The construction industry is inherently a risky sector. Bustling jobs sites and large machinery increase the possibilities of damages and injuries, no matter how cautious the workers stay.
And that’s not all. There are often instances of third-party liabilities that can ruin both reputation and finances for your construction company.
Nonetheless, construction insurance policies can help you overcome these challenges.
Here are the top must-have insurance policies that you should get for your construction company.
1. General Liability
The most basic type of insurance policy that construction companies can opt for is a general liability cover.
As the name suggests, it typically covers general damages, including injuries on the site and any harm to the customer’s property.
Notably, the insurance does not cover any damage caused due to professional negligence.
2. Professional Liability
Thankfully, the coverage that does not fall under general liability can be sought as an add-on.
Professional liability would cover any damage or injury that occurs due to mistakes committed by the workers.
However, this cover would again not cover the cost of rework but only the liability to error.
3. Pollution Liability
Construction companies often need to comply with county or state guidelines for their impact on the environment. It selectively refers to the pollution that a construction job creates.
The state and county laws can sometimes be too strict about following. In such cases, a construction insurance company can offer pollution liability coverage.
As the name suggests, this policy would cover any liabilities that could arise from any potential pollution accident at the construction site.
4. Business Vehicle and Commercial Auto Insurance
Regardless of the size of the fleet, if you have any vehicle titled to your business, you should consider getting a business vehicle and commercial auto insurance policy.
Consider this; if you use your vehicle to run errands for your construction business, you might not get full coverage from your motor insurance company.
In contrast, having commercial auto insurance would ensure that any damage or liability is covered.
5. Inland Marine Insurance
Construction businesses often need to transport their equipment and other tools from one site to another. General liability insurance might not cover any damage to these tools and pieces of equipment during transit.
That’s where having inland marine insurance can come to the rescue.
Some insurers also include builder’s risk insurance and bundle it with inland marine coverage.
6. Worker’s Compensation Insurance
Last but not least, every construction company needs worker’s compensation insurance. Most states mandate buying worker’s compensation insurance for construction businesses.
It is to protect employees from lost wages and medical expenses resulting from job-related injuries.
Apart from this, it also protects your construction company from possible lawsuits for personal injury at work.
Construction workers are often regarded as high-risk professionals. The industry as a whole is subject to unique risks covering a wide array of possible incidents.
Therefore, having different layers of protection to safeguard your construction business is probably the best decision you could ever make. But, make sure to consult with your insurer before deciding the right product(s) for your business.