Construction Insurance: Who Needs It?

The construction industry is full of risks. Therefore, you must insure your construction company to manage the risk associated with your profession and transfer that risk to your insurers.

Construction insurance is about protecting yourself and your employees and making it possible for you to make a living. With the right contractor’s insurance policy, you can be sure your company will continue flourishing for years to come.

Types Of Construction Insurance

Consider the following types of coverage for your business if you are a construction company owner:

General liability insurance
This type of coverage covers you from accidents at construction job sites. Examples include bodily injury to third-party entities, property damage, and personal injury.
Workers’ compensation
This coverage helps if any workers fall ill or become injured during a construction project. In an event like this, your policy will typically cover this individual’s medical expenses and wages.
Auto insurance
Construction insurance can provide commercial auto insurance if your employees need to drive your company car during a project. This policy generally includes bodily injury and collision coverage.

Builder’s risk insurance

This policy protects you from “named perils” and covers the project building, the materials, and the equipment you use. Commonly covered perils include fire, explosions, theft, vandalism, and weather-related events.

Professional liability insurance
Also known as errors & omission insurance, it protects you if one of your construction projects has a mistake.

Who Needs Construction Insurance?

Both large and small businesses in the building industry need construction insurance. However, the following workers need the most:

  • Electricians
  • Handymen
  • Carpenters
  • Landscapers
  • Drywall installers
  • HVAC technicians
  • Welders and masons
  • Roofers and painters
  • Tile, stone, and flooring installers
  • Concrete and general contractors

The best way to know if you are required to get a construction insurance policy is to discuss your situation with a licensed insurance agent.