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The construction industry is full of risks, especially on a busy job site with workers, contractors, and equipment. All these factors open the doors to possible injuries or damages. But as technology advances, the chances of injury or damages becomes less of a risk. However; there is still a slight chance of these things still happening on the job. You can lessen the impact of these risks by getting the right insurance coverage fit for your needs.
A business owners policy (BOP) is usually not enough coverage - take a look at the other coverage options you might need outside of a BOP for your construction business.
General Liability Insurance
General liability insurance is important to have because it protects your business from liabilities such as claims from injuries and medical expenses. It also protects your business from claims coming from and property damage on the job site. However, general liability does not cover damages from negligence - this requires a different kind of liability coverage.
Professional Liability Insurance
Professional liability insurance is designed to cover professional mistakes - be it from mistakes is designs or engineering issues. The difference between general liability and professional liability is that general liability includes bodily injury and property damage, whereas professional liability covers mistakes that impact a job financially (but only the cpst of the liability, not the cost of the rework needed).
Pollution Liability Insurance
Pollution liability insurance protects you if you are liability for pollution accidents that may happen on a construction site, such as chemicals or fuel tanks for equipment. General liability policies exclude this type of coverage but an endorsement can be added, although they provide less coverage than a separate policy.
Business Vehicle and Commercial Auto Insurance
Every vehicle you use for your business will need to have a commercial auto policy, whether it be a large fleet of vehicles, or just a few vehicles. Commercial auto policies are designed to cover vehicles ranging from trucks, tractor trailers, dump trucks, and more. A general rule to follow is if the vehicle is legal for road use, then it need to have a commercial auto policy. There are exceptions to the rule, including if the vehicle never leaves the location of your business.
Inland Marine Insurance
Inland marine coverage is the protection of transporting construction equipment ,machinery or tools from one job site to another. Generic business insurance polices provide protection of these times while at the job site, but not during the transportation process. That is where inland marine coverage comes in. A good example would be if a tool box is stolen from a truck while at a gas station - the inland marine coverage will cover the cost to replace the stolen tool box.
Contractor License Bonds or Surety Bonds
Some states require that contractors get a license and permit bond to make sure the customers receive the services they pay for and it is fully completed. This legally binding contract also helps makes sure that the contractors pay for materials and people to work the job and not leave that bill with the customers.
Workers Compensation Insurance
Most states require workers compensation insurance to protect the employees from wages lost or medical expenses in the event an accident happens on the job site. Workers compensation also protects the business from any potential lawsuits that could arise from said accidents. Most states have a set premiums but there are ways to lower the costs. One way is to lower your business' experience modification factor (which is calculated by the state). To lower this, you will need to improve safety efforts and thus will lower the number of injury claims.
Construction businesses are beginning to rely on technology more and more. With that being said, these businesses will need the right coverage to protect the data used in said technology. Even if your business is a small construction business, you should consider this type of coverage. Data shows that about half of the cyber attacks target small businesses
. But cyber coverage is usually inexpensive and offers an additional layer of protection for your business.
Being in the construction industry comes with several different types of risks all covered by several types of policies. Contact Germani Insurance Services today to get the right coverage for your construction business.