Think about how much planning, preparation and paperwork goes into building a commercial or residential structure. It’s a lot, to say the least! And while a construction crew will handle the actual build down the line, it’s important to nail down the back-end logistics to make sure that the process goes smoothly from start to finish.
Every detail matters, from how a business insures its office to which professionals they choose to work with to draft plans and make models. Here are three ways that construction companies overlook construction business insurance—and why it’s so important to avoid skimping in this area!
Working with consultants and planners
Building plans don’t materialize out of thin air; behind every blueprint is an architect or engineer. If a conflict arises during the planning stages, you don’t want to be stuck playing the “blame game” with a project consultant. It’s important that everyone on the project has adequate professional liability coverage from the get go. According to the Insurance Information Institute, this coverage, frequently called “errors and omissions insurance” includes:
Violation of good faith and fair dealing
Any company with commercial space needs liability coverage
Absolutely any business with a commercial space, regardless of industry, needs general liability insurance for that space. If your company ever meets with clients in an office, you’ll need a policy to protect them in case they sustain bodily injury or property damage on your premises. If you keep electronics, specialty supplies or samples in your commercial space, you’ll want to protect its value with property coverage.
Luckily, a Business Owners Policy (BOP) bundles these two important policies into one package. That way, if an accident occurs—any covered event ranging from a client tripping over an upturned rug corner to a devastating fire and beyond—your company won’t have to pay exorbitantly for medical bills, legal fees or brand-new equipment. You will also be covered in case of business interruption. After all, even if your business stalls, bills don’t.
No industry is immune to cyber hacks these days
Does your construction-adjacent business use the internet to operate? We thought so. If you deal with clients’ personal, professional or financial information, you could have something that hackers want. The Miami Herald outlines a few costly cases of businesses falling victim to cyber attacks (one including a hospital that had to pay a $17,000 ransom to take back its computer system) and reminds us that, “Given that any company with access to the internet is at risk of a cyberattack, contractors and others in the construction industry should be aware of the attendant risks and take steps to mitigate those risks.”
Cyber insurance will be your friend here, and can mean the difference between recovering after a hack or closing your doors for good.
As you can see, construction business insurance actually goes far beyond just the worksite. If you’re involved in any of the planning stages of construction—architecture, engineering, consulting, customer service, etc.—then you may need these types of coverage. Learn more from the experts at CoverHound today!