Construction Insurance

Construction companies - be it excavation or stucco plastering contractors all face a great level of risk that can result in accidents and injuries, which can then lead to costly claims and lawsuits.

For that reason, construction companies - irrespective of the sector they operate within are recommended to take out the necessary insurance for construction companies in other to financially free themselves from any liabilities in case there is a lawsuit filed against the firm.

Besides, having insurance will also protect the employees and as well as the clients, and make the whole working relationship between all parties a whole lot smoother.

Below, we will explore what insurance policies are relevant for construction companies as well as which exact construction contractors can benefit from such insurance.

There are many different types of construction insurance policies that construction companies can benefit from. The level of coverage you get should depend on the size of your company, your budget, how many employees and company cars your business has, the state you operate out of, and more.

For a more detailed overview of some of the most recommended insurance policies for construction contractors, please take a look below.

The cost of construction insurance can vary depending on a number of factors. These would include the size of your business, the state you operate out of, the insurance company you decide to go for, as well as the level of coverage you take out.

Generally speaking, you can expect to pay around $5,000 per year on construction insurance. Do note that the final price can go up and down depending on the factors above.

Typically, construction contractors pay an average of:

• $825 per year for general liability insurance
• $3,000 per year on worker’s compensation insurance
• $1,800 per year on commercial auto insurance
• $180 per year on contractor’s tools and equipment insurance

Construction insurance policies are relevant for pretty much every single construction company out there regardless of the service they provide. Despite that, below, you can find some examples and why these particular construction contractors need insurance.

Concrete Contractors

Concrete contractors: from damaging the customer’s property while pouring concrete to getting into an accident with the cement truck - these are some of the common accidents that concrete contractors get into on a regular basis.

Depending on the damage incurred, the cost to fix the issue at hand can be quite significant, which is why concrete contractors are always recommended to take out concrete insurance.

Debris Removal Contractors

Debris removal contractors face the risk of bodily injuries, allegations of negligence, and property damage on a daily basis. This exposure to risk can quickly become a reality and land the debris removal contractor in a legal mess.

For that reason, debris removal contractors are always recommended to opt-in for debris removal insurance. When you have such a policy in place, the insurance company will cover the costs associated with the legal case and financially free you from any liabilities.

Excavation Contractors

Excavation contractors make use of heavy machinery and equipment on a daily basis. The slight misuse of the said machinery can not only lead to serious bodily injuries but also irreversible property damage.

In case of an accident, the excavation contractor can be held liable, and without excavation insurance in place, they will have to pay for all expenses out-of-pocket.

Highway, Street, and Bridge Construction Contractors

Highway, street, and bridge contractors: from slips and trips that can lead to mild injuries to falls from height - highway, street, and bridge construction contractors are exposed to a significant level of risk every day.

In the unfortunate event of an accident, the contractor can be held liable. For that reason, highway, street, and bridge construction liability insurance is highly recommended as the insurance company will cover all associated costs that the construction company may be liable for.

Masonry Contractors

Masonry contractors: the masonry trade involves the lifting of heavy objects as well as cutting, dressing, and laying stone and brick. Masonry contractors are no exception to the rule when it comes to accidents.

For the most part, masonry contractors are mostly exposed to the risk of bodily injuries and property damage, which can quickly land them in a legal mess in the event of an accident.

With masonry insurance in place, the masonry contractor will be safeguarded against any financial liabilities in case of a claim or a lawsuit that results from an accident or an injury at the site of work.

Paving Contractors

Paving contractors: handling hot asphalt and operating heavy machinery and equipment are some of the day-to-day responsibilities of paving construction contractors. As such, accidents and injuries can happen in a split second, which can result in the paving contractor being held liable for the damages incurred.

In the event of an accident - be it bodily injury sustained due to the misuse of a particular tool or equipment or property damage - when the construction company has paving insurance in place - the insurance company will cover all financial losses that the paving contractor would have otherwise had to incur.

Power and Communication Line Construction Contractors

Power and communication line contractors: from mild to serious bodily injuries to accidents that involve property damage, power, and communication line construction companies are exposed to a tremendous amount of risk every day,

As a result, they are recommended to take out the necessary insurance policies, which will safeguard the construction company in case a lawsuit is filed against them.

Property Preservation Contractors

Property preservation contractors have the responsibility of maintaining and securing a foreclosed property. And as such, they are solely responsible for everything in the property - including any property damage incurred or if a visitor gets injuries while visiting.

Such accidents can land the property preservation contractor in a financial mess unless they have taken out property preservation insurance, in which case, the insurance company will cover all financial aspects of any claims and lawsuits that might have arisen.

Renovation Contractors

Renovation construction contractors have the duty of restoring commercial and residential buildings with the goal of bringing them back to life and making them serve their purpose again.

With that, renovation contractors are exposed to a great deal of risk, which varies from mild to serious bodily injuries, accidental property damage, and in some cases, even allegations of negligence.

These are all events, which can land the typical renovation construction company in a financial mess if they don’t have renovation insurance in place.

Roofing Contractors

Roofing contractors work at height, which means that a single slip, trip, or fall can cause serious bodily injuries and in some cases - be even fatal. Such accidents can leave a huge financial burden on the average roofing construction company.

Because of that, roofing construction companies are always suggested to opt-in for the necessary insurance policy in place, which will free them from any financial liabilities in case a lawsuit is filed in the event of an accident or an injury.

Sheet Metal Contractors

Sheet metal contractors: from accidental trips and falls that lead to bodily injuries to allegations of negligence or even unsatisfactory work are some of the most common reasons for claims and lawsuits to be filed against sheet metal construction companies.

In the event of a lawsuit, a sheet metal contractor with an insurance policy in place will be freed from any financial liabilities that may be owed to the third party that has initiated the lawsuit.

Stucco Plastering Contractors

Stucco plastering contractors are responsible for the decoration and the ornamentation of interior walls. Despite the fact that the trade of stucco plastering is quite a risk-free profession, accidental property damage and vehicular accidents while traveling to and from the client's site are some events that can take place, which can land the construction company in a legal mess.

For that reason, stucco plastering insurance is recommended, which will shield the construction company in case a lawsuit or a claim is filed against the contractor.

Water, Sewer, Pipeline, Communications and Power Line Construction Contractors

Water, sewer, pipeline communications and power line contractors: accidental electrocution, property damage, allegations of negligence, and unsatisfactory work are some of the risks that water, sewer, pipeline, communications, and powerline construction companies face on a daily basis.

In the event any of the above-mentioned scenarios take place, the construction company can be held financially liable for the damages incurred, which can be devastating for most businesses.

For that reason, water, sewer, pipeline, communications, and power line construction insurance is highly recommended.

New Housing Construction Contractors

New housing contractors: building a house from the ground up carries a lot of risks to the new housing construction company. From allegations of negligence, unsatisfactory work, and delays to property damage and bodily injuries, new housing construction contractors can be held liable in the event a range of different scenarios take place.

With a new home construction insurance in place, the new housing construction company will be freed from any financial liabilities in case any party involved in the project decides to file a lawsuit against the construction company.