Running a successful construction company is all about managing the details without losing sight of the big picture. Rome wasn’t built in a day because it takes time to make great things! Part of maintaining and growing a construction organization is having the right support in a field that’s inherently filled with risk. Construction business insurance helps protect against astronomical fees resulting from injuries, property damage, and misunderstandings between parties. It’s always an opportune time to make sure you have the right coverage in place in case of an unforeseen incident. CoverHound can help you learn more about why it’s important to have the right policies working for you.
There’s a reason that everyone entering a worksite needs to wear protective gear like a hard hat. Construction sites are typically action-packed, complete with large machinery, the opportunity for human error, and unpredictable terrain. According to The Balance, construction liability insurance may cover you if you’re found liable for:
− Injury claims, like medical expenses, funeral cost, and court-awarded compensations
− Damage claims to customer property or making customer property unusable
− Product claims, like damages caused by a product that your company installed
− Copyright claims if a competitor sues you for copyright infringement on a design
In short, commercial general liability insurance protects your company if someone seeks damages for bodily injury, personal injury, medical bills, or property damage. It does not cover professional negligence. The Insurance Information Institute (III) notes that this is one of the most important forms of business insurance due to the frequent nature of liability lawsuits.
Just consider this example. The Palm Beach Daily News reports that a couple filed a lawsuit against the Palm Beach Synagogue and two construction companies late last year alleging that a piece of crown molding fell and hit Maxine Crandall in the head, resulting in permanent injury. The suit claims that the construction companies failed to secure the building’s materials properly. The couple seeks more than $15,000 in damages.
Professional liability insurance, or errors and omissions (E&O), covers situations in which your advice or counsel may lead to financial losses for your client, per the III. Unlike general liability coverage, professional liability coverage covers negligence, inaccurate advice, misrepresentation, violation of good faith and fair dealing.
Construction Business Owner recommends that contractors ask themselves whether they “enter into explicit design-build or construction management contracts” and if over the course of their work, “failure to exercise the appropriate degree of skill and care cause harm to others.” If they answer yes to either or both, they should consider protecting themselves with professional liability insurance.
Commercial auto insurance can cover damaged property and medical bills if you or an employee gets into an auto accident during work. It’s especially important if your construction company owns a handful or a fleet of specialty vehicles. Most states require a minimum amount of liability coverage for your commercial vehicles, but you’ll likely want to protect your property and your team with more extensive business vehicle insurance.
If a worker sustains an on-the-job injury, workers' compensation can cover lost wages and subsequent medical treatment. It will also protect your company financially from lawsuits alleging that workplace conditions led to injury or illness. It’s mandatory for a good reason.
Build a construction business insurance plan that works for you by using CoverHound’s easy comparison tool. If you store client and employee information online, consider adding cyber protection that minimizes damage to your business in the event of a security breach.
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