Insurance for construction company: If your company is part of the construction industry, you know that it has very particular risks and the possibility of high losses. It takes workers, contractors, big machines, and expensive tools to get the job done.
The possibility of accidents, injuries, and damage to your property or the property of others is always present, and lawsuits are not at all uncommon either. Advancing technology and machinery may be alleviating some of these risks, but also adding others.
How can you protect your assets? Having the right insurance and the right coverage!
Discover the indicated insurance for construction company
Table of Contents
1. BOP – Business Owner Police
If you own a small business, the Business Owner Police are the bare minimum your business should have. A BOP combines protection for all major property and liability risks in one insurance package. It is usually sold at a lower premium than the total cost of individual coverages.
The policy allows the company to customize its coverage very flexibly and broadly. Depending on the needs, risks, and type of service of each business. This package protects your buildings, equipment, and inventory, and can cover you financially if your business unexpectedly closes due to a covered loss.
You can include coverage to protect your cash, your equipment, the car you use to transport staff and equipment, your deposit, and even having insurance against customer fraud or employee dishonesty.
2. General Liability – General Liability Insurance
Part of the BOP, Commercial General Liability (CGL) or liability insurance, protects your company’s financial health by protecting it against potential personal injury and property damage claims from your customers related to your construction service.
Even taking all measures to ensure a safe working environment, and taking all precautions when dealing with your client’s space, accidents can happen.
General Liability also protects your company from claims arising from damage to a customer’s property or from damage caused by a product you installed, such as faulty plumbing or poorly sealed windows. However, the insurance does not cover damage resulting from professional negligence.
3. Professional Liability – Professional Liability Insurance
Professional liability coverage covers errors in the design or engineering of a project. Unlike General Liability coverage, which covers personal injury and/or property damage, this covers errors that can have a financial impact on a project.
Special professional liability policies were developed for specific professionals and their particularities. Professionals have two types of a legal duty to their clients. These must perform the services for which they were hired and perform them by the appropriate standards of conduct.
Because professional liability coverages are written to cover mistakes made by these professionals, these coverage forms do not cover intentional losses such as fraud or embezzlement.
4. Pollution Liability – Responsibility for Pollution
Pollution Liability provides coverage if your company’s service is responsible for a pollution incident. General liability policies often exclude pollution liability, although an endorsement may be added to provide some limited coverage.
These pollution endorsements often provide significantly less coverage than a separate standalone pollution liability policy, however, it is important to determine your risk level to ensure you are properly covered.
In some cases, you may be able to combine a pollution and professional liability policy into one, talk to your BRZ agent.
5. Commercial Auto Insurance
Commercial Auto Insurance is very similar to personal auto insurance. However, this insurance covers events and situations specific to cars adapted or used only for commercial purposes.
If you use your car to transport employees, materials, or equipment, it will need a special policy. It is a big mistake to keep personal insurance on this vehicle.
Commercial vehicles you can insure range from cars and trucks to much larger vehicles like tractor trailers, dump trucks, or cement trucks.
6. Inland Marine Insurance
Inland Marine Insurance has been around since the earliest civilizations and even today, much of the economy still dependstransportingt of cargo ships. The term now does not just mean moving goods, but also includes special properties such as contractors’ equipment and the responsibility of installation floats and fitters.
Ocean Marine Insurance – marine insurance: provides coverage for loss or damage to a ship, in addition to covering loss of cargo in transit, whether on water, in the air, or on land.
Inland Marine Insurance is a type of marine insurance coverage that covers a wide range of specialist properties. Historically, it is a development of marine insurance. Coverage has grown to include property that involves only one element of transport, or better described as coverage for “land properties”.
7. Contractor License Bonds or Surety Bonds
Some cities and states require builders to obtain permits and permit titles, so-called Licenses, and Surety Bonds, to ensure that customers receive the services and ccomplete work they were promised.
It’s a legally binding contract that also helps ensure that the contractor pays for any materials and labor needed to complete the job and doesn’t let the customer down.
Most contracts for cities and towns require a performance and payment guarantee to predict your financial interest. Some private projects require this insurance to anticipate some value for the project. Being linked means your business is financially solid enough to do the work required.
Workers’ Compensation
Most states require some form of Workers’ Compensation to protect employees from lost wages and medical expenses resulting from work-related injuries.
Workers’ Compensation is business insurance that provides relief to employees who have suffered a work-related injury or illness.
This policy covers:
- salary losses
- Medical expenses
But it also compensates the dependents of employees who died because of their work.
This insurance allows workers to collect aid for:
- Wounds and injuries
- Total or partial disability
- Death
It also helps protect your company from lawsuits related to these injuries.
