job sites.
A major advantage is that cyber insurance is affordable, so it’ll give you peace of mind.
Main Types of Construction Insurance
Hopefully, after reading this article, you now know the major types of construction insurance available.
At the very least, general liability insurance and worker’s compensation insurance will protect the team and any mistakes on-site. You can then decide whether to get pollution liability or cyber insurance, depending on your budget and preference. Good luck!
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