Construction insurance is an umbrella term for insurance policies that are specifically geared to cover the dangers faced by those involved in construction work. If you own a construction business, you will need insurance to protect against several risks you and your employees may face on a day to day basis.
Common features to a construction insurance policy include:
General liability insurance covers basic and common accidents that may occur as a result of the business’ everyday activity. This includes coverage for claims against the business concerning bodily injury, property damage and personal and advertising injury.
Construction can be dangerous for all employees involved, operating heavy machinery and working with sharp equipment. Workers compensation is required for most businesses depending on your state and offers coverage in case your employees are injured on the job. It can cover medical payment, wage replacement, disability benefits and more.
Where general liability insurance covers non-professional negligence, professional liability insurance covers professional negligence. This refers to accidents that occur due to a specialized or professional service that causes a client to lose money. If one of your employees causes damage to a client’s house by mistake, professional liability insurance can pay for the damages and protect your business in case of a lawsuit.
Commercial Auto Insurance
Most construction workers have trucks and vans to travel between clients and transport equipment. Personal auto insurance may not cover these vehicles while they are being used for work purposes, which is why construction insurance policies include commercial auto insurance. Commercial auto insurance includes various coverages for these vehicles, such as:
- Comprehensive Coverage: This insurance covers damages to the vehicle caused by fire, wind, hail, lightning, smoke, falling objects, theft, vandalism and more.
- Collision Coverage: Collision coverage provides compensation for damages to the vehicle caused by a collision with another vehicle or object.
- Liability: Liability insurance covers bodily injury and property damage the driver may cause to someone else while operating the insured vehicle.
- Medical Payments Coverage: This insurance covers medical bills the driver and their passengers may face after an accident, no matter who is declared at fault.
- Uninsured/Underinsured Motorist: This insurance covers damages incurred in an accident involving another driver who is not carrying insurance.
Pollution liability insurance covers your business from claims concerning pollution. This may come from damages or pollution caused by your business’ equipment, chemicals, etc.