The purpose of construction insurance is to protect you from financial losses arising out of claims. In general, claims can come in 3 forms: third party claims; employee claims; damage to property claims.
When your construction insurance does not include coverage for all 3 of these, you leave yourself open to financial loss. Please read further to learn how to protect your business.
Insurance tips from Contractors Liability specialists
As a contracting business owner, we strongly advise you to invest in coverage that protects all areas of your business. We say this because if you don’t, you’ll leave your company vulnerable.
You may think that you are adequately covered, and find out that you are not only when it is too late. This often happens to contractors who go for cheap insurance without checking that the carrier has a good reputation. But this is not the only reason you could find yourself in trouble without contractor insurance.
Never ignore the small print
Let’s face it, you are unlikely to read through the small print of your insurance contract. Few of us do. This means that you rely on the insurance company to have your back. You expect us to provide adequate insurance for all your needs. You also rely on us to explain any exclusions to the policies. We want to be sure that you are properly covered for the specific needs of your company.
The financial consequences of not investing in comprehensive construction insurance are far reaching. If you think only your business will take a hit, you are mistaken. We have seen builders with the wrong coverage suffer in all areas of their lives. We go out of our way to secure the best interest at rates you can afford so that you don’t end up in this position.
The tragedy of bad insurance advice
It is heart-breaking to see contractors go out of business as a result of insufficient insurance coverage. These are the things you could lose if you are not careful:
- Your contracting business including your assets, your livelihood and your reputation
- The home that you live in, and savings
- Your marriage
3 Insurance tips for contractors
So let’s take a look at the 3 ways you can protect yourself from the financial implications of accidents and unforeseen circumstances. It’s good to remember that even if it is not your fault when something goes wrong that causes financial loss, you can still be held liable.
Earlier we mentioned your 3 areas of vulnerability:
- third party claims
- employee claims
- property damage claims.
There is no one policy that covers all 3 of these areas. The good news, though, is that if your purchase all 3 at the same time you will get a better rate. These 3 policies will make up the backbone of your construction insurance program.
1. Third party claims
Here you need General Liability Insurance for claims made by a third party that suffers financial loss as a result of your course of business. For example,
- your roofer may drop a tile onto the roof of your client’s vehicle. This constitutes third part property damage
- a visitor to your job site may trip over your equipment and suffer bodily injury.
2. Employee claims
These are covered by Workers Compensation Insurance. This coverage is mandatory in all 50 states. Workers Compensation is an insurance contract that you buy to protect your employees if they are hurt at work. Coverage includes:
- 2/3 of their wages while they cannot work
- health insurance costs and
- costs of retraining for another job if they are not able to do the work they were doing before being injured.
3. Damage to your work
Builder’s Risk Insurance covers more than just labor, materials and equipment that are needed for new construction project, it can cover profits as well.
Turn to Contractors Liability for Construction Insurance
We hope that this article has given you the confidence to check that you are properly covered in all areas. We can assist you with an assessment of your construction insurance. We’ll find the best coverage at the best rates from the best carriers. Please give us a call if you are worried about your coverage. We can help! Call Contractors Liability on 866-225-1950
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