Construction is an inherently dangerous business, constantly ranking at the top of the most dangerous industries to work in. Luckily, with effective management and solutions, this danger can be greatly reduced. Nonetheless, it is crucial that construction companies arm themselves with good business insurance policies which protect them when things go awry – and they will eventually. Below we offer you 4 concrete reasons why construction companies need business insurance.
1. General liability
Although you can train your workers until the cows come home, accidents and human error still happen. Normally this isn’t too much of an issue for most businesses, but a minor slip-up at a construction site could quickly lead to death or serious injury. As a result, you require general liability insurance to protect your company against death and injury claims, as well as damage claims and product claims which can arise when projects don’t go as planned. You can also use this policy for copyright claims, which may occur, for example, if a competing company sues you for allegedly infringing the copyright on one of their project designs.
2. Professional liability
This insurance, also known as E&O (errors and omissions) cover, protects you if your advice or counsel leads to bad consequences for your client, such as financial losses. This type of insurance is more geared toward professional negligence, misrepresentation, poor advice, violation of good faith and fair dealing practices. If failing to carry out your work at an appropriate level could lead to clients suing you down the road, it would advisable to seek professional liability insurance.
3. Commercial vehicles
If you or one of your employees is involved in a crash while driving a commercial vehicle for the company, commercial auto insurance could cover your subsequent medical bills and any damaged property, including the car itself. If your company has a fleet of vehicles, which is not unlikely, you should strongly consider getting extensive commercial auto insurance which protects you, your team, and your vehicles.
4. Workers’ compensation
As is the case for the vast majority of businesses, you are legally required to have workers’ compensation insurance if you own a construction company. This type of policy is very common, and will cover lost salary and medical bills in the event that one of your team is injured on the job. It will also protect your company from being sued by injured workers, which is as good a reason as any to make sure that your workers’ compensation insurance is up to scratch.
If you run a construction site and you’re looking at various forms of business insurance but aren’t sure which is right for you, get in touch with us today! We have years of experience in the insurance industry and can point you in the right direction.