Running a construction company involves risk at every stage, from job sites to managing projects and employees. Having the right construction insurance plans is essential to protect your business, finances, and reputation. Here’s an overview of key insurance policies every construction company should consider.
1. General Liability Insurance
This construction liability coverage protects against third-party claims for injury and property damage. Whether someone is injured, or their property gets damaged, general liability insurance helps cover medical bills and legal fees. It’s often required by project owners as part of insurance requirements to ensure everyone involved is protected.
2. Commercial Auto Insurance
If your team drives vehicles to transport tools and equipment or materials, commercial auto insurance is essential. This policy covers damage to vehicles and protects against financial losses from accidents, keeping your business owner and employees covered on the road.
3. Professional Liability Insurance
Also called “errors and omissions” insurance, this policy protects your business from claims of mistakes or negligence related to a construction project. If your work causes problems later—such as design flaws—professional liability insurance can help cover the cost of corrections or lawsuits.
4. Inland Marine Insurance
When transporting high-value equipment between job sites, inland marine insurance protects against loss or theft. Construction businesses rely heavily on specialized tools, and this coverage ensures that unexpected incidents won’t disrupt your work or lead to significant financial losses if equipment is damaged or lost during transit.
5. Workers’ Compensation
In the construction industry, accidents happen. Workers’ compensation provides coverage for employee injuries on the job, including medical bills and lost wages. This coverage is often legally required and is crucial for protecting contractors and employees alike.
Other Types of Coverage to Consider
- Builder’s Risk Insurance: Covers structures under construction.
- Business Owner’s Policy (BOP): Combines multiple policies, ideal for small businesses in construction.
- Equipment Breakdown Coverage: Covers the cost of repairing or replacing damaged equipment, plus possible loss of income for the downtime it takes to replace or repair the equipment.
- Commercial Umbrella Policy: Provides additional coverage above and beyond the limits of your underlying policies.
Why Building Contractors Insurance Is Essential
Whether you’re working on residential homes or commercial spaces, construction company insurance policies ensure you’re ready for the unexpected. These plans not only protect your construction project but also help you stay compliant with insurance companies’ requirements. For any construction businesses, having the right types of coverages ensures long-term success by safeguarding against costly setbacks.
Investing in the right insurance will protect your business from financial losses and allow you to focus on what you do best—building great projects. Partner with insurance professionals who understand the construction industry to customize a plan that fits your unique needs. With Colby Insurance Group, you can secure peace of mind and focus on your business.
