Whether you’re building your own home or working on someone else’s, if you work in construction, you probably already know that it’s one of the most dangerous jobs out there. Between the heavy equipment, high costs, and possible lawsuit threats from property owners if something goes wrong, it’s important to make sure you have the right type of construction insurance in place before you even think about starting the job.
What kinds of problems can occur on a construction site?
Injury and property damage are two major issues. Liability insurance covers your legal responsibility when someone gets hurt on your property or claims that they have been harmed in some way. For example, if you build a retaining wall on your property and it collapses because of faulty construction, injuring a child on her bike, your liability insurance would cover any medical bills resulting from her injuries.
Why is construction insurance necessary?
While many construction workers don’t think about insurance policies, it’s important to have construction insurance on hand. Since homes and businesses are constantly being built or repaired, you can never be too careful when it comes to keeping your employees and other contractors safe onsite. If someone is injured while working, they should receive medical treatment without worrying about how they will afford their bills. More importantly, if someone dies during a construction project due to your company’s negligence, there could be legal repercussions.
How can construction insurance help me?
Imagine for a moment that your business is involved in an accident that wasn’t of your own making, but which still caused significant damage. This could happen if your crane operator accidentally hit an apartment building or if something in one of your workspaces caught fire—either way, you could be left with an expensive problem on your hands. Your commercial liability policy will provide coverage in these situations.
What things are covered by construction insurance?
It’s important that you understand what is and isn’t covered under your construction insurance policy. Many companies will cover you for lost tools, materials and equipment; but it’s always important to know exactly what each component covers. Some policies will have exclusions that prevent certain things from being covered in certain situations. Before taking on a project, look into what you can do to protect yourself against costs associated with damaged property and accidents during job site visits.
Who should get it?
Business owners and employees who work in construction will benefit from having construction insurance coverage. Also, who complete work for their clients should consider adding their client as an additional insured. This way, if anything happens while they are working on a project, their coverage will protect them and their client against any liability.
What are the costs?
If you’re just starting out, your costs might be low. However, it’s important to do some research into how much you might be paying for workers’ compensation and other types of insurance. Remember that one way for insurance in the make money is by having a large number of customers with small premiums; as your business grows and becomes more profitable, your premiums will also increase.