Construction sites can be dangerous places to work. According to Safety and Health Magazine, across a 45-year career, there’s a 75% likelihood of construction workers suffering a disability as a result of workplace injuries. After an accident or injury on a construction site, the chances are a costly lawsuit is on the way. As well as potential harm to employees, construction sites can cause damage to the environment and much more. Therefore, it’s important to have appropriate insurance coverage for all eventualities – find out more below.
No matter how much planning and skill go into a project, mistakes happen. Professional liability insurance protects your business from financial loss as a result of mistakes. However, you should note that professional liability won’t cover the costs of rectifying the mistake.
All businesses should have general liability insurance, which protects against general injury claims and any medical bill expenses. Further, if you cause property damage, general liability cover will help recoup reparation costs.
Workers’ compensation insurance is mandatory in the majority of states. This type of cover supports your employees by preventing loss of wages or expenses relating to workplace accidents. Having workers’ comp in construction is especially important because of the increased likelihood of accidents on a construction site.
Business Vehicle and Commercial Auto
If your business owns any vehicles, you will need to have commercial auto coverage to protect your assets. If you use a personal vehicle for business, it’s best to title it to the business to avoid any grey areas involving insurance. Average vehicle insurance won’t cover you for damage done to the car as a result of your construction company.
Pollution liability coverage is exactly what you think it will be – cover for damage to the environment caused by chemical leaks and much more. Typically, general liability won’t include pollution, but you may be able to add a clause for basic cover. However, a separate policy will have much more scope and protection.
As the world moves into the digital landscape, there’s more opportunity for cybercriminals to breach businesses and steal vital data. Therefore, you should have high-quality cyber insurance to cover any related costs. For example, if client data is leaked, your business will face an expensive lawsuit; cyber cover will increase your business’s chance of survival.
Often required to secure contracts, a surety bond protects clients if you fail to complete the project. Surety bond insurance will cover the cost of damages to the client, which is typically set at around 10%.
Inland marine insurance gets its name from the traditional means of shipping transport of equipment – hence marine. However, this insurance has evolved to include all types of transportation. To protect your equipment on site, general liability will be enough. However, if it’s damaged en route, only inland marine cover will suffice.
Construction companies are prone to lawsuits and expensive payouts for damages, which is why they need cover for every eventuality. If you string together all policies above, you will find satisfactory cover for your business.